Insights

A Durable Goods Manufacturer Heats Up Sales Through Customer Insights and Segmentation


Video Transcript – Erik Long, Principal


This manufacturer had slow growth. They had multiple brands in different channels; however, they were using the same value proposition with these multiple brands. And that led to a lot of channel conflict.

It was a conflict because there were different distributors who were getting the same offering, the same value proposition, but with different brands. So that complexity in what their portfolio was like was leading to a lot of confusion between the distributors and the mass retail channel that ultimately they were asking the manufacturer, “How are you going to solve this? How are you going to solve your brand portfolio strategy and deliver, perhaps differentiated value propositions to different customers?”

The big insight that we found is that the decision-making process in here involves different stakeholders. There are B2B contractors. These are the kind of contractors who are selling to homeowners; homeowners have problems with durable goods equipment [and] appliances in their home, and they needed to have an understanding of how the end users also make decisions when one of these appliances breaks.

The key insight that we helped them with is an understanding of two different decisions in the ecosystem of both of these stakeholder groups and understanding how the contractors make decisions about what they're looking for from their manufacturers, as well as what the end users are looking for when their products break and the kinds of services they're looking from the equipment, as well as from the service from the contractors.

By having this segmentation that looked at [the market], you could look through two different lenses of the B2B contractors or of the end users. That allowed them to get some compelling insights on the value proposition and on the brands that were required, and what kind of brand strategy did they need to have. That really gave them a powerful base of insights to develop their go-to-market strategy.

The first thing was it was meaningful to them. It had impact. And that gave them a common framework for understanding customer needs, gave them a common language really to communicate across business units and allowed them to tear down some of those traditional silos that had prevented them from identifying new value propositions that cut across their product lines.

And that was a new opportunity of growth for them, identifying this new value proposition that cut across their business units and allowed them to extended into different channels. And the end result of that, at the end of the day, they were able to see new growth. They were able to see incremental growth in a new channel that they'd never seen before and had record volumes moving into the mass retail channel.


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