A New Market Strategy Changed Our World

This global player entered the high-tech hardware industry nearly 50 years ago. It is owned by a multi-billion-dollar company based outside the US with a storied 120-year history. Solid as it was, they struggled to keep their brand among the top fifteen in their market. Their sales model relied almost entirely on channel partners supported by a small in-house sales team. All channel partners offered virtually every major brand on the market, so no effort was made to move buyers toward a particular brand. The market viewed all major brands as similar in quality and function, so B2B sales opportunities always came around to pricing and availability. And since the company was up against much larger competitors that manufactured limited SKU’s in huge volume, having to compete on price was resulting in nose-diving year-over-year revenue and margins.

We were asked to help them develop and implement a new marketing strategy. We began with an analysis of the market and competition coupled with numerous in-depth win-loss interviews. Traditionally, our win-loss analysis shows more than 73% of the time there is a measurable difference between the buyer’s and the seller’s take on the major factors influencing the outcome of the win or loss. This was no exception. While not a single sales rep we interviewed said it, we found that a great deal of the wins were due to the company’s unique capability to customize the product and remotely monitor up-time and service needs. We also found that most buyers would have paid significantly more if asked.

Marketing content at all levels was pointed toward these capabilities. A series of campaigns and road-shows were released.  Their product was bundled with a managed service offering to monitor the status of the units and resolve any issues within 4 to 24 hours. Channel partners and sales reps were equipped with new sales tools, and trained to focus exclusively on buyers that had a need or desire for customization and managed service.

The result was astounding. The company left behind a highly competitive, price-driven market and entered a segment where they can clearly dominate. In fact, it may take years for their competitors to design these capabilities into their products should they desire to do so. Their revenue run-rate increased by more than 60%, and price is no longer the gating item in any sales cycle. Since this change in strategy, the company is tracking the ways its customers are making use of this customization and sharing these leading practices with potential buyers. Most notably, the market itself never changed. The company simply became more aware of the market and how it could uniquely add value.

Motum is a market leader in revenue performance consulting, working with clients from large enterprises to entrepreneurial organizations across five continents to create sustainable revenue growth and develop an “unfair” competitive advantage for the long term. Please connect with us on LinkedIn and get services details at www.motum-us.com.

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