Selling the problem you solve, not the product you make.
The client had a strong dependency on price promotions and offers to generate demand for their products. The majority of their marketing and sales efforts were on selling these offers. As a result, they were attracting a limited set of customers – tactical, price-conscious buyers – and were not articulating the value and benefit of their core offering.
Our challenge was to develop a more customer-led approach to marketing and sales. To define their customer segmentation and a Proposition road map and Offer strategy. And in doing so, increase the average order value and overall revenue through a better understanding of their customers’ needs.
We started by reviewing operational data on their current customers, what type of businesses bought their products already, how much they spent and how long they remained. Through SIC code mapping we could quantify the size of the prospective audiences and quantify based on known data points.
The next step was to conduct qualitative desk research to gather customer insights. The client wished to undertake further proprietary research which we actively inputted into the research brief.
On combining both the quantitative and qualitative research with the clients’ product portfolio we identified potential solutions and business cases with defined target audiences and outcomes. Working with Product, Engineering and Delivery teams a road map for taking these solutions to market was agreed.
Furthermore, we worked with the clients content team to incorporate the findings of the research phase, alongside the solution value propositions. And finally, we made recommendations on a new promotional strategy, aligned with a new solution-led marketing and sales approach.
Jonathan Midenhall, CMO, Airbnb:
“Amazing things will happen when you listen to the consumer”
The new solution and promotional strategy delivered a 9 per cent increase in average customer spend within 3 months of launching. The average number of products purchased per customer also increased from 1.2 to 1.8 as a result of a more consultative, solution-based sales approach.
Content marketing moved from a very product-centric approach to become more customer-centric and outcome based. Resulting in increased engagement through social media channels and web inquiries.
With training and incentives, the sales teams were able to have a deeper customer conversation and build pipeline, beginning a move away from the highly transactional historic way of selling.
The results of selling the problem you solve, not the product you make:
Increased order value
9 per cent increase in average order value within 3 months.
Products per order
Average number of products per order increased from 1.2 to 1.8 creating stickier customers.
Web and pipeline growth
Increase in social engagement and web inquiries, along with a quarter on Quarter sales pipeline growth.