CXHow to strategize product/service roadmap

Background:

A leading group company involved in Engg and Enterprise Solutions for manufacturing sector to group companies & 3rd parties wants to increase sales win rates, C-sat with better targeting and skills and thus improving its client centricity

Condition:

• Projects with few group companies had frequent escalations.
• Most external projects had budget and time overrun.
• Client satisfaction scores were low. Sales Win Rates and projects awarded were of low value.

Big 4 Actions:

• Improved the Project Value and Win rates based on targeting the influencers instead of the decision makers.
• Customer Satisfaction Analytics to build a predictive model and key drivers
• Coaching of Delivery Managers and Project Managers on handling client reviews, communication and relationship management (influencing framework)
• Review of internal project management process and fix internal measures, risk assessment, resource management and client dashboards

Background:

A leading independent terminalling company wants to achieve seamless delivery during build and operate and thus improving client centricity

Condition:

• Frequent surprises due to complex stakeholder network and client dis-satisfaction
• Budget and timeline overrun on large projects
• Lack of accountability for red-flags

Big 3 Actions:

• BD process was not formally defined. BD skills were missing and there were no timelines or deliverables
• Client experience during the Build (NPD) and Operate phases were not measured. Stakeholder management was only at Sr. Leadership level
• Clear Measures of Success for Client Journey were defined
• End to End Process was established with involvement of all internal members (200+)
• RACI for all tasks with internal SLAs was established.

Background:

An ITES arm of a big software company which works with enterprises across industries wanting to improve its client relationship

Condition:

One of their large account ($1Bn) wanted to terminate their enterprise contract due to issues with ITES services. Hence main focus was to prevent the churn by short term fix and long term actions.

Big 5 Actions:

• Based on Client Interviews, employee interview and discovery, identified 4 actions to be immediately initiated (Service quality, Analysis, Client review framework, Org structure change). Facilitated the agreement of action with clients
• Identified delight opportunities to clients by performing Horizontal/Vertical synergy studies and subsequent prioritization roadmap

B2B organizations can struggle with poor account growth for a variety of reasons. Some common reasons include:

• Lack of differentiation: Many B2B organizations offer similar products or services, making it difficult for them to stand out from their competitors.
• Poor target market understanding: Without a deep understanding of their target market, B2B organizations can miss key opportunities for growth and struggle to connect with potential customers.
• Inadequate sales and marketing strategies: A poorly executed sales and marketing strategy can result in a lack of lead generation and low conversion rates, hindering account growth.
• Ineffective account management: Poor account management can lead to missed opportunities for upselling and cross-selling, resulting in slow account growth.
• Resistance to change: B2B organizations may struggle to keep pace with changes in the market or adopt new technologies, leading to a lack of innovation and growth.
• Limited resources: Smaller B2B organizations may lack the resources necessary to invest in growth-oriented initiatives, such as sales and marketing efforts.
• Inadequate customer service: Poor customer service can lead to high churn rates and a lack of customer referrals, making it difficult to drive account growth.

Overall, B2B organizations need to have a clear understanding of their target market, a strong sales and marketing strategy, effective account management practices, and a willingness to embrace change in order to drive account growth.

Leadership plays a crucial role in ensuring consistent B2B account growth. A strong and visionary leadership team can create a culture that fosters growth, innovation, and customer success. Here are some ways that leadership can drive B2B account growth:

• Establish a clear vision and strategy: Leaders need to define a clear vision and strategy for growth, including specific goals and metrics for success.
• Foster a customer-focused culture: Leaders should encourage a customer-focused culture that prioritizes customer satisfaction and drives customer loyalty, which is essential for consistent account growth.
• Invest in sales and marketing: Leaders need to ensure that the organization has the resources and tools necessary to drive lead generation and convert leads into customers.
• Foster innovation: Leaders should foster a culture of innovation and experimentation, encouraging teams to test new ideas and approaches that can drive growth.
• Embrace technology: Leaders need to embrace new technologies and tools that can improve sales and marketing efforts, streamline processes, and drive growth.
• Develop strong partnerships: Leaders should develop strong partnerships with key stakeholders, such as suppliers, customers, and industry groups, to drive growth through collaboration and referral business.
• Lead by example: Finally, leaders need to lead by example, demonstrating a strong commitment to growth, customer success, and continuous improvement.

By establishing a strong leadership foundation, B2B organizations can ensure consistent account growth and set themselves up for long-term success.

There are several reasons why B2B organizations may end up with low EBITDA margins (Earnings Before Interest, Taxes, Depreciation, and Amortization), including:

• Increased Competition: Increased competition can put pressure on pricing and margins, making it difficult for B2B organizations to maintain high levels of profitability.
• Rising Costs: The cost of doing business, such as labor costs, raw materials, and overhead expenses, can increase over time. If these costs are not properly managed, they can reduce profitability and lead to low EBITDA margins.
• Inefficiencies in Operations: Inefficiencies in operations, such as bottlenecks in production processes, lack of automation, and insufficient inventory management, can increase costs and reduce profitability.
• Poor Pricing Strategy: B2B organizations that do not have a clear pricing strategy or do not regularly review and adjust their pricing to reflect changes in the market, can struggle to achieve high margins.
• Undersized Sales Team: An undersized sales team can result in missed sales opportunities, which can negatively impact profitability.
• Lack of Innovation: B2B organizations that fail to keep up with changing market demands and technological advancements can struggle to maintain high levels of profitability.
• Weak Cost Control: Poor cost control can result in the mismanagement of resources, leading to higher costs and lower margins.

In conclusion, low EBITDA margins in B2B organizations can be caused by a combination of factors, including increased competition, rising costs, inefficiencies in operations, poor pricing strategies, an undersized sales team, lack of innovation, and weak cost control. By addressing these challenges, B2B organizations can improve their profitability and achieve sustained success.

Leaders in B2B organizations can take several steps to improve low EBITDA margins, including:

Conduct a Cost Analysis: Leaders should conduct a thorough analysis of the organization’s costs to identify areas where they can be reduced. This may involve streamlining processes, reducing waste, and rethinking approaches to procurement and inventory management.

Review Pricing Strategies: Leaders should review their pricing strategies to ensure that they are in line with market conditions and reflect the true value of their products and services. This may involve adjusting prices, implementing dynamic pricing strategies, or finding new revenue streams.

Invest in Technology and Innovation: Leaders should invest in technology and innovation to improve efficiency and reduce costs. This may involve implementing new software systems, automating processes, or developing new products and services that can help the organization stay ahead of the competition.

Build a Strong Sales Team: Leaders should invest in building a strong sales team that can effectively sell the organization’s products and services. This may involve hiring new salespeople, providing sales training, or reorganizing the sales team to optimize performance.

Foster a Culture of Continuous Improvement: Leaders should foster a culture of continuous improvement, encouraging employees to identify and implement new ways to reduce costs and increase efficiency. This may involve regularly reviewing and adjusting processes, setting performance targets, and providing recognition and incentives for improvements.

Collaborate with Partners: Leaders should collaborate with partners, suppliers, and customers to identify opportunities for joint cost savings and revenue growth. This may involve sharing information and resources, developing joint ventures, or forming strategic alliances.

In conclusion, improving low EBITDA margins in B2B organizations requires a combination of strategic planning, investment in technology and innovation, and a commitment to continuous improvement. By taking these steps, leaders can position their organizations for long-term success and profitability.

To improve EBITDA margins in B2B companies, employees should develop the following skills and capabilities:

• Cost Analysis: Employees should have the skills and knowledge to analyze costs and identify areas where they can be reduced. This may involve using data analytics, process mapping, and other techniques to identify inefficiencies and opportunities for cost savings.
• Pricing Strategy: Employees should have a strong understanding of pricing strategies, including how to set prices based on market conditions, customer demand, and the organization’s cost structure.
• Technology and Innovation: Employees should have the ability to stay up-to-date with the latest technologies and trends, and be able to identify opportunities for using technology to improve efficiency and reduce costs.
• Sales and Marketing: Employees involved in sales and marketing should have a deep understanding of the products and services they are selling, as well as the needs and motivations of customers. This knowledge can be leveraged to develop effective sales strategies and increase revenue.
• Continuous Improvement: Employees should have a strong commitment to continuous improvement and be able to identify and implement new ways to increase efficiency and reduce costs. This may involve using data analytics, process improvement methodologies, or other techniques to identify and resolve issues.
• Collaboration and Partnership Building: Employees should have the ability to collaborate effectively with partners, suppliers, and customers to identify opportunities for joint cost savings and revenue growth. This may involve negotiating favorable terms, sharing information and resources, or developing new business models.

In conclusion, developing these skills and capabilities in employees can help B2B organizations improve their EBITDA margins by reducing costs, increasing efficiency, and growing revenue. This can be achieved through a combination of training, coaching, and development programs, as well as a strong focus on continuous improvement and collaboration.

Client centricity plays an important role in improving low EBITDA margins in the B2B sector. When organizations focus on their clients and put their needs at the center of their business strategies, they are able to increase customer satisfaction, improve client retention, and drive revenue growth. This, in turn, can lead to improved EBITDA margins.

Here are some ways in which client centricity can help improve low EBITDA margins in B2B organizations:

• Increased Customer Satisfaction: By putting the needs of their clients first, organizations can increase customer satisfaction and build stronger, more meaningful relationships with their clients. This can result in increased client retention and reduced churn, which can lead to improved EBITDA margins.
• Better Understanding of Customer Needs: When organizations focus on their clients, they gain a deeper understanding of their needs, preferences, and pain points. This knowledge can be used to inform product and service development, as well as pricing and sales strategies, leading to increased revenue and improved margins.
• Improved Client Retention: Client centricity can help organizations build stronger relationships with their clients, leading to improved client retention. When clients are satisfied with the products and services they receive, they are less likely to switch to competitors, which can result in improved EBITDA margins.
• Increased Revenue: By focusing on their clients, organizations can increase their ability to sell more products and services, and drive revenue growth. This, in turn, can improve EBITDA margins by increasing the top-line while reducing costs.

In conclusion, client centricity is an essential component of improving low EBITDA margins in the B2B sector. By putting the needs of their clients first and building strong, meaningful relationships, organizations can increase customer satisfaction, improve client retention, and drive revenue growth, leading to improved EBITDA margins.