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How B2B companies become customer-centric?

B2B, Marketing, Communication agency, Concoltancy Marketing agencies, Digital, Marketing consultation, Targeted Customer Communication, Customer Experiences, Sustainable Development , Community engagement, Social impact in Marketing, Diversity development, Communication with customers and employees
In a classic B2B company, all internal processes - organizational structure, strategic advantages, planning, segmentation are based on products.

But there are some risks, as competition is getting more difficult: new products are quickly copied, and with the advent of online sales channels and well-built logistics, geographic location is not an advantage, and customers are becoming more and more demanding. The digitalization that many companies are so concerned about right now is only a short-term advantage. Technologies are developing very quickly and becoming more accessible, and in a few years, even small players will be able to use all possible digital tools and compete with industry leaders.

To develop a long-term competitive advantage and significant capitalization growth can be achieved by transforming your business: by focusing all processes on customers.

Customer-centricity is a strategy to ensure that internal processes align with the needs of a selected customer segment to maximize long-term financial value for the company. customer-centricity is when processes within a company are built not around products, but around the client and his needs.

With this model, processes, strategic advantages, long-term planning are determined by the requirements of client segments. The company works with the needs of customers and tries to satisfy them as efficiently as possible, and not just ship as many products as possible.
Which customer segment is important for a company?
The interaction between the client and the company is an exchange of value. Determining customer value is usually fairly straightforward: there are many frameworks and consultants available to teach employees how to identify a need and meet it effectively. And what about the value for the company?

How are b2b companies prioritizing customers now? Most often it is existing or potential sales or profits. However, these criteria do not allow us to determine the true value of customers for the company. There are many additional criteria, some of which are universal, and some are specific to strategic goals:
- loyalty: loyalty to the supplier, purchasing the entire range based on the type of company;
- customer potential: the ability to buy more, capacity;
- profitability: when project costs are offset by income;
- resilience in a crisis: is the company included in the list of supported industries, will it survive the crisis;
- innovativeness: commitment to change.

There can be many of these criteria, and for each company there will be its own "golden" set, which must be relied on when assessing the customer base.

Building mutually beneficial and long-term customer relationships requires significant investment. This is why it is important to prioritize customers according to their value to the company and formulate a strategy for them that will help them get a better return on investment.
Examples of segments:

There is a segment of "champions" - these are loyal, profitable clients without potential (it has been realized - the company has already sold everything it can). At the same time, we are satisfied with the current turnover. The strategic task when working with a client is to maintain the current level of relationships, and not spend resources on upselling, marketing activities aimed at promoting additional products.

And there is a segment of “profit-seekers”. These are lucrative but disloyal clients with no potential. Companies that are always looking for the best conditions. They will leave you as soon as they are offered a better price. It makes no sense to invest additional resources in such clients: to provide them with a personal account manager, to establish personal trust. We need to work on a strategy to maximize value: focus on the uniqueness and importance of a product that competitors do not have.

Having analyzed clients in this way, you will form a "client portfolio" - separate segments and strategies for working with them.

The client portfolio model is effectively used in the banking industry. Turnover, CLV (customer lifetime value) and creditworthiness can be selected as criteria for segmenting the base. In this case, a personal manager is available for top-tier clients, who works with only one client. For the second level - a personal manager who works with several companies. And for the third level, the “Small Business Consultant” service is available.
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