Synopsis: Power Transmission Equipment – Needs-Based Segmentation Strategy
Our client had been developing the power transmission equipment aftermarket opportunity for several years. They posed the question,” What do we need to do to dramatically grow our aftermarket business?” Our research, which was conducted across a broad cross-section of industries and plant sizes, identified three drivers of customer behavior: quality, speed and reliability. While our client was known as the quality leader, they were not the speed leader and only deemed reliable by those who knew them well. By segmenting the market based on these buying criteria, we determined the size of each segment and the strategies and investments needed to become the number one vendor on each criterion. This analysis led our client to increase their investment in the operational resources necessary to improve their scores on these criteria. Within 24 months of launching the new program, sales were up 25%.