When a B2B product serves a market with diverse end-users, embracing B2C mindset helps. It drives to a 'front-end customer' strategy involving end-user segmentation and analysis. This enables B2B marketers know the true market potential, real customers’ needs and actual product gaps. Focused insights into end-user behavior help target right markets, define product right and penetrate further.
In a crowded market, end-user segmentation strategy promises business sustenance and growth. Thomson Corporation (currently Thomson-Reuters), a global information services company (offering info products/services in financial services, healthcare, law, science & technology research, and tax & accounting sectors) reinvented and transformed itself by embracing front-end customer strategy. One of its division Thomson Financial, for instance, discovered eight end-user segments in place of three corporate purchaser segments. Such insight enabled Thomson to identify segments where it had opportunities for penetration and growth, understand segment-specific needs and develop products that provide what end-users valued most.
The 'front-end customer' strategy makes more sense when market is experiencing discontinuity or a clear value proposition is lacking or a significant change in market demand patterns is observed or a new non-traditional competition is sensed. But suitability of ‘front-end customer' strategy to a few or all B2B industry types, is something which has to be explored.
No comments:
Post a Comment