FROM COMMODITISATION TO SEGMENTATION

FOR A FTSE 100 ENERGY COMPANY

Situation:

The division of this energy business, which dealt with small and medium (SME) businesses, was having a tough time. Margins were tightening, competition was tough and it seemed increasingly hard to differentiate them from the competition. They decided to build a stronger relationship with their customer base by organising the business around different market segments.

What we did:

  • Spent time with CEO and Board – gaining their buy-in and insight
  • Selected and guided a senior cross-functional team of 8 to ensure effective cross-company communication and implementation
  • Interviewed a sample of their SME target customers to understand what they really wanted from an energy company – using our Customer Insight Methodology©
  • Analysed the resulting data to:
    • segment their market
    • deepen customer insight and increase profitable revenue
    • pinpoint opportunities for additional high margin services
  • Presented strategy recommendations to the Board
    • Guided the team to create a business driven by customer segmentation, and new organisational structure
    • Restyled processes and IT systems so the staff could make the new approach work well

The outcome:

The project was extremely successful, adding massive value to their business:

  • Radically altering their approach
  • Allowing them to increase revenue by £millions and significantly reduce churn and margin erosion
  • Providing them with an effective lever to use to develop significant market pull

Focus from Blueprint for growth:

  • Customers at centre of the business
  • Every decision from customer perspective
  • Enjoyable customer interactions
  • Engage staff for performance