Most B2B businesses assume their Most Important Customer is their direct customer and they are dead wrong. This Weekly Blast explains why and shows how you can identify your Most Important Customer(s).
Many companies have wonderful products that are performing poorly in the marketplace because their sales and marketing efforts are focused on the wrong customers. FoldedPak, the subject of this Weekly Blast, was one such example.
What is Value Innovation?:
Delivering Exceptional value to the Most Important Customer(MIC) in the Value Chain, all the time, every time. It requires you know your Value Chain and know how to identify the MIC
What is a Value Chain?
It identifies all those who are involved in a buying, selling or using transaction between you and the ultimate end user of your product or service.
Let’s take a look at an example:
ExpandOS is a substitute packaging material for peanuts and bubble wrap (see the picture below) and it’s 100% recyclable.
It is available in retail stores in North America through stores like Canada Post, Home Depot, and Staples.
B2B customers purchase machines and cardboard feed material. One cubic foot of cardboard expands to 25 ft3. The most important attribute of ExpandOS is its ability to reduce product breakage/damage in transit. The serrated edges lock together so when the package is taped closed, the contents are locked in place (see the Value Curve below): Here’s the FoldedPak ExpandOS Value Chain for their B2B business:
How did FoldedPak identify the Most Important Customer?:
They used the 3 Questions
and the 3 Question Template
The completed FoldedPak 3 Question Template shows that the Most Important Customer is the manufacturer and within that manufacturer, the Most Important Customer is operations and/or logistics.
Manufacturers of fragile, high margin products (e.g., industrial and automotive parts, dinnerware, lighting fixtures and parts, electronic products and parts, pumps and motors, technical ceramics and parts, TVs) see the value of this incredible product and are prepared to pay a premium because damage in transit is substantially reduced. Here are some examples:
Do you have questions about Value Chains and want to learn more about Value Innovation?
Want to see two amazing, 2 minute videos of ExpandOS in use?
Product surviving the Kids’ Test This is a head to head contest between ExpandOS and Peanuts. Even a raw egg survives with ExpandOS packaging.
Peanuts are just a void fill product and fragile products, e.g., raw eggs, light bulbs and coffee mugs, break in transit. ExpandOS locks products in place so there is no breakage.
Want to up your innovation game? Want to up your organization’s innovation game? Attending one of our Mastering Value Innovation Workshops is a great place to start. In 2016 we are going to change our approach. We will work with you to develop your own custom workshop that addresses your problems and you define the length and location. More information can be found in the Workshop Brochure.