One of our clients in the technology sector was preparing to launch the next generation of their main B2B product. The company and its products had built a reputation for quality, innovation, and reliability over generations.
However, due to innovative and high-quality products from competitors in Asia, the company had recently come under increasing price pressure and had to convince its existing customers of the new product generation.
While the product had been further developed technologically, these changes offered no immediate added value for the customers and seemed to present only internal benefits. As a result, the value proposition was quickly summarized as “more or less the same as before in the usual high quality,” which was not too convincing.
SPROUT was therefore commissioned to work out the greatest benefits for the target customer groups before the market launch.
We assembled a cross-functional team from various areas, including product development, product management, service, sales, marketing, digitalization and sustainability.
The first step was to analyse the existing product in detail and understand which elements provided value to the customers. Based on this, a value map was created to illustrate where the product offers benefits for different customer groups.
In order to gain a deeper understanding of the added value for the customer, the entire value chain and the customer journey were mapped and the relevant stakeholder touchpoints identified. A central question throughout this process was: How well do we actually know what our customers really want?
A structured interview plan was developed to talk to stakeholders along the entire value chain and uncover their Unmet Needs. These interviews were used to validate the assumptions made.
The insights gained were then compared to the identified value areas of the product. This made clear which stakeholders would benefit the most. We then analysed where and how the product could stand out from competition.
“The clear overview of where we provide which value for whom is enormously helpful in day-to-day business. It allows us to tailor the value proposition for the different groups accordingly.”
The result of this process was a clearly formulated value proposition that addresses the most important customer needs. This enabled the company to target the exact customers for whom the product offers the greatest benefit and to further expand its presence in promising markets. It was equally important to identify which aspects of the product and which customer groups should no longer be the focus in the future.
“New value options for product innovation emerged during the process – it's now clearer in which direction we should further develop the portfolio.”
Within 4 weeks – just in time for the product launch – the product’s value was clearly articulated:
“We have gained a much better understanding of the new product, and it has become much clearer which messages are important for marketing and sales.”