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In this episode of the B2B Insights Podcast, B2B International’s Beata Miklosz and Niklas Heitland share their favorite strategic frameworks to develop winning value propositions.

Key discussion points:

• The importance of creating value in business
• The role of frameworks in market research
• The Value Proposition Canvas
• The Three Circles Framework
• The Kano Model
• The Push-Pull Framework

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Jump to section:

• Importance of Creating Value in Business
• The Role of Frameworks in Research and Analysis
• The Value Proposition Canvas
• Competitor Analysis with the Three Circles Framework
• Understanding Customer Needs with the Kano Model
• Push-Pull Framework for Introducing New Propositions

Importance of Creating Value in Business

Beata: Hello and welcome to the B2B Insights podcast. My name is Beata Miklosz. I’m a Research Director at B2B International in Germany, and I will be the host for today’s episode. I’m joined by my colleague Niklas Heitland, who is a Senior Research Executive in Düsseldorf. How are you, Niklas?

Niklas: I’m very good. I hope the weather is better for you in Munich today, but thanks for inviting me. I’m really looking forward to today’s discussion.

Beata: Thank you very much. Yes, the weather is really nice today, and thank you for accepting the invite. I’m super excited about today’s topic because we will be discussing our favorite frameworks for creating winning value propositions. I think the topic of value should really be at the heart of every business, whether it is about the value for our customers or about creating value for society, our employees, or potential employees. This should be the ultimate goal for every company.

Very often we speak about growth and looking for new growth opportunities, which is super important. However, if we do not create true value for customers and other stakeholders, the business will not grow. If we really focus on creating value, growth will follow naturally. As mentioned, today we will be talking about our favorite frameworks. You’ve been with the business now for almost three years. What do you think about using frameworks in research? What role do they play?

The Role of Frameworks in Research and Analysis

Niklas: Yeah, I imagine frameworks like a dessert in a restaurant. You’ve gone through the main course, which is our whole analysis packed with numbers, data, and insights. The goal is to finish with a bang, like a memorable dessert. When it is a good ending, you remember it even more and in a good light. That’s where frameworks come in for good research. They take all this prior analysis, which can sometimes be overwhelming, especially for other departments not deeply involved in market research, and wrap it up in a way that’s easy to digest. Ideally, you should be able to glance at the framework and immediately see what the results are saying about your research and what the key themes are.

A solid framework should be accessible to everyone, even those not deeply involved in market research. You can share it across the whole company, and everyone will understand the main points. That’s why I think frameworks are a really important part of good research. It’s a good way to end the report and summarize everything again.

Beata: Yeah, I couldn’t agree more. I like that you mentioned frameworks are not only used by market research or marketing specialists. They can be used by anyone in the company. Frameworks are great for summarizing data and showing the most important findings in an understandable way. They are also great for gathering ideas and organizing insights we already have for brainstorming within the organization.

Frameworks can be used both at the end of the process, as you mentioned, and at the beginning when you want to organize thoughts and identify what information is still needed to make solid decisions. Essentially, frameworks can be used throughout the market research and strategic processes by anyone in the organization, regardless of their role.

Now, let’s dive straight into our favorite frameworks.

The Value Proposition Canvas

Beata: So, what is your favorite framework for creating winning value propositions?

Niklas: Yeah, thanks for asking. My favorite framework is the Value Proposition Canvas. Think of it as the heart of your business model. It’s all about the promise you make to your customers—the unique value or benefit they get from your services. For example, in our market research, it’s not just about what you sell in the end, but why it actually matters to them. Creating a strong value proposition is key for your marketing, pricing, and overall success.

The Value Proposition Canvas is a great tool that can help you nail this down. It’s split into two parts: on one side, you look at your customers and what they need; on the other side, you focus on how your services, like our market research, meet those needs. When these two sides match up, we achieve what’s called a problem-solution fit.

Ideally, that’s the spot where we want to be with our services. Going into more detail, on the right side, we have the customer segment. You want to create a separate canvas or model for each customer group or persona. This helps you understand which part of your offering will resonate with each audience, as different audiences have different needs.

Further reading

What is the Value Proposition Canvas?

Read more

On the right side, you have the customer jobs—these are the tasks your customer needs to accomplish. This isn’t about your product yet; it’s about addressing the needs and goals of the chosen customer segment. When we talk about the jobs customers have, we’re listening to everything that matters to them, including functional, social, and emotional aspects.

You ask yourself: What tasks and jobs does the customer need to accomplish? What strategies do they use to solve these tasks? When and in what context do they need to complete these tasks? For example, a startup company might want to understand the market potential for their new app or product. Their jobs could include identifying target demographics (a functional job), validating their business concepts (an emotional job), and presenting data-driven insights to potential investors (a social job).

Of course, they will face some pains—things that cause frustration while trying to complete these tasks. For example, a startup might find it difficult to collect accurate and comprehensive data on their own, which is a significant barrier.

Beata: Yeah, for example, they might need to spend a lot of time on this, which is also a pain. Or the investor might not trust the data or understand it, as you just said.

Niklas: Exactly. Then they will have some fears about whether their product will meet the market’s needs and the challenge of convincing investors. These are pains that will occur on the customer side. We can also look into gains, which are the benefits for the customer experience. These are the advantages they gain from completing their task. It’s not about the product yet, but rather the satisfaction the customer feels when they successfully accomplish their goal.

As part of this framework, you focus on identifying these positive outcomes for your customer and how they would feel if they accomplished their goal. For example, when a company hires a market research firm and gains detailed and reliable data, they get confidence in their product and can present this data to investors. This results in many gains for the customer, such as gaining trust in their product and feeling satisfied.

Always remember, customers don’t buy products or services; they hire them to do a job for them.

Beata: I definitely agree with you. The Value Proposition Canvas is also one of my favorite frameworks. You mentioned different customer groups and how important it is to consider the needs, expectations, pains, and gains of these different segments. Within a company, there is often more than one decision-maker involved. Especially in the B2B space, decisions are often complex and made by groups.

For example, in an industrial company, the production manager might focus on smoothly running production, while the person responsible for sustainability will look at achieving the best possible sustainability index. Meanwhile, the purchaser might be more concerned with savings. It’s important to think about the different tasks of different people within the organization. The Value Proposition Canvas is a very handy and useful tool for creating value propositions.

Niklas: Exactly, completely right. It’s really important to keep an eye on this point. To continue the framework, on the left side, we look at how our services can meet those needs. As a market research company, we have pain relievers—our services that relieve the pain of collecting data. We can make the whole process smooth, provide accurate insights, be cost-efficient, and use advanced data tools and analytics to ensure our reports are spot on and easy to understand. It’s not just about the products; it’s about achieving actionable and good insights.

So, that’s why they hire us to do this. We provide gain creators, such as data, analytics, predictive modelling, and more, depending on what the customer needs. We can also offer market opportunities, dashboards, and visualizations to present everything in a clear and engaging way. Beyond frameworks and reports, we use our skills and knowledge to deliver valuable insights for the company. Some examples include market analysis reports, personalized consultation services, workshops, and training sessions. These services help relieve the customer’s pain points and provide gain creators, ensuring their satisfaction.

We stand out by offering value beyond the product itself. The goal is to achieve the perfect problem-solution fit. When our value proposition effectively addresses the customer’s needs for good market research, and we align our services with the customer’s jobs, we achieve this fit. This means our product is perfectly tailored to the customer’s needs, providing the ideal solution for their pain points. This creates enthusiasm and high satisfaction among customers, leading to repeat business and a strong reputation.

That’s why I think this framework is so important. It really nails down what the customer needs and what we can provide. If done correctly, it brings significant advantages and helps us stand out as a company.

Beata: I think it can be used by any kind of business. You mentioned the market research industry, but the Value Proposition Canvas can be applied to any business, whether you produce machinery, provide coloring shampoos to hairdressers, or develop software. By focusing on customers’ jobs, pains, and goals, you have a high chance of being successful in the market.

However, there are aspects not covered by this framework that can be addressed by another one of my favorite frameworks: the Three Circles Framework. This framework focuses not only on customer needs but also on the strengths and offerings of our competitors and our own strengths.

Competitor Analysis with the Three Circles Framework

Beata: The ideas and findings we summarize in the Three Circles Framework highlight areas common to all three circles. These include aspects that customers need and expect, aspects in which competitors are also good and deliver, and aspects we deliver as well. Often, these are hygiene aspects that must be delivered to be successful in the market. It’s normal for some areas to be common among all competitors.

There are also aspects important to customers that only some competitors can deliver, and we might not be able to deliver them at the moment. Additionally, there are aspects we can deliver that customers need, but other companies cannot. These aspects are our true differentiators—market-relevant features that set us apart from competitors. It’s crucial to develop, communicate, and market these differentiators. Delivering a product or solution that already exists in the market and is offered by others doesn’t bring true value to customers. Using this framework helps create winning value propositions by focusing on market relevance and competition, ultimately leading to success.

Further reading

How to Apply the Three Circles Framework in Strategic B2B Research

Read more

Niklas: Exactly. It’s a good framework for identifying differentiators, which is crucial in today’s market where there are so many services available. Finding and highlighting the most important differentiators is essential. Every company should consider incorporating this framework into their strategy. You mentioned aspects that need to be delivered by everyone, which brings me to another framework I like to use in customer value proposition projects: the Kano Model.

Understanding Customer Needs with the Kano Model

Niklas: The Kano Model is used in market research to prioritize product features based on customer satisfaction. It helps businesses understand which features will delight customers and which are simply expected. I like this framework because it identifies basic must-have features—essential features every customer expects. These features won’t significantly increase satisfaction, but if they are missing or not functioning properly, customers will be heavily dissatisfied.

Beata: Like you mentioned with the train, I’m thinking about the internet. It should be a basic expectation that when you work from home, the internet is reliable. It’s not something to boast about if you’re an internet company, but it should be delivered. It doesn’t make me super happy if the internet works, but it makes me very angry when I have problems with it.

Niklas: That’s a very good example. I think everyone has experienced that. Furthermore, we can also see performance features, which have a direct impact on customer satisfaction. The better these features are, the more satisfied the customer will be. For example, the battery life of a smartphone—there’s no doubt that a longer-lasting battery directly connects to satisfaction. Then we have excitement features, also called delighters. These are unexpected things that can greatly increase customer satisfaction when present, but they don’t cause dissatisfaction when missing. They’re like hidden gems that customers don’t expect but appreciate when they find them. For example, when you purchase something and get an extra goodie, like a free accessory or extra points, it raises customer satisfaction significantly.

Further reading

Using the Kano Classification Model to Quantify the Importance of Product Features and Attributes

Read more

Beata: I think these delight features can really increase satisfaction disproportionately. Of course, delight features might not be as important during the decision-making process as performance features. For example, when buying machinery, you might compare energy efficiency, price, and material. However, if the company also offers something extra, like additional training for employees or sustainability activities, it can delight customers and make them feel special. I’m glad you mentioned the Kano Model because it’s important to realize what features and aspects of our solution play what roles when creating a value proposition.

It’s not necessary to highlight hygiene features; they just need to be developed to a satisfactory level. For performance features, it’s important to ensure we are better than competitors. We also need to have delight features, which again ties back to differentiators.

Niklas: Exactly. I couldn’t agree more. It’s a great way to see which features of our products are important to customers and what we should market. Sometimes, what we think is different as a company might not be perceived that way by customers. This framework helps us set the right focus and can bring many advantages. I think every company should consider incorporating this business model.

Push-Pull Framework for Introducing New Propositions

Beata: Yeah. And there’s also one more framework that I think is worth discussing: the Push-Pull Framework.

When you introduce or want to introduce a new proposition to the market, it’s important to consider the factors that will help or enable customers to switch from the current solution to the new one. It’s also crucial to understand what can block the switch. You can have a great solution, but if customers can’t switch to it, you won’t be successful.

In this model, we think about aspects that support the switch, such as problems with the existing solutions or dissatisfaction with some features. On the other hand, there are aspects connected with your solution, like the benefits of the new offering. Then, we have the blocks, which can be connected to the current solution. For example, the current solution might be deeply integrated into systems and production processes, making it hard to change.

Further reading

Using the Push-Pull Model to Successfully Bring New Products to Market

Read more

In banking, many companies are reluctant to switch providers because of the difficulty in informing all partners. Even as customers, we are often unwilling to switch to a new web provider. This applies to all kinds of products and software that are well integrated into systems. There are also blocks connected to your solution, such as concerns about whether your system can be easily integrated and if all features will work smoothly.

It’s good to be aware of these aspects so that when you develop your value proposition, you address all the problems and enhance the pull factors. In your communication, inform clients about the positive aspects of the product and features that make the switch easier.

Niklas: Exactly. It’s very important and a good way to see what you should push and pull, as the name suggests.

Beata: Of course, there are other useful frameworks that can be explored by decision-makers in business. We hope these four examples show how frameworks can support decision-making and market research analysis. If you’re interested in learning more about creating winning value propositions or using frameworks in business and research, we invite you to subscribe to the B2B Insights Podcast. You can also visit our Insights Hub at b2binternational.com/insights.

For now, we’ll finish our discussion. Niklas, thank you very much for accepting the invite and sharing your thoughts on your favorite frameworks. I hope to speak to you soon.

Niklas: Thank you for inviting me. If any of our listeners have a favorite framework, we’d love to hear about it. Let us know what you think is a good framework or what you use daily. Thank you.

The post B2B Insights Podcast #64: The Best Frameworks to Develop Winning Propositions appeared first on B2B International.

What is Digital Ethnography?

Digital ethnography, which involves collecting photos and videos from respondents, is becoming an increasingly popular method of gathering unique insights that are often missed in telephone interviews and online surveys. This approach allows you to see how individuals interact with a product and gives you an up-close view of a product in its natural environment.

Digital ethnography is a valuable tool for understanding customer needs and pain points when using a product, as well as for gaining deeper insights into a particular market. Regardless of the research objectives, firsthand images from respondents can provide additional context to your findings, bringing the research to life and making insights more impactful.

Can Digital Ethnography Work in B2B Research?

The short answer: absolutely. The old saying that “a picture is worth a thousand words” holds especially true when it comes to digital ethnography. This method is a powerful complement to exploratory qualitative research, particularly when trying to understand and explore the needs, and the challenges of audiences.

Getting a deep understanding of product-related issues or everyday pain points can be challenging through interviews alone. When asked on the spot, participants may struggle to recall all the challenges they face, and they might not even recognize certain issues or needs because they seem insignificant. Digital ethnography allows us to go beyond what’s said in an interview and observe real-life behaviors and challenges in context.

And not only does the collection of photos and videos enrich research reports, making the findings more vivid and engaging for stakeholders, but it also reduces reliance on participants’ memory and self-reporting. This leads to more accurate insights into the challenges, pain points, and unmet needs that might otherwise go unnoticed.

Further Reading

Why Online Workshops & Focus Groups That Accommodate Different Personality Types Lead to Better Ideas

Read Blog

How to Conduct Digital Ethnography in B2B Research

In our experience, there are two effective approaches for conducting digital ethnography in B2B research:

Social Media Scanning

Why it’s effective: In some B2B sectors, there is a wealth of content available online where people share their challenges, frustrations, and experiences. These can include posts, videos, and photos that offer a glimpse into day-to-day working environments.

The benefit: By scanning social media, researchers can uncover needs that may seem small or insignificant but are crucial to users. For example, videos showing how drinks are prepared in cafes can show employees using scissors to cut through packaging—something easily overlooked in interviews but significant in their daily work routines.

Recruiting Participants for Additional Activities

Why it’s effective: After conducting interviews, researchers can ask participants to engage in follow-up activities, like sharing photos or videos that document their challenges over a specific time period.

The benefit: This enables participants to capture more authentic insights as they experience issues in real-time, rather than relying on memory. For example, participants could show how they store materials or stack packaging before use, providing more context than they could describe in an interview.

Further Reading

Ethnography In B2B Markets: A Guide On What, When And How

Read Article

Advantages and Disadvantages of Digital Ethnography

Traditional face-to-face ethnography requires physically visiting a location to observe respondents. When deciding whether to incorporate digital or face-to-face ethnography in a project it is important to consider the advantages and disadvantages of both methods. Here, we will focus on the advantages and disadvantages of digital ethnography.

You can read more about face-to-face ethnography here: Ethnography In B2B – A Guide On What, When And How.

Advantages of Digital Ethnography

• Increased efficiency – Digital ethnography streamlines the process of collecting insights by removing the need to physically travel to different locations. This allows for faster data gathering compared to face-to-face ethnography.

• Cost effectiveness – Without the need to travel to each location, digital ethnography becomes a more cost-effective method for collecting images and videos.

• Expanded coverage – Digital ethnography enables you to cover a wider range of locations, such as different geographies and customer sites more effectively than face-to-face methods.

Disadvantages of Digital Ethnography

However, there are some disadvantages of digital ethnography which are important to keep in mind when designing the research.

• Reduced control – In digital ethnography you depend on respondents to capture photos and videos themselves. This means you have less control over what they are capturing and the quality of the images.

• Reduced spontaneity – Digital ethnography can lack the spontaneity of face-to-face methods. Respondents could stage their images and videos, introducing potential bias in the content they share.

• Risk of misinterpretation – Without being present, it can be challenging to accurately interpret the significance of an image or video. Interpreting an image taken by someone else can risk misinterpretation of that image.

Further Reading

When to Use Qualitative Research to Better Understand Your Customers and Their Needs

Read Blog

3 Top Tips to Overcome the Disadvantages of Digital Ethnography

1. Provide clear instructions – Clearly explain to respondents what you want them to focus on in their images. Specify the dos and don’ts, such as avoiding the inclusion of people or company branding, and not staging or overly setting up the images.

2. Link questions to research objectives – Create questions that align with your research objectives for respondents to answer through pictures. For example, ask them to capture the part of the product they like most and the part they find most frustrating.

3. Additional information – Offer a way for respondents to add further explanations for their pictures, such as through open text boxes. This additional context can help in the interpretation of the images during analysis.

Further Reading

3 Top Tips for Running Effective Online Focus Groups

Read Blog

A Digital Ethnography Case Study

Our client wanted to gain a deeper understanding of how its products and those of competitors were being used by customers, with the goal of identifying pain points that required product improvements. To achieve this, we conducted telephone interviews with customers and recruited some participants to take part in an additional digital ethnography task.

After an interview was complete, we sent a survey link consisting of three questions. We asked them to take an image of the product in their workplace, an image of what they liked most about the product and an image of what they liked least. These questions mirrored the topics covered in the telephone interviews.

The images provided brought the interview responses to life, allowing us to clearly visualize what the customer had been discussing. By incorporating these images into our analysis, our client could clearly see the pain points customers were experiencing and identify specific product areas that needed to be improved.

To discuss how our tailored insights programs can help solve your specific business challenges, get in touch and one of the team will be happy to help.

The post A Guide to Digital Ethnography in B2B Market Research appeared first on B2B International.

A brief overview of some of the unique challenges involved in B2B pricing and how to handle them

Pricing exercises are a common component of market research projects and a range of methods have been developed to identify the optimal price for a new product or service being brought to market. The most commonly used methods are the Van Westendorp Price Sensitivity Meter, the Gabor-Granger pricing model or some form of choice-based exercise (MaxDiff or Conjoint). All of these methods are well established and widely understood, but they were all designed for consumer markets and often we encounter situations in B2B contexts where these models are not sufficient. Below are a few examples of additional complications that may arise and how we can work around them.

Not All Customers Are Created Equal

The first example of how B2B markets differ from others is fairly obvious but can lead to serious miss-steps if not addressed.

We have a new product we want to bring to market. We are not sure what would be an appropriate price range for our new product as it is too different from existing solutions that are available, so we conduct a Van Westendorp Price Sensitivity Meter including the extension. We have designed our sample to be representative of the market.

Applying the standard approach to analyzing the results suggests an optimal price in the range of $12-15$ but digging deeper it becomes clear that going to market at this price would be a mistake.

A small segment of the sample shows very keen interest in the solution seeing large benefits in its novel features. Running the exercise for just this segment suggests a price range of $40-$50. Furthermore, although the segment is small, the businesses in the segments are not; each would likely purchase a large number of products each year at this higher price (as indicated by their answers to other questions in the survey).

Re-weighting the data to reflect the likely volumes of purchase each potential customer represents, and using the extension questions to estimate revenue generated at each price point, we can see that targeting this premium segment by aiming for a price in the $40-$50$ price range results in significantly higher expected revenue.

Perplexing Prices

In B2B settings, prices often have more than one component to them. A new support service may have a fixed monthly cost with a variable cost charged for each support call after the first 5 of the month, for example. How can we model this?

By adapting the Gabor Granger exercise we are able to generate a demand map of the price space.

This can in turn be used to produce a revenue index for the space and identify the price configurations which would result in the largest expected revenue.

Drop The Base Low

A client approached us with a potential new product that they wanted to test the appeal of and to help them understand how much they could potentially charge for it. They wanted to understand the value assigned to each functional benefit offered by the product as well as the overall willingness to pay for a solution containing a combination of these benefits.

To any experienced researcher this sounds like a classic candidate for a choice based conjoint study, but there is one problem: the number of potential customers is very limited and we estimate that the sample we can obtain is at most 40. This is pretty common in B2B markets, and it makes a conjoint study impracticable.

To generate the insights that the client required we conduct a Premium Extension exercise, mapping out the relative premiums buyers would be willing to pay for each benefit the new solution would introduce over their existing product, as well as what they would be willing to pay for something which combined multiple additional benefits.

The results are less statistically robust than a conjoint study but provide the same ability to assess the relative appeal of components and identify suitable price points for variously configured solutions.

To discuss how our tailored insights programs can help solve your specific business challenges, get in touch and one of the team will be happy to help.

The post 3 B2B Pricing Challenges and How to Overcome Them appeared first on B2B International.

What is Kotler’s Five Product Levels Model?

Kotler’s 5 Product Levels model is used to develop new products or services or improve existing products or services and ensure they not only meet but exceed customers’ expectations.

The model developed by Philip Kotler highlights five ways to add value to a product or service. Each additional level adds increased value to your product or service and helps to differentiate it from your competitors.

The five product levels are:

1. The core benefit – The most basic benefit the customer gets from the product or service. For example, when you buy payroll software, the core benefit is that employees will be paid on-time with the correct amount.

2. The basic product – The basic features associated with the product or service that enable it to meet the core benefit. Payroll software needs to ensure employees are paid on-time and with the correct amount every month.

3. The expected product – The set of attributes or features customers anticipate they will receive from buying the product or service. For example, buyers of payroll software might expect it to automatically calculate pay, leave, and pension deductions.

4. The augmented product – The features that add value to the product or service (often intangible). They set the product or service apart from the competition. Payroll software could enable employees to access their pay slips online and make changes to their pension contributions.

5. The potential product – The possible changes the product or service could go through in the future and the features which could be added to improve satisfaction or further differentiate from the competition. For example, a potential add-on to the payroll software could be a platform where employees can submit timesheets or request leave.

Further Reading

Using the Push-Pull Model to Successfully Bring New Products to Market

Read Blog

Use Cases For Kotler’s 5 Product Levels Model In B2B Research

Customer needs research – Kotler’s 5 Product Levels can be applied to customer needs research to help identify which elements of a product or service are considered table stakes and need to be included to meet basic customer needs versus which elements of a product or service add value for the customer and help to differentiate from the competition.

Product development research – When introducing new B2B products or services, Kotler’s 5 Product Levels can provide guidance when building the current product or service offering and thinking ahead to how the product or service could eventually evolve.

Value proposition research – Kotler’s 5 Product Levels can be included in Value Proposition research to ensure that the product or service offered meets and exceeds customer expectations. It can also be a useful tool to highlight which parts of the offering should be emphasized in communication about the product or service to the customer.

Further Reading

How to Meet the Emotional Needs of B2B Buyers

Read Blog

Complementary Frameworks to Kotler’s 5 Product Levels Model

Kotler’s 5 Product Levels Model can be combined with other popular frameworks to enhance customer needs research, product development research, and value proposition research.

KANO – A framework for analyzing which attributes of products or services are valued by customers. The framework focuses on the satisfaction of customers with an attribute and the degree to which the product or service delivers against what is expected.

Three Circles Framework – The framework consists of customer needs, company strengths and competitor strengths. Each of these areas interlink to reveal the points of parity in the market and the points of differentiation you or competitors may have. The Three Circles Framework helps to understand which customer needs are currently being met and by which companies and understand where a company currently sits in the market space against competitors.

Value Proposition Canvas – A framework to help ensure that a product or service is positioned around what the customer values and needs. The Value Proposition Canvas can be used when there is a need to refine an existing product or service offering or where a new offering is being developed from scratch.

SAVE Framework – An alternative to the market mix framework (4 Ps). While the 4 Ps focuses only on the product or service, the SAVE framework broadens the focus to include the needs of the customer. The framework focuses on; Solution, Access, Value and Education.

To discuss how our tailored insights programs can help solve your specific business challenges, get in touch and one of the team will be happy to help.

The post 3 Use Cases for Kotler’s Five Product Levels Framework in B2B Research appeared first on B2B International.

The push-pull model is a framework that is best used when organizations are looking to introduce a new product or solution to the market but are unsure of the enablers and barriers that customers see when thinking about switching solutions. The framework allows us to explore a variety of reasons why customers might want to stick with their current solution or move to use a new product or solution. Through its use, the push-pull model can inform organizations of what is going to enable or block a switch to the new solution, and hence can help to develop strategy to overcome any barriers to the use of the new solution or product.

Understanding the Elements of the Push-Pull Model

There are four different elements to the push-pull model. Two of these elements would encourage a switch to a new solution:

‘Push’: The ‘push’ element of the model is used to identify what would ‘push’ a customer from using their existing solution. In this box, we would include the problems that customers identify with their current solution.

‘Pull’: The ‘pull’ element of the model is used to demonstrate the key benefits of the new solution, that would encourage a switch from the existing solution. In this box, we could highlight where any of the benefits are specific to different customer groups.

Some of the details that sit within each box may overlap, for example, if a problem with the customer’s existing solution is that it is not sustainable, yet the new solution is sustainable, we might see sustainability as both a push from the existing solution, and a pull towards the new solution.

The other two elements of the model are used to highlight factors which would block the switch to a new solution:

‘Inertia’: This element of the model is used to demonstrate the threats which customers identify regarding switching to a new solution (i.e., that would block them from considering a switch). Inertia is often a core reason for continuing to use an existing solution, so we should identify the habits that customers are in in this box, too.

‘Anxiety’: In addition to customers being in the habit of using their existing solution, and the threat of moving away from this solution, there is also anxiety about the new solution that could block the switch. In this element of the model, we should highlight the worries that customers have about the new solution, that might prevent them from switching solution.

Further Reading

Assessing Market Attractiveness with the Directional Policy Matrix

Read Blog

Driving Action Using the Push-Pull Model

Once we have established all of the ‘push’, ‘pull’, ‘inertia’ and ‘anxiety’ elements, we can start to use the model to drive action, in order for customers to be more inclined to switch to the new solution. A good way to do this, is to action each box in the push-pull model, so that all bases are covered to encourage a switch to the new solution. An example of how this might look is below.

‘Push’: Communicate the benefits of the new solution which overcome pitfalls in the existing solution. More detailed ‘push’ recommendations might look like:

• Highlight features of the new solution which improve on sustainability performance
• Demonstrate how technical support is improved with the new solution

‘Pull’: Demonstrate the research that has helped to develop the new solution and exemplify the key benefits of the new solution, reflecting the reasons why customers may switch. More detailed ‘pull’ recommendations might look like:

• Outline the return on investment of the new solution, if rising costs are a push factor
• Invest in research to clearly demonstrate the advantages of the new solution

‘Inertia’: Offer support to customers, so that they can see why switching solutions is important. More detailed ‘inertia’ recommendations might look like:

• Develop an example roadmap for the future using the new solution, so that customers can clearly see the direct benefits of switching solutions
• Lobby government to influence change for the future

‘Anxiety’: Demonstrate features of the new solution which can overcome anxieties about switching. More detailed ‘anxiety’ recommendations might look like:

• Highlight research that has been done on the efficacy of the solution
• Demonstrate experience in the field and capabilities of support teams

To discuss how our tailored insights programs can help solve your specific business challenges, get in touch and one of the team will be happy to help.

The post Using the Push-Pull Model to Successfully Bring New Products to Market appeared first on B2B International.

Introducing The Kano Classification Model

It is fairly common when dealing with product development projects to attempt to in some way quantify the importance of certain features or attributes that the product may possess to the appeal of the product as a whole. This is obviously a valuable insight to have but sometimes this overlooks a fundamental difference in the role played by different attributes when it comes to selecting a suitable product. The Kano model attempts to sort features and attributes by these roles to give more context to these insights.

If you think back to a recent purchase you’ve made you will often start with a shortlist of key features or attributes you are looking for which must be present for the product to be considered. These are essential to a product being acceptable, but are not something that will excite the buyer. Examples might include the presence of basic functions or features like a car having 4 wheels or a printer being compatible with your computer. Under the Kano model these sorts of attributes are generally referred to as “Hygiene Factors” or “Threshold Attributes”.

Other features may not be required for a product to be acceptable but make the product more desirable when they are present. These might include things like two-tone paint on a sportscar or a “macro mode” function for your smartphone camera. These are referred to as “Delight Factors” or “Excitement Attributes”.

The third category of interest consists of the key measures by which the performance of a product is judged. This might include things like horsepower for a sports car or maximum lift load for a crane. These are referred to as “Performance Indicators” or “Performance Attributes”.

Some attributes may not show strong importance at all and my be seen as irrelevant to the appeal of the product. These are referred to as “Indifference Attributes”.

It has been observed that these roles can evolve over time, with the delight factors of today sometimes becoming the hygiene factors of tomorrow. An example of this is how the inclusion of a digital camera in a mobile phone has gone from a novelty and a delight factor when it was first introduced, to being a basic expected feature today.

It is important to note that these roles are tied to the needs and wants of the purchaser and so we can expect some segmentation in how this breaks down. A parent buying a car for the school run will have a different set of Hygiene factors, Performance Indicators and Delight Factors than someone buying a car for leisure and prestige.

The Kano Exercise

The traditional way to categorize attributes and features according to the Kano model is to conduct a Kano exercise. This involves asking the following two questions about each feature or attribute being tested:

1. How would you feel if the product did have the following property?

   • I like it
   • I expect it
   • I am neutral
   • I can tolerate it
   • I dislike it

2. How would you feel if the product did not have the following property?

   • I like it
   • I expect it
   • I am neutral
   • I can tolerate it
   • I dislike it

The intent here is to measure the range of possible emotional responses that varying functionality with respect to one aspect of performance can achieve.

Ideally we want to measure the reaction to finding out a product totally fails to fulfil this function and comparing it to their reaction to a product that maximally fulfils this function. This can be a little tricky.

The standard language used for the questions is often not up to the task and may need to be tweaked to make more sense in the context.

For each respondent the attribute is classified based on the pair of responses given.

A – Where responses range from “OK” to “Great” indicate a delight factor
M – Where responses range from “Terrible” to “OK” indicate a hygiene factor
P – Where responses range from “Terrible” to “Great” indicate a performance measure
I – If they don’t really care either way then we can conclude that it’s unimportant
R – Occasionally we will get something that actually hurts the product! The more you deliver, the less satisfied they are. This could be something like bringing “Clippy” back to Microsoft Office…..
Q – Certain response patterns don’t really make sense and can be used as a quality control during the data cleaning process.

This provides us with a classification for all the attributes/features we tested for each respondent. We can use this to identify what role each feature/attribute generally plays as well as to identify any prominent needs segments within the market. These insights are particularly useful when we are attempting to develop a range of products to address the market and want to understand what the basic model should include and if multiple premium extensions would unlock more of the market for us.

It is worth noting that the Kano exercise does not measure the relative importance of these factors. It is focused solely on the nature of the role played by each feature/attribute in selecting a product. If we want to understand the importance each of these has then we need to follow it up with something that measures importance (such as a MaxDiff exercise).

Kano Regression Modelling

Another way to employ the Kano Classification Model is to measure the interaction of delivery on various attributes on overall satisfaction with the product implicitly through regression modelling.

To conduct this analysis we need to have collected a large amount of satisfaction data for all the attributes we want to test along with the overall satisfaction of the respondent with the product.

We can then create a pair of linear regression models each focusing on a different subset of respondents.

1. The low-end model focusses just on respondents giving an overall satisfaction score of 1 to 8.

2. The high-end model focusses instead on all respondents giving an overall satisfaction score of 7 or more.

We can then identify which attributes are important drivers of overall satisfaction at the low-end and high-end of the satisfaction scale and use this to categorize the attributes according to the Kano Classification.

Some attributes may be strong drivers in both models but be more dominant in one than the other. This suggests they play dual role as a Performance Indicator and either a Delight Factor or Hygiene Factor (depending on which model they are stronger in).

Using Shapley Regression or Relative Importance Analysis, we can even plot the importance of each attribute in each model to get a visual expression of this classification.

This approach is a great way to add context to insights about the relative importance that these attributes have but only measures the typical role of each attribute across the sample, rather than for each respondent. As such it is less useful in identifying needs based segments. By quantifying the contribution of each attribute at either end of the satisfaction scale though it does allow us to track the evolution of the roles of these attributes over time and predict when features are transitioning into being hygiene factors (and therefore identifying where existing solutions which lack these features may cease to be suitable for the market).

It can be an excellent addition to a CX study aiming to help focus resources towards customer retention and advocacy. Hygiene factors can be targeted to prevent customers from leaving, while delight factors can be harnessed for messaging in order to effectively drive advocacy.

It is also worth remembering that this method requires relatively large bases to produce reliable results as we need a suitably large base for both the low-end and high-end models.

Parting Thoughts

Kano Classification is a useful tool in enriching the insights we can draw from satisfaction research and supporting product development efforts. It is particularly valuable when attempting to develop or evolve a product range designed to efficiently meet the needs of a segmented market. If you are planning some product development research, a Kano exercise may be a good step to consider including in order to generate more contextualized insight and when conducting CX research, Kano Regression may help provide a clearer picture of what is causing loss of customers or driving advocacy.

The post Using the Kano Classification Model to Quantify the Importance of Product Features and Attributes appeared first on B2B International.

As markets become more competitive and buyers demand even more from brands, we know your 2024 plans will need to work harder than ever to deliver experiences that differentiate your brand from the competition and keep pace with shifting buyer expectations.

We’ve identified 5 prerequisites for delivering stand-out, value-driven brand experiences, thanks to our work with hundreds of leading B2B brands to deliver strategic insights programs that drive business growth.

If you notice any critical gaps in your understanding, reach out to one of our team to discuss your 2024 research requirements.

1. The customer experience

Do you have a deep understanding of the personas you serve, the path-to-purchase, and what ultimately drives satisfaction and loyalty?

How insights can help: Drive customer centricity through a detailed understanding and measurement of the customer journey and experience.

Learn more about our customer research >

2. The brand experience

Are your marketing communications resonating with your audience and your brand promise addressing key value drivers?

How insights can help: Build brand equity through a detailed understanding and measurement of brand health, from awareness, to positioning, to experience.

Learn more about our brand research >

3. The content experience

Do you know how to cut through the noise and deliver content your customers desire?

How insights can help: Deliver an engaging message through unique insights, based on primary research, which deliver differentiated thought leadership reports and content.

Learn more about our thought leadership research >

4. The product experience:

Does your organization have a product roadmap with clear innovation opportunities for new and enhanced solutions?

How insights can help: Develop a successful and profitable offer through value proposition development, concept testing, and pricing optimization.

Learn more about our product research >

5. The go-to-market experience

Are you clear on the nature of the opportunity for your brand or offering and confident you have the optimal go-to-market plan?

How insights can help: Assess the opportunity through a robust and actionable segmentation of the market and a deep understanding and measurement of target customers’ behaviors, needs, attitudes, and preferences.

Learn more about our market opportunity research >

To learn more about what it takes to create competitive advantage and drive customer loyalty in B2B markets today, check out our Superpowers Index research.

To discuss how our tailored insights programs or end-to-end solutions covering insights, creative, and media can help solve your specific business challenges, get in touch and one of the team will be happy to help.

The post 5 Prerequisites for Delivering Stand-Out, Value-Driven Brand Experiences in 2024 appeared first on B2B International.

It looks like 2023 will be a year of recession across most major economies, with some predicting it could take as long as 2024 to see recovery. Many businesses will struggle in the year ahead, with painful choices needed to be made. But as history of previous recessions has shown us, businesses that continue to invest in their brand are most likely to see the strongest growth once the economic storm has passed. Insight will play a critical role for businesses looking to navigate the changing environment and to capitalize during the recovery period.

During recessionary times market research will continue to guide companies through key business challenges:

1. Remaining customer-centric

Businesses across industry verticals are likely to face challenges over the next 12-24 months which will disrupt their ways of working; demand may dip, supply chains may become disrupted, the pressure to do more with less may increase. It’s vital for B2B companies to get a solid understanding of the changing landscape their customers find themselves in and understand what they can do to be a supportive partner in these times.

The importance of customer centricity was also highlighted in our recent podcast episode with Cisco’s Tejal Patel, who said “however much technology moves on, understanding the customer and their needs is going to be the number one thing that every marketer needs to look at.” Customer experience (CX) research programs will ensure B2B brands can stay in tune with their customers’ evolving needs and expectations, providing the best guidance to shape strategies to deliver superpowered experiences through the recession and beyond.

Further Reading

The New Shape of Superpowered B2B Customer Experiences

Download Now

2. Keeping on top of evolving market opportunities

Recessionary periods often lead to disruption in certain markets, as buyers look for more efficient or agile solutions. The knock-on effect of the recession may also see economic pressures vary across geographies. During this time there will undoubtedly be opportunities for many B2B businesses to capitalize on and some businesses will look to develop revenue streams in new markets to offset the impact of contraction in the economy but identifying and assessing these is not always straightforward. Specialist market opportunities research can clarify the path ahead to support confident go-no-go decisions.

3. Developing compelling products and propositions

While the opportunity for product development or investment in a certain market may be clear, B2B brands will still need to develop a truly compelling offer that resonates with its target audience. In some cases, this will require developing a value proposition for a completely new audience, but in other cases the impact of the recession may have shifted existing customers’ needs and expectations and brands will need to adapt their offer to remain attractive to its core base. Continuing to consider what makes you special during these times will be vital for B2B brands to build propositions that will attract and retain customers. Product development and value proposition research will continue to be a go-to for B2B companies looking to keep on top of this during the recession.

Further Reading

The Value Proposition Canvas Framework Explained

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4. Building and maintaining a healthy brand

Investing in the brand during a recession is critical to ensure B2B companies are front and center in customers’ minds for whenever they are ready to spend, whether that’s during or post-recession. Businesses that fail to acknowledge this, see the recession as pure threat, and cut back on all brand building to save costs, face a very real risk of becoming forgotten about once the green shoots of recover appear.

Tracking brand health will remain important during the recession, particularly to keep an eye on how satisfied customers are, whether the brand is being associated with the attributes that matter and how well-known the brand is within the target audience. At the same time, it will be important for B2B companies to ensure they are hitting the right tone during the recession. Brand research can guide businesses to take actions to remain relevant and relatable to customers as their needs and expectations evolve.

Further Reading

3 Critical Steps to Drive Brand Growth Through Insights

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5. Building an authoritative reputation in the market

B2B customers will face a swathe of uncertainty and anxiety over the next year. They will be looking for partners who care about these concerns and who can offer new perspectives to help them through this time. Thought leadership will remain a powerful tool for B2B businesses to offer a relatable, authoritative point of view during the recession. Effective use of insight to drive impactful content, will help B2B brands link their understanding of customers’ evolving needs with a fresh perspective to keep audiences engaged and informed. We know from our own research that investing in this type of insight activity can go a long way to reinforcing one of the key B2B CX Superpower pillars of ‘understanding’ – ‘a brand that gets my organization’s needs’.

At B2B International we remain strong advocates of the power of insight to drive meaningful actions within B2B businesses. During times of great uncertainty, the benefits of such approaches may be needed more than ever. To discuss your business needs and objectives and determine how our research can help, reach out to one of our research experts.

The post How Market Research Can Help B2B Brands Tackle Key Business Challenges During a Recession appeared first on B2B International.

In today’s business environment, there is mounting pressure for B2B marketers to do more with less. The pace of business is fast, teams are lean, competition is fierce, and the need to remain innovative is higher than ever.

Yet, what many should remember is that innovation doesn’t necessarily mean creating “the next best thing”. Innovation is a continual process of improvement and seeking to better understand new and different ways of satisfying the needs of customers.

There is a lot that B2B marketers can borrow from consumer-oriented businesses to rev up their innovation efforts. One effective way is leveraging the principles of design thinking and applying it to product development / innovation initiatives.

The AMA defines the 5 steps in design thinking as:

1. Empathize – gain a deep understanding of your customers / end-users’ behaviors and needs
2. Define – clearly frame the problem to solve
3. Ideate – cross-functional brainstorming
4. Prototype – rapidly bringing ideas to life
5. Test – experimenting and capturing quick feedback from customers / end-users

In this article, we will look at each of the 5 steps in the design thinking process and how B2B organizations could apply them to their businesses – specifically for product development so that as new products are developed, they are desirable (customers want it), feasible (the company can do it), and viable (the business can scale it).

View The Interactive PDF >

Empathize – Understanding the Customer’s Needs

Design thinking is often associated with terms such as “human-centered design” or “user-centered design”. This underscores the clear link between the business and people – after all, businesses serve people.

The first step in the design thinking process is to bring a deep understanding of the customer or more importantly, the end-user, into the process. Oftentimes, B2B organizations rely on internal customer-facing functions such as the sales teams or customer service to act as the voice of the customer. While helpful, this provides a limited view of the true customer experience.

It is therefore crucial to capture the customer’s point of view in an unbiased way and to step into their shoes to better understand their goals, motivations, behaviors, challenges and unmet needs. Leveraging primary research such as ethnographies, focus groups, or in-depth interviews with customers and developing decision making eco-systems, buyer personas, and customer journey maps are excellent tools for building foundational knowledge about B2B customers.

Define – Identify the Problem to Solve and Develop a Clear Brief

Famous inventor, Charles Kettering, once said “A problem well-stated is half-solved.”. Truer words have not been spoken when it comes to innovation. To inspire creative ideas, there needs to be a clear problem to solve. By gathering customer insights from the empathy stage (and other resources) and looking for common trends or themes, teams may start to identify certain opportunity areas to plan to innovate around. It’s not uncommon for several opportunity areas or unmet needs to exist.

However, it’s important for organizations to prioritize which to attack first. This step could also help to build a pipeline of opportunities to explore over the near, mid, and long term. The output from the ‘Defining’ stage is typically a well-crafted brief with a strategic focus, clear objectives, and inspiration that can guide both design and research later in the process.

Ideate – Unleash Creativity and Generate Potential Solutions

Armed with a strong foundation of customer knowledge and a clear direction on what problem to solve, it’s time to bring together a cross-functional team to collaborate and generate ideas for solutions. The purpose of these sessions is to focus on the main problem to solve – per the brief coming out of the Defining stage – and to generate as many possible solutions as possible. During these collaborative brainstorming sessions, it’s critical to create an environment that encourages divergent thinking – where everything from mild to wild is acceptable. Once all ideas are on the table, the goal will be to begin converging on a few high potential ideas worth pursuing.

The converging process is often where the blue-sky thinking gets a dose of reality and constraints are applied. Using tools such as a SWOT, customer value proposition, or impact/feasibility frameworks can be helpful in prioritizing which opportunities to pursue first. By the end of the Ideation stage there should be several potential concepts (and alternatives) as well as hypothesis about benefits to further explore.

Prototype – Rapidly Bringing Ideas To Life

Quickly bringing new product concepts to life in a way that customers / end-users can engage and interact with is a critical component for how B2B organizations can leverage design thinking in their innovation process. This step is mostly led by the product design team who take inspiration from the ideation stage and think of ways that the company could feasibly bring a new product to market. Depending on the subject, prototypes could take the form of 3D printed models, renderings, concept statements, wireframes, etc.

The intent of the prototyping stage is to quickly design stimuli for testing that customers / end-users can understand, react to, and provide feedback on how it may / may not work for them or their organization. Often there are several concepts and alternatives developed that each represent a unique benefit. The purpose of this is to isolate variables and build upon what is working.

Early in the innovation process these conceptual prototypes don’t necessarily have to be perfect – a term that is often used in this space is Minimally Viable Product (MVP). That means if the prototype is at a high enough fidelity for the general idea to be understood, it should be good enough for testing. As the concepts move closer to commercialization, the need for higher fidelity prototypes increases (i.e., close to a final working product).

Test – Agile Feedback from Real Customers

The once conceptual ideas have been brought to life via prototyping and are now ready to be tested with customers / end-users. Although many associate product testing with quantitative benchmarking (which is appropriate at times), a qualitative approach can help product teams dive much deeper into the “why” and “how” of the feedback to truly understand how a potential product idea may be used in real world applications.

One common pitfall at this stage in the process is allowing customers to drive the innovation process. While customer feedback is extremely important, learnings need to be validated with business experts who understand both feasibility and strategy. This is especially true with upstream innovation (i.e., where product concepts are still in their infancy) and learnings are used as building blocks to continue informing the design process.

The key to the testing stage is to go in with a clear set of hypotheses and action standards / success criteria that can help inform go/no-go decisions for winnowing down the number of concept candidates to further pursue.

While there are 5 clear steps in the design thinking process, it is not always linear. In fact, the design and innovation process is meant to be agile and iterative, meaning teams might go back and forth between stages before moving forward (e.g., test, learn, ideate, prototype, test again) as new information may challenge ingoing hypotheses or lead to new ideas. The benefit of following this process is quite rewarding as innovation efforts are closely linked to customer needs and the design of products is strongly informed by customer feedback so products provide added-value, are differentiated, and commercially viable to produce.

B2B International along with its sister agencies across Merkle B2B are uniquely equipped to help clients unlock new innovation opportunities that contribute to an overall more valuable customer and brand experience.

References

https://www.ama.org/marketing-news/the-5-phases-of-design-thinking/

The post How Design Thinking Can Help Drive B2B Innovation appeared first on B2B International.

The past year has forced all of us to adapt to a new way of life, both personally and professionally. In 2020, the dentsu CMO survey explored how CMOs have reacted to the impact of the pandemic, and importantly, how they are helping their business to navigate the future.

This report offers a new perspective on the data from that survey from the perspective of B2B CMOs. Compiled by B2B specialists at Merkle (a dentsu company), it aims to identify how B2B CMOs have responded to the pandemic and how prepared they are to navigate the future. It examines the views of 908 B2B CMOs, covering 12 countries and a wide array of business sizes and sectors.

The report also takes a close look at the B2B CMOs that are at the “frontier” among their colleagues – those who lead the way and ensure their organizations are as prepared as possible for the future. The survey reveals what sets them apart, what strategies they employ, and the learnings that other B2B CMOs can apply to their businesses.

The report covers:

• The challenges B2B CMOs expect to face over the coming 12 months
• The strategies employed by B2B CMOs over the past year
• The role of the B2B CMO
• How the performance of B2B CMOs is measured
• Future marketing strategies being implemented by B2B CMOs
• What sets apart Frontier B2B CMOs
• The differences between pure B2B companies and companies that sell to both businesses and consumers (B2B+C)

The post New Horizons: B2B CMO Guide to Navigating Complexity appeared first on B2B International.