Strategy and ContextThe management of long tail customer is part of the overall CEM work and has close links to other work streams. Segmentation defines "Who" we sell to, Service levels provide "What" we sell and our Go to Market strategy defines "How" we serve customers. The goal is to provide the appropriate channel to market for each customer which is both effective and efficient, and delivers profitable growth. Managing long tail (small customers) through the best channel needs to be aligned to the GBU strategy and customer needs. Define Long Tail strategy The GTM/Long Tail strategy should be in line with the overall GROW Solvay ONE approach. A Growth GBU would redeploy resources released by long tail management to focus on lead generation and growing critical and key customers. Whereas an Optimize GBU would reduce cost to serve. The Solvay One omni channel methodology is deployed to help guide each GBU find the best fit channels to market per region for each customer. Overall Methodology - Conduct a diagnostic for the GBU/region of the relative profitability of each customer. Generally this takes the form of a “whale curve” illustrating the long tail of customers adding limited profit/margin.
- Using benchmarking tools and KPI’s determine the potential value of changing routes to market.
- Select the routes to market for each customer
- Using a decision tree with defined thresholds for margin
- Quantitative and qualitative criteria
- Exception rules
- Options can be field sales, inside sales, digital channel or pass to a selected distributor
- Finalize the to be model and value to be delivered
Implementation- Develop a high level and detailed implementation plan per region
- Determine which leading and lagging KPI’s will be used for tracking
- Set up governance and drum beat cadence
- Review the process and continuously improve
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