Competitive Assessment: How Do We Measure?

Strategic Intent:
To report on the highly competitive marketplace regarding brand equity and quality of service.

Client Profile/Situation:

  • A distributor of architectural and industrial raw material
  • Marketplace is highly competitive, customers buy from an array of distributors similar to client
  • Needed to develop a better understanding of the customers’ perception of business offerings
  • Needed a better understanding of the customers’ needs
  • Wanted to benchmark the company relative to its competitors

Key Issues and Barriers:

  • Client wanted to break into a relatively new market
  • Anecdotal evidence indicated client was priced above competitors
  • Client needed data on competitive marketplace to inform strategic planning
  • Key Implementation Components:
  • Hybrid approach—telephone and self-administered online data collection methodology

Primary Results:

  • Customer satisfaction was low for the client relative to competition, there was room for improvement
  • Client scored highest among competitors for brand equity: awareness, current usage, preference, most engaged and revenue share
  • Client scored lower on a number of key performance indicators relative to competitors

Key strategic results:

  • Marketplace needs raw materials quickly so stock availability is crucial to customer satisfaction
  • There is significant room for improvement with a significant percentage of customer vulnerable to customer drift.
  • Despite the high level of brand equity, customers are very sensitive to price changes, therefore client would need to tread lightly with pricing.
  • Client owned the largest share of revenue in the total marketplace, largely because of strong performance and satisfaction in the Western region.
  • Client was in danger of losing more share of revenue in Southwestern region if performance measures were not improved.

Conclusions:

  • Changes were made to areas of performance to improve satisfaction in the Southwestern region resulting in increased business in main markets.
  • Client now has a VoC program to monitor changes

What the client said:

Feedback Systems provided me a clear perspective to take action to grow our business.
– CEO