165. Cool Digital Tools Aren’t A Profit-Growth Strategy (Part B)

2020 Companies, AmazonBusiness, Big Data, Core Renewal, Distribution Strategy, Index, LIPA, Service Value Innovation Guidelines, WayPoint Analytics

Two Digital-Selling-Tool Paths

  • Invest in better digital-selling tools for all customers to (hopefully) use. 
  • Visit your most net-profitable customers to identify pain-points that can be reduced by applying off-the-shelf, digital tools. These may be one-off, custom solutions. Or, the solution may work with modifications for other same niche-need big customers. 

Consider these two contrasting case studies. Which path is a focused, profitable-growth strategy?

Case One: An APP for All

Consumers are besieged with APP offers. So, a contractor-supply distributor creates an APP that does two things: placing orders via your mobile phone, and getting fast delivery (options) from an Uber-type delivery partner. Results were weak. Why? The CEO wasn’t sure (yet).

My Questions to the CEO:

#1. For upfront customer research. What criteria were used to identify and visit 3-5 accounts most apt to use the APP? Then, did you brainstorm with them about:

  • How valuable this APP might be and why specifically?
  • For what percent of job scenarios would the delivery option be most beneficial?
  • What extra fee would the contractor pay for different delivery response times? 
  • If the prospects were excited, how could the APP be further improved? 

*Remember to be open to serendipitous insights*

#2. Post-mortem questions about APP 1.0 to a broader group of visited accounts:

  • How did you hear, (if you did), about the APP and its intended benefits?
  • Why did you not use it?
  • Is there any value within this ideaspace that can be re-developed? 
  • If an APP 2.0 has more promise, what additional marketing/education will be needed for wider adoption?

The team had done negligible pre and post-APP launch market research. (Will APP 2.0 happen? Stay tuned to future blogs.)  

CASE TWO: An App For One, Mongo Customer

The CEO of another contractor-supply distributor called on a huge account to explore buying-process “friction” possibilities. The customer had a niche doing a few standard jobs in big-contract quantities. Each job needed a fixed kit of SKUs with occasional tweaks. The two honchos oversaw the co-creation of a custom APP with order buttons for the standard kits. The contractor CEO insisted that everyone use the APP. Sales to the customer doubled and both parties realized other economic benefits.  

Bottom Line: Find and co-create digital solutions with best customers first.  

*Second of several case study comparisons.