Customer-Centric Innovation – von Javier Gómez.
- Aligning suppliers offers with customer needs
Understanding and fulfilling customer needs is crucial in the B2B market. Mikko Mäntyneva’s article „Company Offers to Meet the Needs of Business-to-Business Customers: Strategies and Orientation“ highlights the importance of aligning supplier offers with customer needs through a well-defined customer strategy and orientation, thereby enhancing the supplier’s competitiveness.
Mäntyneva argues that companies must focus on their market by offering products that meet customer needs. This involves not only developing new products but also improving existing ones based on customer feedback. Research and development (R&D) play a vital role in this process, as active customer involvement can expedite time to market, enhance cash flow and mitigate risks associated with launching new products. The article emphasizes the integration of customer strategy and orientation as a key factor.
Customer strategy involves maintaining and growing valuable customer relationships and attracting new customers by aligning R&D efforts with the needs of existing customers. Customer orientation, on the other hand, entails understanding and responding to customer needs by incorporating their feedback into product development.
Mäntyneva’s study, which surveyed 292 key account and sales managers from Finnish companies, provides clear evidence of the positive effects of customer strategy and orientation on market offerings.
Quelle: Mikko Mäntyneva (March 2020). Company Offers to Meet the Needs of Business-to-Business Customers: Strategies and Orientation. Technology Innovation Management Review, Volume 10, Issue 3.
Conclusion
The results demonstrate that a customer-centered approach, where R&D activities are aligned with customer needs and market demands, not only boosts customer satisfaction but also drives overall business success. By prioritizing customer needs and incorporating their feedback, companies gain a significant advantage in product sales. This approach ensures that their offerings meet market demands, thereby increasing their chances of becoming market leaders. Consequently, these companies can develop a highly competitive value proposition, positioning themselves for sustained growth and success.
- Application of the Topic to Glas Trösch Rail
About Glass Trösch Rail:
Glas Trösch Rail in Ursenbach (CH) belongs to Glas Trösch Group and is a leading company in the railway sector, specialized in cabin glazing of rolling stock with over 40 years of experience. At Glas Trösch Rail, every single project is customer-oriented, with each solution being a project-specific collaboration with the customer. The customer is supported from the initial idea (first draft) until making the product feasible in serial production. In advance, it is essential that the R&D department has already completed the necessary developments to satisfy the customer’s needs.
Possible customer strategy implementation:
Market segmentation
To align with Mäntyneva’s recommendations, Glas Trösch Rail should start by segmenting the market based on specific needs and requirements. Below is an example of a possible segmentation:
- High-speed trains: This luxury market has the highest value but the smallest quantities. The primary focus is on complying with the tough requirements and standards. Price sensitivity is lower than in other segments.
- Locomotives & regional trains: This middle market has medium values and quantities. Compliance with high standards is essential. Price sensitivity increases due to competition from other glass manufacturers attracted by larger quantities.
- LRV (Light Railway Vehicles): This low-value market has huge volumes. The focus is on complying with middle standards. This market is highly price-sensitive due to increased competition attracted by lower requirements and large volumes.
This segmentation will allow adapting the R&D efforts more effectively, focusing on top customers who generate the most revenue and show the highest growth potential.
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Improvement of customer orientation
In order to improve the customer orientation, Glas Trösch Rail should involve customers directly in their R&D process, using their actual sales team composed of six highly qualified Key Account Managers. They should focus more on getting all the information that customers require on new projects, even before receiving the RFQ.
Last but not least, the quality team should have a strategy in place to monitor all updates or modifications to the most important railway standards. In case of any major changes, Glas Trösch R&D can start working on these requirements in good time.
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Monitoring market trends
Glas Trösch Rail must also continuously monitor trends in the railway market. They should develop strategies to anticipate these trends, ensuring to have solutions ready before customers (train manufactures) present their requirements. This could be done by involving railway experts under a collaboration contract to help Glas Trösch identify or even promote end customer needs, giving a huge advantage in the bidding stage. This proactive approach could help to stay ahead of the competition and meet future market demands effectively.
Conclusion:
By adopting to a more customer-focused strategy, Glas Trösch Rail should see a market improvement in customer satisfaction and loyalty. Proactive approaches, which have been evaluated within the framework of customer orientation and standards committees, guarantee that the products not only comply with the standard requirements, but also meet customer needs. It ultimately leads to the fact that Glas Trösch might increase their sales and strengthen their market position and competiveness in a market, which will become more competitive.
