This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Organic Growth Framework [OGF] Series: Phase 2) is a 23-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Growth can be achieved through corporate marketing (i.e. organic growth) or M&A (i.e. inorganic growth). The traditional approach to growth focuses on product differentiation and then marketing this differentiation. However, research and experience has shown, the differentiated, superior product doesn't always win the customer.
The Organic Growth Framework (OGF) is an approach to organic growth that focuses on changing customer behavior, instead of differentiating products. The central idea of the OGF is that we can drive faster, more reliable sales growth by identifying and focusing on 1 or 2 high-yield customer behaviors. Through this approach, we can change the behavior of customers at critical places in their buying journey, thereby shifting them onto paths most favorable to our offering.
The Organic Growth Framework follows a 5-phase process.
1. Map the Customer Decision Journey Waterfall
2. Use Propensity-based Segmentation
3. Identify Points of Leakage and Leverage
4. Develop a Behavior Change Value Proposition (BCVP)
5. Invest Disproportionately and Sequentially
This presentation is part of a series on OGF and focuses on the second phase of the process. Topics discussed include the Customer Decision Journey, the Marketing Strategy Process, Strategic Objectives, Propensity-based Segmentation, among topics.
This deck also includes slide templates for you to use in your own business presentations.
Phase 2 of the Organic Growth Framework (OGF) delves into Propensity-based Segmentation, a critical step for identifying and targeting high-yield customer behaviors. This phase emphasizes the creation of a segmentation map, leveraging observable characteristics to pinpoint actionable customer segments. By focusing on propensity, we can align marketing strategies with behaviors that drive growth, ensuring resources are allocated efficiently. This approach not only identifies attractive segments, but also provides a competitive edge by utilizing proprietary segmentation methodologies. The deck includes detailed processes and templates to facilitate implementation in your organization.
This PPT slide outlines the second phase of a strategic framework focused on customer segmentation based on their propensity to engage in high-yield behaviors. The overview emphasizes the need to segment customers according to their willingness or resistance to change, which can vary significantly across the market. This variability suggests that resources should be concentrated on those segments most likely to adopt these high-yield behaviors.
The slide highlights a paradigm shift in segmentation methodology. Traditionally, segmentation has been product-centric, where the focus is on understanding what customers desire from a product and tailoring offerings to meet those needs. In contrast, the Organic Growth Framework (OGF) approach prioritizes understanding which behaviors are desired from the target segment. This involves creating a Customer Value Framework (CVF) and campaigns aimed at encouraging the target segment to engage in specific behaviors, such as visiting a website or reading reviews.
To enhance targetability, the slide notes the importance of defining segments based on observable characteristics that can be easily recognized by customer-facing teams. This approach not only optimizes resource allocation, but also ensures that marketing strategies are aligned with actual customer behaviors, leading to more effective engagement.
Overall, the content suggests a strategic pivot towards behavior-driven segmentation, which can lead to more sustainable growth by aligning business efforts with customer readiness to change. This insight is crucial for organizations looking to refine their market strategies and improve customer engagement.
This PPT slide outlines the second phase of the Organic Growth Framework, focusing on propensity-based segmentation mapping. This phase is critical for organizations looking to refine their market approach by identifying and prioritizing customer segments based on their likelihood to engage in high-yield behaviors.
The first step involves constructing and populating a segmentation frame. This requires designing various methods to arrange short-list variables, ensuring that the most insightful ones are selected. Each market cell must then be populated with estimates or data reflecting the propensity for high-yield behavior. This foundational work sets the stage for deeper analysis.
Next, the slide emphasizes identifying propensity-based segments. Here, market cells with similar propensities are grouped together, allowing for a more rational approach to defining customer segments. This grouping is essential for understanding the nuances of customer behavior and tailoring strategies accordingly.
The final step is prioritizing segments. This involves adding data on market size and growth potential, which helps in evaluating and ranking the segments. Prioritization is crucial for resource allocation and strategic focus, ensuring that efforts are directed toward the most promising opportunities.
Overall, this slide serves as a guide for organizations aiming to leverage data-driven insights for market segmentation. By following these outlined steps, companies can develop a clearer understanding of their customer base and make informed decisions that drive sustainable growth. The structured approach encourages a methodical examination of market dynamics, ultimately leading to more effective strategies.
This PPT slide outlines the benefits of a propensity-based segmentation approach, emphasizing 3 core advantages.
First, it highlights that propensity-based segments are both actionable and meaningful. Each segment is clearly identifiable, allowing for targeted strategies across various corporate functions. This clarity stems from the selection of observable customer characteristics, ensuring that all relevant teams can engage effectively with the segments.
Second, the slide notes that this segmentation directs focus toward the easiest sources of growth. It suggests that understanding these segments will become clearer with subsequent examples, indicating a structured approach to demonstrating the practical application of the segmentation. The insight gained not only helps identify attractive segments, but also aids in resource allocation, steering efforts away from less fruitful areas.
Lastly, the slide asserts that propensity-based segmentation is intrinsically proprietary. It points out that many organizations within a given sector often utilize similar segmentation schemes, leading to homogenized marketing and sales campaigns. By adopting a unique segmentation strategy, companies can gain a significant edge, as they can tailor their approaches based on distinctive customer behaviors rather than relying on generic methodologies that may lack depth.
Overall, the slide effectively communicates the strategic value of propensity-based segmentation, positioning it as a critical tool for organizations aiming to enhance their market engagement and drive sustainable growth. The insights provided can serve as a foundation for decision-making processes, making it a valuable resource for executives considering this approach.
This PPT slide outlines a structured three-step process for developing a propensity-based segmentation map, crucial for targeted marketing and strategic decision-making. The first step, "Identify Segmentation Variables," involves generating a starter list of potential segmentation variables. This is followed by screening these variables for their observability and actionability, ensuring that they can be effectively utilized in the segmentation process. The correlation of these variables with specific behavioral objectives is also determined, leading to a refined short list of segmentation variables.
The second step, "Construct and Populate Segmentation Frame," focuses on building a comprehensive framework that incorporates the selected segmentation variables. This framework serves as the foundation for analyzing customer segments, allowing for a more nuanced understanding of different market segments.
The final step, "Define the Segments," emphasizes the identification and prioritization of propensity-based segments. This involves analyzing the constructed framework to define distinct customer segments that can be targeted more effectively. The prioritization of these segments ensures that resources are allocated efficiently, maximizing the potential for growth.
Overall, this process is designed to enhance the effectiveness of segmentation efforts, moving beyond traditional methods to incorporate behavioral insights. The slide suggests that while the steps may resemble typical segmentation processes, the specific analyses and activities involved are tailored to yield more actionable insights. This approach is particularly relevant for organizations looking to refine their marketing strategies and improve customer engagement.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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