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.
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Source: Best Practices in Growth Strategy, Customer Segmentation, Market Segmentation PowerPoint Slides: Organic Growth Framework (OGF) Series: Phase 2 PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
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.
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