The success of any service company depends on knowing what service business you are in (or you should be in), understanding the current and future sources of advantage in that service business, and capturing and maintaining an advantage on your current and future competitors.
Target market segmentation, Positioning and Pricing are the key elements which provide the framework which holds together an effective strategic service vision.
Target market segmentation
Target market segmentation is the first step of any service strategy. CBE brings in deep knowledge of service industries which provides answers to the following questions:
- What are the common characteristics of important market segments
- What dimensions should be used to segment the market? Demographic? Psychographic? Behavioral?
- How important are different segments?
- Which needs does each segment has?
- How well are these needs being catered for?
- In what manner?
- By whom?
Positioning is the second step of a successful service strategy. CBE service strategy insights can help service companies to answer these questions:
- How does the service concept propose to meet customer needs?
- How do competitors meet these needs?
- How is the proposed service different from the direct competition?
- How important are these differences?
- What makes a good service?
- Does the proposed service concept provides this?
- What efforts are required to bring customer expectations and service capabilities into alignment?
Pricing is the third step of a successful service strategy. CBE service strategy insights can help service companies to answer to these questions:
- Is the price level consistent with our target market and proposed service concept?
- How do we price different components of our service?
- How can we establish lock-in pricing strategies in our target market?