7 things to consider forDistributor Sell-In and Sell-Through
1. Sell-in Strategy
What tools will the manufacturer’s sales force need to encourage distributors to carry the product?
• Incentives• Education• Sales Training• Sales Support• Technical Support• Back-Office Support
Sell-In brochure
2. Incentives
How can the manufacturer minimize the risk?
• Discount on initial orders• Quantity discounts• Showroom display/stocking assistance• Buy-Back program
3. Educate the sales force
What is the framework for training the sales staff?
• In-person/group training• Train-the-trainer• Webinars (incentive to attend?)• Video• Metrics for measuring the information learned
4. Recommend sales strategies
What are the selling strategies? What needs to be accomplished to make a sale?
• Messaging and positioning• Demos• Product samples• Technical papers• Testimonials
5. Sales support
How will the manufacturer help the sales teams succeed?
• Sales Tools - ex: literature, video, micro-site, advertising• Showroom merchandising• Lead generation? What is the process for distributing
the leads?• Other ideas to support sales, ie, calculator tool – mobile
app
6. Technical/installation team support
How will the technical staff be supported?
• Training• Technical info – ex: CAD drawings• Help Line
7. Back office issues
How will the distributor incorporate this new product into their database?
• Part numbers• Ordering process• Transfer of assets – images, videos, specs, etc.• Return or Buy-back program• Most important – make sure your billing process aligns
with the distributor’s
7 things to consider forDistributor Sell-In and Sell-Through
Outcome Driven Innovation
An Intro To ODI & The Jobs To Be Done Framework
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OUTCOME DRIVEN INNOVATIONA fancy name for a surprisingly simple idea:
“people buy products and services to get jobs done. As people complete these jobs, they have certain measurable results or outcomes that they are attempting to achieve. These link a company's value creation (product development) activities to customer-defined metrics.”
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Traditional types of info gathered from customers:1. Solution2. Specifications3. Needs4. Benefits
FOOLING OURSELVES
Number of Product Developers who believed they were gathering the right data from customers for new product development
72%
OUTCOME DRIVEN INNOVATION
The problem with these data types is that they:1. Rely on trying to translate customer language2. Assume the customer has significant technical knowledge3. Think the customer already knows the solution – we just
need to figure out how to make it4. Are often really imprecise
Number of new product launches that fail to become profitable and ultimately are discontinued or withdrawn from the market
40%
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IS NOT :
OUTCOME DRIVEN INNOVATION
1. Stage - Gate2. Scrum3. Lean Product Development4. DFSS…
These are product development / management processes. They are designed to take ideas and manage them through the commercialization processes
ODI is what you do BEFORE you get to these tools…
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Myth 2Myth 1 Myth 3 Myth 4
Customer Don’t Know What They
Want
Customers Can’t Articulate Their
Needs
Customers Have Latent ( not
visible or known) Needs
Customer Requirements
Change Over Time
Innovation Myths:
OUTCOME DRIVEN INNOVATION
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Myth 1
Customer Don’t Know What They
Want
Innovation Myths:
Customer DO know what they want – but they don’t always (rarely) know how to
get it… that’s part of our job
OUTCOME DRIVEN INNOVATION
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Myth 2
Customer can’t articulate their
needs
Again, customers are often very good and telling us what they want. This goes to
understanding what they want… a drill or a hole
Innovation Myths:
OUTCOME DRIVEN INNOVATION
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Myth 3
Customers have latent (unknown or
invisible) needs
What customers want – the ultimate outcome – is usually quite apparent. But what is latent are the jobs that need to be
done to achieve that outcome
Innovation Myths:
OUTCOME DRIVEN INNOVATION
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Myth 4
Customer requirements
change over time
The desired outcomes, and the jobs to be done to achieve those outcomes don’t
change over time. What changes is how we get those jobs done and achieve those
outcomes.
Innovation Myths:
OUTCOME DRIVEN INNOVATION
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So, here we are. Rather than focusing initially on what product attributes a customer is looking for (faster, stronger, larger..etc) we should be focusing on what outcomes they value.
So what are these outcomes… Outcomes:• Are the fundamental metrics used by customers to measure success when
getting a job done• Are used by customers to assess the value of one product/service over another• Can be captured in markets where products and competitors do not yet
exist, e.g., white spaces, blue oceans, etc.• Are the key to discovering opportunities for core market growth and
disruptive innovation• Are integral to all downstream innovation tasks, e.g., identifying
opportunities, segmenting markets, evaluating ideas, etc.
OUTCOME DRIVEN INNOVATION
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WHAT DO CUSTOMERS WANT ?
ODI=
WHAT CUSTOMERS WANT
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WHAT DO CUSTOMERS WANT ?
You’ve All Probably
Seen These
Examples, But They
Bear Repeating
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THIS or THIS
WHAT DO CUSTOMERS WANT ?
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THIS or THIS
WHAT DO CUSTOMERS WANT ?
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THIS or THIS
WHAT DO CUSTOMERS WANT ?
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THIS or THIS
WHAT DO CUSTOMERS WANT ?
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A Hole Saved Memories Enjoyed Music A Healthy Garden
WHAT DO CUSTOMERS WANT ?
These are the jobs that need to get done. These are the jobs we need to figure out how to do better than anyone else
SAME JOB
SOLVED DIFFERENT WAYS
image source: intercom.ioblog
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WHY FOCUS ON THE JOB ?
“When you identify what people truly use your product to accomplish, you protect yourself from competition”
Clayton Christensen
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Jobs are “timeless”. The job doesn’t change (storing music in the example below), just the way in which the job is accomplished. Over time it’s the solution that get’s the job done BETTER that wins…
WHY FOCUS ON THE JOB ?
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What a drill does:1. Drills holes2. Tighten/Loosen things3. Spin things placed in the chuck
DRILL
WHY FOCUS ON THE JOB ?Let’s go back to one of our earlier examples:
Product Focus
What a drill is used for:1. Hanging pictures2. Fixing a chair3. Building a swing set4. Sharpening a knife5. Polishing a car6. Putting a toy together7. Fixing a car8. Fixing a bike9. ……10. ……
Job Focus
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JOBS ARE TIMELESS
The need to hang a picture, fix a chair, build something, and so on doesn’t change significantly over time.
YOUR COMPETITION IS NOT JUST OTHER DRILLS…IT’S ANYTHING THAT CAN GET THE JOB DONE…
WHY FOCUS ON THE JOB ?
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JTBD PROCESS
Build a job activity (or process) map
that outlines all the steps in the job
Construct a series of questions -
precise and measureable – to
help reveal desired outcomes
Create a measureable scale to have customers
rate the significance /importance of these activities
Use the scale to reveal those
outcomes that rank highest in
“importance” and “satisfaction”
We now have a ranked priority of unmet (important
but unsatisfied) outcomes that we can begin working
on
STEP 01 STEP 02 STEP 03 STEP 04 STEP 05
A step “0.1” could be to identify your focus market. For our purposes I am going to assume that we’ve already done that.
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Using an opportunity map, visualize those spots where underserved (important but unsatisfied) opportunities exist
STEP 4
JTBD PROCESS
STEP 5Use these underserved opportunities to feed into your product development process
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ACKNOWLEDGEMENTSStrategyn UK – Job Mapping graphics from April 2009 PresentationClayton Christensen – ODI theory, “The Innovators Dilemma”, “The Innovators Solution”
“What Customers Want” – Anthony Ulwick
“How To Know What Your Customers Really Want “- Pandith Jantakahalli presentation
“New Product Blueprinting”- Dan Adams