The capital goods industry has experienced accelerated growth and extensive change in the past decade, driven by market forces and trends including globalization, digitalization, automation, and alternative fuels. The Customer Experience (CX) dynamics of manufacturing have evolved as customers seek incremental value for their capital investment. In agriculture in particular, manufacturers continued to innovate agricultural equipment and technology to help farmers meet the demands of modern farming and ensure optimal performance and productivity.
The Client is a global leader in the manufacture and sale of agricultural, construction, and powertrain equipment. While they were focused on growing their business globally, they were also experiencing year-over-year sales declines across some key brands. They heard the voice of their customers demanding an evolved service model, but they did not know how to tactically improve customer centricity through their field and dealer network.
The Client sought to explore:
The Verde Group used its proprietary Revenue@Risk® methodology and worked closely with the Client to analyze the specific experiences that matter most to customer loyalty. The analysis is grounded in the Experience, Attitude, Behaviour (EAB) Consistency Model which recognizes that experiences with a brand are the core driver of customer attitudes and behaviours. Given that a brand cannot change attitudes, the analysis measures positive and negative experiences for a customer and quantifies which are most damaging to the Client.
For this analysis, Verde prioritized and quantified the customer experiences that had the greatest impact on driving Dealer loyalty given how critical the Dealer network was to the Client’s success.
The analysis was both quantitative and qualitative. Qualitative research was conducted with Client executives, Dealers, and customers to understand the current CX landscape and the problems customers were experiencing. The analysis resulted in an extensive inventory of both positive and negative experiences likely to influence customer market behaviours.
Revenue@Risk® analysis is a unique, proprietary analytic methodology that quantifies the financial impact of customer problems to answer these key business questions:
The qualitative phase was followed by a quantitative study with a broad base of the Clients’ nearly 1,500 customers whereby deep analysis quantified the damage to loyalty for both the Client’s brand and for its Dealer network. The analysis cut through the complexity of the customer experience by identifying which specific problems created the highest risk for dissatisfaction.
Verde facilitated detailed action planning workshops with the to prioritize solutions to address the most damaging problems (MDPs). The action planning process supported the Client in cutting through the complexity of CX by helping to bring strategic focus to the problems that have the greatest impact on loyalty. Through facilitated exercises, the Client determined 25 improvement initiatives.