Market transition
A lower-market company with a strong value proposition received a growth capital injection, and required assistance in transitioning its offering from B2C to B2B.
Situation Assessed
While the Company had a very strong value proposition, it had limited experience in the corporate B2B market. The Company initially chose the B2C market as an entry point for its offerings and reached a pinnacle where cost of customer acquisition was impeding the financial model and posing further challenges for a strategic exit.
Challenges Encountered
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No business development experience of corporate accounts and sales team
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Long sales cycles for corporate customers
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Limited investment available for a new market segment
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The Company had no referenceable corporate customers
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Limited internal infrastructure for corporate customer support
Value Delivered
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Researched alternative distribution channels for indirect access to major corporate clients
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Formalized the value proposition for the B2B market
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Developed the competitive differentiation and positioning for the B2B market
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Secured board approval and investor support for a major market shift
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Developed the target customer base for initial market penetration
Outcomes Achieved
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Secured multiple channel partners who had strong corporate connections and existing clients
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Secured two of the top five corporate accounts in the targeted client customer base, as well as increased the corporate referral base
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Dramatically reduced cost of customer acquisition
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Successfully repositioned the company in the B2B market for long term prosperity
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Greatly enhanced the value proposition of the Company as it began formal discussions on exit strategies and potential acquirers