A transshipment port is a facility that allows for the transfer of cargo between different vessels. It serves as an important node along major global shipping routes. Goods and cargo – originating from multiple ports – can be consolidated and transferred onto larger container ships or bulk carriers for onward transportation to destination markets worldwide.
This transfer of cargo – known as transshipment – enables shipping lines to optimize their networks and vessel deployment. By aggregating shipments from various ports onto a single large vessel, transshipment ports help achieve economies of scale that reduce per-unit transportation costs. They act as vital consolidation and distribution hubs in global supply chains.
India’s Need for Transshipment
India’s heavy reliance on foreign transshipment hubs like Colombo and Singapore is costing its exporters and importers dearly. Each container that is transhipped through these ports incurs an additional expense of $80-100 per TEU. Given the size of India’s international trade– this translates to billions of dollars annually leaving the country as extra logistics costs.
Transshipment activity also allows for cargo consolidation onto very large container ships, which reduces the overall freight rates. However– without a capable transshipment port– Indian shippers have to rely on foreign hubs to access this economy of scale.
Depending so heavily on ports outside India makes the country vulnerable to geopolitical tensions in the regions where these hubs are located. Disruptions at transshipment ports can seriously impact Indian trade.
Earnings from transshipment business also mean greater revenue for port operators and local economies. Major hubs globally earn billions annually just through transshipment activities. Capturing this opportunity will support India’s port-led development and ‘Make in India’ vision.
Reliance on foreign ports also diminishes India’s bargaining power when negotiating transit terms. Developing self-sufficiency in transshipment infrastructure strengthens the country’s role and influence in global trade networks.
Benefits for Traders
Developing a capable transshipment port in India like Vizhinjam will directly benefit the country’s exporters and importers in several ways:
Lower logistics costs – By consolidating cargo onto large hub-and-spoke vessels at an Indian transshipment port, traders can access significant cost savings in freight rates. This will enhance the competitiveness of Indian goods in international markets.
Faster delivery times – With shorter deviation routes involving domestic transshipment instead of foreign hubs, cargo can reach its final destination quicker. Time savings translate to reduced inventory carrying costs and improved responsiveness.
Wider market access – Very large container ships that Indian ports currently cannot handle will call at a port like Vizhinjam. This opens up new direct connections to a greater number of international destinations from India.
Reliability – Dependence on a domestic transshipment facility mitigates risks of disruptions at foreign ports impacting Indian exports/imports due to issues like geopolitics, natural disasters etc.
Efficiency – Advanced cargo handling capabilities and world-class infrastructure at the transshipment port will boost productivity and throughput volumes for traders.
Single window services – A centralized transshipment hub provides ‘one stop shop’ convenience for– logistics, documentation, clearance and related requirements.
Why Vizhinjam is Strategically Advantageous?
Of the various locations proposed as potential transshipment hubs in India, the Vizhinjam site offers several strategic advantages that make it uniquely positioned to meet the country’s needs.
Proximity to International shipping lane – Vizhinjam is only 7 nautical miles from the vital East-West international transit route. This minimizes deviations for carrier vessels, resulting in significant fuel savings and quick turnarounds.
Natural deep draft – Its coastal waters provide a depth of 20 meters, allowing accommodation of the world’s largest container ships which is crucial for a transshipment hub. Other Indian ports require extensive dredging.
Hinterland potential – Situated in Kerala which has strong trade links, Vizhinjam will also be able to handle a portion of Southern India’s local cargo apart from transshipment. This provides a dual revenue stream.
Infrastructure readiness – The project has received all statutory clearances and is fully funded, with Phase I expected to be functional soon. This puts it ahead of other proposed sites still in planning stages.
Green credentials – Vizhinjam’s reliance on renewable energy aligns with India’s climate commitments. Its development also causes minimal environmental disturbance.
Impact on the Economy
Vizhinjam’s full development as India’s first transshipment hub is expected to deliver significant economic and social benefits:
Job creation – Construction and operations will generate thousands of direct and indirect jobs locally. Port-linked industries are also expected to emerge boosting employment.
Cheaper exports – Lower logistics costs and faster delivery times will enhance the competitiveness of Indian goods overseas– supporting export-led growth nationwide.
Increased trade capacity – The port’s scale will expand India’s ability to handle larger cargo volumes both for domestic trade as well as transshipment. This fuels greater economic activity.
Reduced dependency – By developing indigenous transshipment capability, India will lessen reliance on foreign ports that can be unreliable due to external factors. This strengthens trade resilience.
Sustainable development – As one of the world’s greenest ports using renewable energy, Vizhinjam aligns with India’s climate change commitments and promotes long-term sustainability.
Regional growth – The port is projected to emerge as a major economic hub in Kerala, attracting industries and supporting the state’s development ambitions. Revenue through taxes would be natural and a Port City is very likely to come up around the harbour.
Ruskin Felix Consulting performed Valuation Services for Merch Informer, which included Due Diligence, Industry Analysis, Financial Projections, and Cost Assessment. The valuation techniques used were Earnings Based Valuation and DCF Method (NPV Analysis), which relied on the company’s revenue and profitability data from its financial statements.
Merch Informer pioneered the Merch by Amazon space by offering research tools. It has a competitive edge in terms of cost-effectiveness and customer satisfaction, which attracted us to apply our expertise in valuing their growing company. We also assisted them with analyzing their competitors and devising strategies to expand their business in the upcoming years.
Merch by Amazon revolutionized the apparel industry a few years ago by allowing merchants to sell products directly to the consumer without ever having to worry about supply chain, manufacturing, and logistics. With royalty revenue from licensed merchandise totaling $14.5 billion in 2018 and growing at CAGR c.2.6%, Merch Informer is poised to capitalize on this market trend.
Our industry analysis, company assessment, and financial projections revealed that Merch Informer has several competitive edges, such as the ability to search for designs on social media and the provision of an in-house design platform with multiple third-party software connections, such as Google AdWords. These aspects create a highly customer-centric business model that is likely to experience substantial growth in the near future.
Looking forward, the company is committed to staying at the forefront of technological and design trends. Merch Informer continually strives to update its platform to meet the changing needs of their users. Merch Informer also plans to expand their business globally to cater to a broader set of customers, entrepreneurs, designers and businesses that are looking to tap into the ever-growing market of customised merchandise. RFC looks forward to shape the future of Merch by Amazon space and thrive its business in the global market.
Ruskin Felix Consulting (RFC) partnered with ASOS to devise a robust growth strategy for their fashion business, incorporating alternate channels of revenue and innovative business models gaining traction in the market. The comprehensive report prepared by RFC encompassed a meticulous assessment process, starting with market analysis, opportunity identification, and viability assessment to select the most promising options for ASOS.
Through a detailed market assessment and opportunity analysis for ASOS, RFC identified the clothes rental market as a high-potential segment, boasting an impressive ROI of 31% and strong validation in the industry. As a result, the growth strategy primarily focused on the successful implementation of the Rental and Reselling Model, with plans to integrate the Subscription Model in subsequent phases.
To ensure a successful market entry and manage the inherent risks and marketing costs, RFC designed a phased implementation plan for ASOS. The CAPEX allocation was earmarked for branding, marketing, and campaigning, with the initial focus directed towards Rental and Reselling Model. The subsequent phases involved Prototyping & Testing, Market Presence & Penetration, Market Growth, and Development & Diversification.
An integral part of the growth strategy entailed leveraging influencer marketing to facilitate the launch of the models. RFC recommended initiating influencer-based marketing campaigns, encouraging influencers to resell their used clothes on the apps. The large following and subscribers of these influencers would attract customers to the platform, driving the growth of the rental and reselling segments.
The project timeline, spanning over five years, delineated the phased approach to ASOS’s market entry and expansion. Year 1 focused on testing and launching Rentals & Reselling, followed by the launch of the Subscription Model and expansion of other business units in Year 2. Year 3 involved further expansion of existing businesses and testing the Recycling Model, while Year 4 concentrated on market share expansion and growth. By Year 5, ASOS aimed to establish itself as a prominent player in the Rental, Reused, and Recyclable market, with an internal subscription model enhancing customer retention.
With RFC’s growth strategy consulting services, ASOS was equipped with a well-defined roadmap, market-tested models, and impactful marketing initiatives, positioning them for success in the evolving fashion industry. RFC’s analytical prowess and strategic recommendations paved the way for ASOS to become a frontrunner in the fashion domain, catering to customer preferences for sustainable, reusable, and innovative fashion experiences.
Enterprises in the present hypercompetitive market continuously strive to expand their customer base and boost their earnings. A typical strategic partnership agreement would incur the beginning of a strategic business partnership.
One of the most effective methodologies to accomplish these goals is by establishing strategic partnerships with other businesses which can provide numerous benefits for firms of all scales ranging from increased visibility and access to untapped markets to cost reduction and enhanced efficiencies.
This article delves into the diverse advantages of strategic partnerships for business expansion and explains how enterprises can leverage these partnerships to achieve sustained prosperity.
Strategic alliances have gained significant momentum in recent times, as enterprises strive to discover novel means of amplifying their business and extending their reach.
These alliances are established between two or more businesses that have shared objectives and interests and collaborate to achieve mutual gains. Business relationships can grow exponentially when they are in a joint venture.
Strategic partnerships can manifest in myriad forms, from joint endeavors and associations to distribution contracts and licensing agreements. A strategic partner will display numerous types of strategic partnership formats and how they will benefit from them.
Irrespective of the modality they assume, strategic alliances can offer a range of advantages for enterprises.
WHAT IS A STRATEGIC PARTNERSHIP?
A strategic partnership refers to a collaborative arrangement between two or more businesses that aim to attain mutual advantages.
Two or more companies work together to achieve business goals in a strategic partnership. It is a legal arrangement where partners combine resources and expertise to gain market share, new consumers, or cost savings.
Joint ventures, supply chain partnerships, and R&D collaborations are all strategic partnerships. Successful ones involve forethought, open communication, and trust.
Such partnerships are usually established between businesses that share similar objectives and interests and cooperate to realize their objectives.
Strategic partnerships can adopt diverse structures, ranging from joint ventures and collaborations to distribution contracts and licensing agreements.
A successful strategic partnership entails both parties being transparent about their objectives and having a common understanding of the benefits that the partnership can offer.
BENEFITS OF STRATEGIC PARTNERSHIPS
Increased market exposure and access to new customers
One of the foremost perks of establishing a strategic alliance is augmented market visibility and admittance to fresh patrons.
By collaborating with another enterprise, you can access their customer base and gain traction in novel markets that may have eluded your reach earlier.
This can be remarkably advantageous for enterprises that are seeking to broaden their customer base or extend their reach to nascent regions or markets.
Access to new markets and distribution channels
Aside from enhanced market visibility and access to new patrons, strategic partnerships can also facilitate access to fresh markets and distribution conduits.
For example- if you manufacture a specific product, you could potentially form a strategic alliance with a distributor or retailer who can aid you in reaching untapped markets or extending your distribution channels.
This can be particularly advantageous for enterprises that aspire to enter new markets or augment their presence in existing ones.
Improved product or service offerings
Another advantage of forging a strategic alliance is heightened product or service quality. Forming a strategic marketing partnership will bring many supply chain partnerships to the table.
By teaming up with another enterprise, you can harness their know-how and resources to upgrade your existing products or services, or to fashion novel ones.
This can be notably beneficial for businesses that are seeking to pioneer or maintain an edge over the competition.
Increased cost savings and operational efficiencies
By sharing resources and expertise businesses can reduce their costs and improve their efficiencies. For e.g., if two businesses are both purchasing the same raw materials, they may be able to negotiate a better price by pooling their purchasing power.
Access to new technologies and intellectual property
Strategic partnerships offer a valuable advantage in accessing cutting-edge technologies and intellectual property.
By joining forces with another enterprise, one can potentially acquire innovative technologies or intellectual property that may have been beyond reach if operating solely.
This advantage is especially valuable for firms seeking to remain ahead of the competition or disrupt their industry through ground-breaking innovation.
Mitigating risk and sharing expertise
Strategic collaborations can additionally facilitate enterprises in managing risk and exchanging expertise.
By joining forces with another enterprise, one can share their insights and expertise while also benefiting from their partner’s knowledge.
This can enable businesses to diminish their exposure to risk and make well-informed decisions, leveraging the collective intelligence and experience of their partner.
Building a strategic partner and reputation
Another advantage of strategic partnerships is the opportunity for businesses to enhance their brand’s credibility and reputation.
By collaborating with an established and highly regarded enterprise, businesses can leverage their partner’s reputation and credibility to enhance their own.
This can lead to an improved brand reputation and credibility, positioning the business as trustworthy and reliable.
Arguably, the most notable advantage of creating a strategic partnership is the potential for augmented revenue and profitability.
By harnessing the capabilities and resources of one’s partner, enterprises can bolster their sales and revenue and heighten their profitability.
This can be particularly advantageous for businesses facing challenges in growing or sustaining profitability on their own.
HOW TO FORM A STRATEGIC PARTNERSHIP?
Establishing a strategic partnership is a multifaceted undertaking that mandates meticulous planning and execution. The foremost step is to pinpoint prospective partners that share similar objectives and interests.
After identifying potential collaborators, it is essential to conduct comprehensive due diligence to assess their suitability for the proposed partnership. This may entail researching their corporate background, financials, and reputation, as well as arranging meetings with pertinent stakeholders to deliberate on the proposed collaboration.
Upon identifying a potential partner and completing the due diligence process the next step is to initiate negotiations to establish the terms of the partnership that may encompass describing the extent of the collaboration, determining the capabilities and know-how that each party will contribute and defining the advantages that each party will derive.
After settling on the terms of the partnership, it is critical to record the agreement in a written contract which should be carefully examined by legal experts.
COMMON CHALLENGES AND HOW TO OVERCOME THEM?
Creating a strategic partnership can be a daunting task with various obstacles that businesses may encounter.
These challenges could stem from disparities in culture, values, or objectives as well as disagreements concerning the scope or terms of the partnership.
To overcome these challenges it is crucial to establish transparent communication channels and work alongside your partner to address any challenges that may arise.
Here are some challenges you may face and some tips for addressing them:
Misaligned goals and objectives
When businesses form a strategic partnership, aligning goals and objectives can be a major challenge. This can result in conflicts and hinder progress towards shared objectives.
To overcome this challenge it is important to clearly define and communicate goals and objectives from the beginning of the partnership.
Regular communication and check-ins can also help ensure that both businesses are aligned and working towards the same objectives.
Differences in company culture
Another challenge that businesses may face is differences in company culture. This can lead to misunderstandings and a lack of collaboration.
To overcome this challenge, it is important to understand each other’s values and work styles and to find common ground.
It may also be helpful to establish a code of conduct or set of shared values to guide the partnership.
Unequal contribution and benefit
One of the common challenges in strategic partnerships is ensuring that both businesses contribute equally and receive fair benefits from the partnership.
To overcome this challenge, it’s crucial to establish clear roles and responsibilities and to maintain open communication about expectations and outcomes.
Regular evaluation of the partnership can also help ensure that both businesses are benefiting and contributing equally over time.
Lack of trust
Building trust between businesses is essential for a successful partnership. However, it can be difficult to establish trust when businesses are just starting to work together.
To overcome this challenge it is important to be transparent and honest in communication, follow through on commitments and establish clear processes for conflict resolution.
Regular communication and updates can also help build trust and strengthen the partnership over time.
Measuring the success of a strategic partnership
Some significant measures that businesses may use to evaluate the effectiveness of a partnership include enhanced revenue, improved operational efficiencies and higher levels of customer satisfaction.
It is critical to establish clear goals and objectives for the partnership and to consistently review and evaluate its progress to guarantee that these objectives are being met.
Building strategic partnerships with prospective partners
One common challenge that companies face is building strategic partnerships with prospective partners.
A supply chain partnership can help to overcome this challenge, where one company works closely with a strategic partner to find and develop the right skills needed for success.
By building strategic partnerships, companies can better position themselves in the market, share resources, and develop a competitive edge.
However, finding the right strategic partners can be difficult, so it’s important to identify partners with complementary skills and goals, and to nurture those relationships over time to ensure long-term success.
REAL-WORLD EXAMPLES OF SUCCESSFUL STRATEGIC PARTNERS
There are many examples of successful strategic partnerships that businesses can look to for inspiration. One example is the partnership between Nike and Apple which resulted in the development of the Nike+ running app and other fitness-related products.
The Nike+ running app allowed users to track their runs and share their progress with others which helped to establish Nike as a leader in the fitness technology space.
The partnership between Nike and Apple is a great example of how strategic partnerships can lead to innovative products and increased market share for both businesses.
Another example is the partnership between Starbucks and Spotify which allows Starbucks customers to access exclusive music content through the Starbucks mobile app.
CONCLUSION
To summarize, strategic partnerships can offer many advantages to businesses such as access to new markets, shared resources and expertise, increased revenue and profitability.
However, forming a successful partnership requires careful planning, clear communication and addressing any challenges that may arise.
By establishing mutually beneficial partnerships, businesses can achieve long-term growth and success.
Our team at Ruskin Felix Consulting help clients generate long-term value for all stakeholders. We help clients transform, grow and operate while fostering trust through assurance with our services and solutions. We also provide consulting services with respect to strategic partnerships for organizations’ growth. Please feel free to contact us at contact@ruskinfelix.com.
Operations is another leafy offshoot of management consulting and bear strong similarities to strategy. The key difference is the intensive focus operations bring to a client’s performance at specific points on the value chain. Operations consultants use the same problem-solving methodology as their counterparts in strategy but direct it toward different, more functional, and explicit areas of the client’s business. A crucial bridge between strategy and implementation, operations consulting identifies how a specific target can be achieved and provides clients with a detailed roadmap for change.
Operations executives live on the frontline, managing industry change, disruption, challenges, and opportunities. They work closely with operations consultants to solve different organizational and efficiency challenges. Clients expect a blueprint for more effective internal operating models, management systems, and functional business processes, that are ripe for implementation.
ROLE OF OPERATIONS CONSULTANTS
Operations consultants provide specific solutions to how a particular challenge can be met. They employ metrics, advanced research, and problem-solving acumen to optimize their clients’ business processes. Designing cost-saving solutions in one location, maximizing profitability in another, reducing bottlenecks, revamping the procurement process, and streamlining logistics, are just some of the broad ranges of missions operations consultants excel at.
Each cog in the corporate or organizational machine must be operationally sound if the client’s targets are to be met. Operational consultants, therefore find themselves busily engaged at every stage of the value chain, engineering business model transformations across functional dimensions. Unlike strategy consultants, they are more likely to get their hands dirty in the day-to-day running of a functional area, such as sales, but stop short of full-scale implementation.
WHAT IS OPERATIONS CONSULTING?
Definition
Operations consulting is the process of assisting various types of businesses to assess the current status of internal procedures and strategies and enhance the overall operation of the company. While operations consulting is often thought to focus on manufacturing plants or production facilities, the scope of operations consulting is broader than that. Service-based businesses rather than product-based can benefit from operations consulting.
Characteristics
A key characteristic of operations consulting is that, across the board, it is more resilient to economic conditions than other advisory segments. Consulting demand in strategy consulting is, for instance, strongly linked to growth strategies, while M&A Advisory / Corporate Finance leans heavily on a buoyant economy and acquisition appetite and IT Consulting is, to an extent, reliant on economic conditions that shape capital investment budgets.
In contrast, operations management can be used to improve company performance under favorable as well as unfavorable market conditions, either enabling revenue growth plans or supporting downsizing and efficiency agendas.
Types
Organizational Operations focus on improving the performance of all aspects that support the organization’s structure, including organization design, governance (across functions and departments), roles and responsibilities, and employee performance. Typical activities relate either to the implementation of organizational strategies, such as workforce optimization or the redesign of employee roles or are prompted by an event or crisis, such as a merger or a transition as part of a broader corporate restructuring effort.
From a functional perspective, operations consulting aims at boosting the processes, ways of working, and underlying systems across a broad range of areas, of which Sales & Marketing, Supply Chain, Sourcing & Procurement, Finance, and Research & Development are the largest areas in terms of size. Sales look into how sales operations can be improved, including boosting channel management, professionalizing the level of customer support (i.e. from call centers to specialized helpdesks), and advancing engagement with clients, commonly referred to as customer relationship management (CRM).
Other areas that fall under Sales include the optimization of account & promotion management, Sales & Operations Planning (S&OP), and improving workforce effectiveness. Marketing encompasses, among others, the fields of customer & market research, marketing intelligence, product design & engineering, category management, and customer experience & loyalty.
BENEFITS OF OPERATIONS CONSULTING
Time-Savings
Any form of outsourcing has timesaving at its core. Managers, employees, and business owners may not have the time or inclination to work out the best operational way forwards. Even if they have the right know-how, they may not have the time to think about how to make it happen and then train the team for the adjustment. That’s where a consultant steps in.
Having a consultant helps restore everyone else’s focus on their primary role. Everyone gets back to work on what they do best, while the consultant sets about improving the overall situation. Sure, it isn’t free (or cheap), but consultation means improvements occur while business continues unimpeded. Those adjustments can have huge impacts, which ultimately result in the benefits outweighing the costs.
Cost reduction and efficiency gains
Worthwhile reductions go beyond one-time cost-cutting endeavors. Operations consultants will find easy ways to save money (such as with labor and materials) and make the necessary changes. However, these won’t solve significant financial problems.
It’s the consultant’s job to go one step further to figure out how to save money long-term. How they do it will depend on your specific situation. However, you can guarantee it will be at the forefront of their mind.
Consultation can lead to significant cost-savings in business operations. Additionally, consultants save you money in a variety of ways. There’s no need to hire a new staff member to do the work.
Swifter Product Development Cycle
Businesses are built upon their products and/or services. Frequently, an operational consultant will work to shorten the time it takes to get it to market. Development processes will be analyzed, tweaked, fine-tuned, or completely overhauled. These improvements will speed up the development cycle, indicating that money will be made at a quick pace. Be quick on adapting to changes in the marketplace and focus on closing leads faster.
Explore New Markets
Consultants can harness their skills in assessing whether or not your organization will be a success with the current market trends and also forecast what skills need to be updated to stay in the competition. When one tries to expand their established business or inflate into other industries, they can think about discussing things with a consultant.
In the blink of an eye, these consultants can quantify what are the benefits of the service you’re going to provide and what issues you might face.
They can showcase their acumen and show what your business is actually lacking. Working in coordination with IT advisors who are not only experienced but also well-trained. They are trained in structuring and operating business systems while working at affordable costs. A small business consultant is the perfect business idea for those interested in helping other entrepreneurs.
Consultants can draw on their expertise to offer solutions to longstanding problems. Their insight and perspective will highlight the weaknesses in your systems. Their knowledge should help rectify or at least improve the situation.
CHALLENGES IN OPERATIONS CONSULTING
Changing market conditions
Unpredictability has been a challenge for management consulting firms for many years now. The consulting marketplace is evolving quickly from one that relied primarily on interpersonal contact to develop new business (think networking or personal referrals) to a wide-open online playing field. Increasingly, that is where the game is played, and buyers are selecting the winners.
But there is more feeding the market frenzy than business development changes. The whole landscape is rapidly evolving, too — mergers and acquisitions are happening at a record pace, and new well-funded firms with different business models pop up with unnerving frequency. This churning marketplace is here to stay, and the most successful firms will learn to adapt to the uncertainty.
Cybersecurity
Consulting firms handle an enormous volume of confidential client information. This ranges from strategic information (used for strategic engagements, or mergers & acquisitions) to commercial (sales & marketing information for pricing engagements) and personal data (employee data as part of the reorganization and cost-cutting exercises). Such high-value information can be very damaging if it falls into the wrong hands. That makes professional service firms obvious targets for hackers, and data breaches, therefore, pose a particularly serious threat to consultancies.
Project complexity
Consulting firms are facing an increasingly complex macro macro-environment in which they must continue to provide the best advice. The global nature of the industry adds to the problem, as firms deliver more projects overseas, in many cases also working with subcontractors, partner companies, and/or independents. Delivering a project itself is not the issue – the challenge is doing so faster, more efficiently and to tighter budgets, while continuing to satisfy customer needs.
Complexity is also rising because clients are gaining better insight into their projects and demanding more control. The evolution of mobile technology has, for instance, caused a seismic shift in the sector, enabling stakeholders to gain instant access to project information on the go. It presents project managers with the challenge of staying on top of their projects within a more dynamic data environment.
Client expectations and satisfaction
Corporate buyers of professional services have become more demanding, pushing back against concepts such as billable hours, and requiring fixed fees and greater transparency on costs. In an increasingly agile environment, intensified by rapid digital innovation, clients now expect more value, a higher quality of work, and faster delivery of solutions and services.
At the same time, clients are also asking for more transparency and accountability in the work delivered. This particular shift in behavior stems from the financial crisis – when companies were forced to drastically cut down on their external consulting spend – since then, they have maintained a high level of scrutiny. Clients are monitoring the value provided by consultants with greater interest than ever before.
CONCLUSION
This field has created a significant influence on businesses of all sizes and industries. Consultants display their skills and experience so as to show why they’re the best at what they do. They help companies improve their processes, increase efficiency, reduce costs and enhance overall performance.
After careful analysis, strategic planning and implementation, operations consultants address the areas requiring improvement and help industries optimize their operations for long-term victory.
They also provide organizations with the tools and insights necessary to stay competitive in an ever-changing market whilst helping them to get closer to their goals and objectives.
Analysts can discover insights, conclude, and aid in decision-making by examining, cleaning, transforming, and modeling data. This field constitutes a broad and multifaceted field that encompasses a wide range of techniques known by many different names and is used in many different areas of business, science, and the social sciences.
Data analysis is increasingly important for business’s businesses as they seek to make decisions based on empirical evidence. In contrast to data mining, which focuses on statistical modeling and knowledge discovery for predictive rather than merely descriptive purposes, corporate intelligence encompasses such an analysis that relies heavily on aggregation while primarily focusing on business information.
Today, more than ever, businesses are using internal and external data to inform strategic planning, business, and problem-solving. The ability to collect and manipulate large amounts of data in new ways is made possible by business intelligence and big data tools. These insights can help businesses quickly respond to changing market conditions and new opportunities.
OVERVIEW OF THE ARTICLE
What we mean by “data-driven decision-making” is the practice of using your company’s KPIs to collect and analyze data to conclusions. This strategy is fundamental to any viable business plan of the present day. In this article, we’ll discuss the benefits of data-driven decision-making and offer suggestions for incorporating it into your daily operations at work.
When faced with a challenging choice at work, it can be hard to know what to do. Having faith in your decisions may increase if you listen to your gut, but will your team benefit? Achieving success in business hinges on making educated decisions, and doing so requires access to reliable information.
Reasons like competitive advantage and bottom-line growth are elevating data-driven decision-making to a higher priority in today’s business strategy. The benefits of data-driven decision-making are outlined, and suggestions are provided for introducing such approaches in the business world.
EXPLANATION OF DATA ANALYTICS
Data analytics is a method that uses computational methods to gain an understanding of raw data. To draw conclusions and identify patterns, these systems must first transform, organize, and model the data.
The term “data analytics” is often used to refer to the analysis of large volumes of data and/or high-velocity data, which pose unique computational and data-handling challenges, but there are simpler applications in the field as well. Professional data analysts have extensive education and training to enable them to sift through massive datasets in search of meaningful patterns.
Spending on data analytics has been shown to improve revenue, efficiency, marketing, and customer service. In addition, analytics allows companies to respond quickly to emerging market trends, giving them a business over competitors. However, the ultimate goal of data analytics is to boost a company’s bottom line. Depending on the use case, analysis data could be comprised of preexisting records or newly processed data for real-time analysis. In addition, it can come from any number of internal or external data sources.
Data analytics (DA) is a method used to extract meaningful insights and discover recurring patterns from massive datasets. Data analytics increasingly rely on high-end hardware and software tools. To make more educated business decisions, data analytics tools and methods are widely used in the commercial sector.
Business intelligence (BI) and reporting are two of the most elementary forms of data analytics, but the term “data analytics” is often used to refer to a much broader set of methods, including OLAP and other forms of advanced analytics. Because of this similarity, it can be compared to business analytics, another catch-all term for techniques of data analysis. The latter is more general and is used in the business world, while data analytics is more theoretical. This inclusive definition is not shared by all, however. Advanced forms of analytics, which set BI apart, are sometimes referred to as “data analytics.”
IMPORTANCE OF DATA ANALYTICS IN BUSINESS DECISION-MAKING
Many reasons using data to make decisions is a pursuit every modern business should place at the heart of their culture – and we’re going to explore the main points of importance.
The value of data in decision-making is based on its consistency and continuous improvement. Insights across a company’s many functions, processes, and departments can be pinpointed with the help of data. Making consistent, well-considered decisions that lead to measurable benchmarks of improvement and expansion is the key to long-term success in today’s cutthroat digital age.
Knowledge & innovation
The value of data in decision-making is based on its consistency and continuous improvement. Insights across a company’s many functions, processes, and departments can be pinpointed with the help of data. Making consistent, well-considered decisions that lead to measurable benchmarks of improvement and expansion is the key to long-term success in today’s cutthroat digital age. The value of data in decision-making is based on its consistency and continuous improvement. Insights across a company’s many functions, processes, and departments can be pinpointed with the help of data. Making consistent, well-considered decisions that lead to measurable benchmarks of improvement and expansion is the key to long-term success in today’s cutthroat digital age.
Data-driven decision-making can lead to the discovery of novel and exciting business opportunities. By analyzing easily accessible visual data, business leaders can get a bird’s-eye view of their company’s inner workings and make a series of educated decisions that will promote the company’s expansion and success. With your sharpened discernment, you’ll be able to identify opportunities for personal growth, professional networking, and the development of game-changing ideas that will set you apart from the pack.
Better communication
The more you approach your work with a mindset of data-driven decision management, the more effective a leader you will become, and the more your team will benefit from your guidance. In any insight-driven initiative, whether it be data-driven finance, a data-driven sales strategy, or something else entirely, working with effective KPIs and visualizations will enhance communication throughout.
ANALYTICS IN BUSINESS DECISION-MAKING
Definition of Data-Driven Decision Making
Data-driven decision-making (DDDM) refers to the practice of making important business decisions in light of empirical evidence, such as numerical data, metrics, and other quantifiable information, to better achieve one’s stated goals, objectives, and other initiatives.
When a company recognizes the business of its data, it empowers employees across all departments to make better decisions. But you can’t just pick the right analytics technology and move on to the next strategic opportunity.
Your company needs to make data-driven decision-making the norm to create an atmosphere where questioning assumptions and digging deeper into problems is valued. Data is the focal point of conversations at all levels, and participants hone their data literacy through practice.
Fundamentally, this requires a self-service model that provides quick and simple entry to pertinent data while still being subject to adequate security and management. Furthermore, it requires expertise, which can be used to create data-savvy employee training and development programs. Finally, getting executive support and building a community that embraces data-driven decision-making will inspire others to follow suit.
Advantages of Data-Driven Decision Making
With access to employee data, HR and other company leaders can better analyze trends and anticipate the needs of the business. So, how about the supervisors on your front lines? Evidence-based choices outperform guesses every time. It would be foolish to dismiss the potential growth-fueling effects of a proactive and predictive people analytics function.
Some of these advantages are discussed below
Increased accountability
Which members of your team have made the greatest contributions? Which teams have a goal deficit that they need to close? When decisions are grounded in evidence, responsibility is increased. When “everyone can see how their individual decisions connect to a strategy, it helps change the way organizations think about accountability in DEI, revenue, and changes in the workforce,” you’ve connected with the larger enterprise goals.
The reorganization of data ownership is often necessary for this amicable resolution. By having access to the same data, managers at all levels can identify which teams are succeeding and which need assistance before problems escalate.
Could you drive if you couldn’t see what you were doing? Or, lead a group without knowing which roles will be vacant in the coming year. Rapid development is possible when all group leaders have access to the necessary information. According to the latest findings of the High Impact People Analytics report, high-performing organizations put people analytics tools in the hands of leaders, managers, and employees at all levels.
It is difficult for a company to differentiate itself based on product and service alone, so having the right people with the right skills and capabilities to do the work and a process to get the information your workforce needs to do that work and achieve desired outcomes is crucial for any organization. People analytics solutions will bring bite-sized, just-in-time insights for individuals and teams, says Chris, going “beyond leadership and into the everyday work lives of employees.”
Alignment on company-wide goals
When information is shared amongst a large group of people, it becomes more than just a single piece of data. It can serve as a guide in the sky, like the North Star. He thinks the sky is the limit when managers can see everything about their employees. Smaller actions and decisions can be linked to a larger strategy and an even larger outcome when everyone is using the same data.
Everyone should know their place in the company and if they are being paid fairly according to their demographics if the goal of your business is to increase diversity, equity, and inclusion.
A sense of ownership at every level
We can increase trust in the data, promote transparency and accountability, and unite the company around a common set of metrics if managers at all levels have access to people analytics.
Instead of keeping spreadsheets on secret servers or keeping HR data isolated behind firewalls, high-performing teams will be able to communicate with lower-performing teams about when they have best practices to share and when they need to step it up.
Transparency
When a company operates openly and transparently and encourages its employees, customers, and investors to share information freely, a trusting business is formed. A vital indicator of the organization’s overall health is the information we can glean from looking into its people. You wouldn’t leave anything out when discussing your financial situation. You wouldn’t keep useful information to yourself if you had any.
To that end, “don’t hold back on anything” he says, “when it comes to the information of your people. The size of your company is based on the number of employees you have, right? Have you hired enough people to fill the most crucial roles? The average tenure at a company is how long? As an employee, why do you feel you have to resign?
CHALLENGES IN IMPLEMENTING DATA-DRIVEN DECISION-MAKING
Using evidence to make choices is easier in theory than in practice. Leaning on your data to make better decisions isn’t without its challenges. Failure to foresee and prepare for potential obstacles can impair your ability to make sound data-driven decisions. Bad choices made under these conditions can hurt your advertising and sales activities.
To keep your data-driven decision-making operations running smoothly, we’ve compiled some of the most common challenges you’ll face. Problems with instituting a system for making choices that rely heavily on data.
A Lack Of Infrastructure And Tools
The data is difficult to acquire because you need the right infrastructure and tools to collect it. Many businesses use a CRM to collect and organize data about their customers in a centralized database. Your data analysis and visualization tools should complement your data collection and management solution.
Poor Quality Data
A significant difficulty in data collection is ensuring that your data is of high quality. Issues with duplicates, inaccuracies, inconsistencies, and incompleteness are just a few examples of how your data quality could be affected. Moreover, the consequences of using inaccurate or out-of-date information are severe. Incomplete, inaccurate, or irrelevant information frequently leads to subpar decision-making.
Siloed Data
Siloed data occurs when different data sources aren’t properly integrated. For example, if your marketing team’s data isn’t combined with your sales team’s data. This can compromise the quality of your data. For example- your marketing team may be missing valuable data on a customer that your sales team has, thereby limiting their ability to make more informed decisions. Ensuring that there are no data silos will help ensure that everyone in your organization has access to the same data.
A Lack Of Organization-Wide Buy-In
Make sure that everyone across your organization buys into data-driven decision-making, especially when it comes to key players. When certain individuals or teams don’t buy in, they may not enter the data that you need to analyze the full scenario. As such, making sure that everyone is on the same page is vital to the effectiveness of your ability to collect and analyze accurate data.
Not Knowing How To Use Your Data
Even if you’re collecting data that is accurate, another issue that might come up is knowing how to leverage your data to help make key decisions. Not knowing what to do with the data you have or what actions you need to take based on your analytics defeats the purpose of data-driven decision-making.
UNDERSTANDING DATA ANALYTICS
The best approach to data analytics for any given organization will depend on its current developmental status. While analytics have found widespread business, they typically only provide information that can be used to make decisions after the fact rather than to foresee and prevent issues before they even arise.
An increasing number of businesses are adopting high-end data analytics solutions that make use of machine learning to enhance business decisions and spot trends and opportunities in the market. A company’s performance may suffer if it waits too long to implement data analytics with proactive, future-casting capabilities, which could lead to a business of previously unnoticed patterns and insights.
Types of Data Analytics
Descriptive Analytics
Descriptive analytics should serve as the bedrock of any reporting system; without it, business intelligence (BI) tools and dashboards would be useless. Questions like “how many?” “When?” “Where?” and “what?” are all satisfactorily addressed. Descriptive analytics can also be categorized using ad hoc reporting and pre-made reports.
A pre-written report contains information that has been organized and tailored for a particular purpose. For instance, you may receive a monthly report from your advertising agency or in-house advertising team detailing the metrics of your most recent advertising campaigns’ success.
Ad hoc reports, on the other hand, are made up as needed and rarely adhere to a strict schedule. Whenever there is a need to resolve a pressing issue or answer a pressing question in the business world, these documents are drafted. When you need to drill down into the finer details of your search, a report like this will come in handy.
A special report could be compiled on the demographics and interests of the people who have liked your company’s social media profile, in comparison to similar pages in your industry.
The accuracy of this tool greatly enhances your capacity to analyze your social media following. You shouldn’t need to revisit this report type unless there’s a drastic change in your intended audience.
Predictive Analytics
Predictive analytics may see the most use among all of the subfields of data science. Predictive analytics is used by businesses to spot patterns, connections, and causes. This broad class can be further subdivided into predictive modeling and statistical modeling, but it’s important to remember that these two approaches complement one another.
Predictive analytics could be used in a Facebook ad campaign for t-shirts, for instance, to ascertain the degree to which the campaign’s conversion rate tracks with demographic information such as location, income, and consumer interests. After collecting data from two (or more) distinct demographics, predictive modeling could estimate how much money could be made from selling to each group.
Prescriptive Analytics
Prescriptive analytics is a subfield of corporate analytics that makes use of AI and big data to prescribe actions in response to forecasts. Analyses of this type include optimization and random testing.
Advanced machine learning techniques are put to use in prescriptive analytics to answer questions like “What if we try this?” and “What is the best action?” You’ll know which variables to try, and you might even be able to suggest some more that will boost the odds of success even further.
ROLE OF DATA ANALYSIS IN DECISION-MAKING
Extracting metrics and key performance indicators (KPIs) from data is not always a simple process. It can be challenging to obtain timely integrated data when information is dispersed across the company. Collecting the information and conducting the analysis your business requires can be a sluggish and tiresome process.
This is probably due to a lack of available analytical resources. Information is available, but there is no mechanism for instantaneous retrieval. Data or business analysts should be able to independently and rapidly visualize and analyze data. The data is often scattered, necessitating manual collection by staff before analysis can begin.
Due to the prevalence of various sales applications, businesses may have access to marketing or financial data extracts in CSV or Excel format, for instance. They may also include ad hoc data collection in some cases. Before meaningful metrics or analyses can be derived, the data must first be combined, perhaps by treating a spreadsheet as if it were a database
The data collection process takes significantly longer than the analysis phase. In three weeks, a new analysis may be necessary, but it’s unrealistic to expect anyone to repeat this arduous and time-consuming process.
Inconsistencies in the data can also be introduced by employing this technique. It is common practice for workers to use a collaborative spreadsheet that is regularly updated. Inaccuracies have crept into the data due to the lack of a centralized, up-to-date source and the widespread use of outdated versions of the original spreadsheet by various groups.
The problem is made worse when spreadsheets are shared because of the inevitable formula errors and broken links. The problems inherent in using a spreadsheet as a database are exacerbated by the fact that spreadsheets have their unique quirks.
CUSTOMER DATA ANALYTICS
Customer analytics, also known as customer data analysis, is the study of a company’s customer base to gain insight into its clientele and improve services. An analytical methodology and framework, as well as data collection and organization tools, are crucial to any customer analytics effort. Businesses use analytics to help them make choices in areas such as product creation, business, and sales.
A common business decision that can be informed by customer analytics is choosing the advertising platform with the highest return on investment. Mapping the entire customer journey and adapting marketing strategies to that journey are examples of complex business decisions.
Using customer analytics has perks beyond just informing astute advertising choices. Moreover, they may have a major impact on your financial stability.
Importance of These Analytics
The value of analyzing consumer data continues to rise. Why this matters, and what you should be considering if you’re curious: The modern consumer enjoys unprecedented freedom of choice and access to information. And things are only getting worse.
Customers can access data about stores, products, prices, and other relevant information whenever and wherever they want. That’s why it’s so important to track consumer data so you can foresee how they’ll respond to your brand. The more you know about your customers, the easier it will be to cater to their wants and needs and make offers that will interest rather than repel them.
In today’s business world, where customers are more empowered and connected than ever before, customer analytics has taken on greater significance. The more a business learns about its customers’ habits and preferences, the better it can tailor its recommendations to them and attract similar customers.
Increasingly, businesses recognize the value of analyzing customer behavior to determine areas for enhancement. When businesses have access to all relevant information, such as where to shop, what to buy, how to pay, etc., they are better able to interact with customers based on their preferences.
Businesses need reliable data on consumer buying patterns and preferences to design marketable new offerings. Because of the comprehensive nature of 360-degree data analytics, businesses can better target their marketing and sales initiatives to each customer.
Customer happiness is essential to the long-term survival of any online business. Predictive customer analysis helps in creating new approaches to increase customer satisfaction. One of the most important goals of any customer analysis strategy should be to increase customer loyalty.
Good customer analytics will allow you to target the right customers at the right time, drastically reducing your campaign’s overall cost.
UNDERSTANDING CUSTOMER DATA ANALYTICS
By “customer analytics,” or “consumer data analytics,” we mean the systematic study of a company’s customers and their actions to identify, attract, and retain the most profitable customers.
Managers from many different departments, such as marketing, sales, customer service, information technology, and business analysis, are typically involved in customer analytics. The team needs to agree on which business metrics can give a complete picture of the customer experience to get any actionable data.
Customer analytics is built on raw data, which in turn leads to better business decisions. Customer analytics, which ultimately leads to well-informed business decisions, are built on the foundation of raw data. Before decisions can be made based on data, it must undergo three processes: collection, organization, and analysis.
To get started, businesses must compile raw consumer data from a wide range of sources such as marketing automation platforms, CRM systems, and even public records.
Some examples of data that could be gathered are listed below:
demographics
purchase history
web and social media activity
contact center interactions
advertisement engagements
survey responses
One way that businesses can gain insight from their data is with the help of a customer analytics tool. For instance, the program may aggregate data from several sources, including user profiles, purchase histories, and social media engagement.
Benefits of Customer Data Analytics
Good customer analytics can help you learn things like your clientele’s age range, gender, purchasing habits, and satisfaction levels. Both financial statements and customer analytics can provide insight into a business’s viability. Let’s take a look at the most crucial benefits of customer analytics so that you can better understand how to use them to grow your business.
One can accomplish the following with the help of customer analytics:
Increase the efficiency of your marketing strategy
Good customer analytics can help you learn things like your clientele’s age range, gender, purchasing habits, and satisfaction levels. Both financial statements and customer analytics can provide insight into a business’s viability. Let’s take a look at the most crucial benefits of customer analytics so that you can better understand how to use them to grow your business. One can accomplish the following with the help of customer analytics:
Attract and retain more high-value customers
If you know who your most valuable customers are, you can focus your marketing efforts on attracting and retaining them. It’s important to target your marketing and sales efforts toward bringing in and keeping high-value customers who will make repeat purchases. With the help of information about your most valuable customers, you can target your paid advertising and email marketing toward people who are more likely to make a purchase. To get the most out of your advertising budget and hit your sales and marketing goals, you need to narrow your focus.
Improve onboarding to encourage the second purchase
If you know who your most valuable customers are, you can focus your marketing efforts on attracting and retaining them. It’s important to target your marketing and sales efforts toward bringing in and keeping high-value customers who will make repeat purchases.
With the help of information about your most valuable customers, you can target your paid advertising and email marketing toward people who are more likely to make a purchase. To get the most out of your advertising budget and hit your sales and marketing goals, you need to narrow your focus.
Personalize the online shopping experience
Companies can improve the experience they offer their customers across all channels by collecting data from them, especially first-party and zero-party information. Customers will feel more connected to your brand if you collect data from them and immediately apply it to new content and personalized recommendations.
Don’t just rely on the information that is automatically collected during a transaction; think outside the box about how you can best gather information about your customers. Find out their preferences and preferences, wants and needs, priorities, and expectations from a brand.
REAL-LIFE EXAMPLES OF THIS ANALYTICS IN BUSINESS DECISION-MAKING
Now more than ever, information is the driving force behind most modern businesses. As more and more people gain access to the internet, data packets are being sent all over the world. Business owners understand this data could help them better serve their customers, understand market trends, and identify untapped opportunities.
To derive actionable insights from data, it must be analyzed and specific information is drawn that can be used to improve specific aspects of a market or a business. To maintain a competitive edge, businesses are increasingly adopting data analytics tools. For tasks like keeping tabs on crime, data analysis is being used by both private companies and government agencies.
Walmart
The New York Times reported in 2004 that Walmart had used a similar procedure to prepare emergency supplies for Hurricane Frances. Executives from various companies wanted to know what they should stock up on in anticipation of a business. Analysts sifted through a terabyte of customer data from similar situations at other Walmart stores to figure out what supplies to ship to Florida (quantitative data).
It would appear that when disaster strikes, Americans turn to strawberry Pop-Tarts and beer. Trucks carrying toaster pastries and six-packs were reportedly speeding down Interstate 95 toward Walmarts in Frances’ path because of Walmart’s “predict what’s going to happen, instead of waiting for it to happen,” as stated by the retailer’s then-chief information officer, Linda M. Dillon.
Analysts at Walmart were able to anticipate the high demand for storm necessities like beer and Pop-Tarts, and as a result, the company made a profit.
Amazon
Another frequently cited example of data-driven decision-making is Amazon. The online retailer makes informed product recommendations based on customers’ past purchases and other data collected through behavioral analytics.
The user will be presented with these recommendations at various points throughout the shopping process, from product browsing to the checkout page, to make the experience more personalized. Amazon may recommend a phone case to a customer who has recently made a purchase, such as a mobile phone, either at the time of purchase or via email a few days later.
By monitoring its customers’ purchases, Amazon can better meet their needs and boost its profits.
Netflix
The streaming service Netflix has amassed more than 128 million active users and a commanding lead in the market thanks to its use of data for customer retention. The company saw the need to upgrade the customer experience as competition intensified.
Customers’ watch time, date, location, typical content consumed, pause and resume times, and other metrics were analyzed in great detail to reach this conclusion. A trustworthy recommendation algorithm is created using this information to enhance the viewing experience for the viewer.
After the algorithm went live, the business analyzed the data and discovered that nearly 80% of users followed the system’s recommendations. This method has been shown to increase employee loyalty and keep businesses ahead of the competition. It exemplifies the value of data in decision-making.
SUMMARY
A data-driven approach allows for rapid response to market shifts. With this knowledge, companies will be able to make better decisions and better anticipate the results of their business activities. If you want to grow your business, outshine the competition, and earn your customers’ loyalty, you need a solution like this. Time spent analyzing data is well spent if it leads to increased profits for the business.
Some of the talking points have been discussed below.
Future of Data Analytics in Organization Decision-Making
Today’s businesses require enterprise-wide approaches based on data and analytics. The collected data and analytics will be supplemented with critical, intellectual, and creative thought, leading to improved decisions. The ability of leaders to diagnose issues, reach sound conclusions, and make sound business decisions will be enhanced. Business success depends on the business’s ability to make educated choices. Businesses can benefit from taking appropriate risks by making decisions with the aid of data and analytics. Where do we see data and analytics going from here? Okay, then, let’s find out.
Deliberations in the future will be heavily influenced by the insights gleaned from data and analytics. It can help businesses run more efficiently, ask the right questions, collect timely data, and make more informed choices.
Efficient Operations
Today’s businesses require enterprise-wide approaches based on data and analytics. The collected data and analytics will be supplemented with critical, intellectual, and creative thought, leading to improved decisions. The ability of leaders to diagnose issues, reach sound conclusions, and make sound business decisions will be enhanced. Corporate success depends on the business’s ability to make educated choices. Businesses can benefit from taking appropriate risks by making decisions with the aid of data and analytics. Where do we see data and analytics going from here? Okay, then, let’s find out.
Deliberations in the future will be heavily influenced by the insights gleaned from data and analytics. It can help businesses run more efficiently, ask the right questions, collect timely data, and make more informed decisions.
Asking the Right Questions
Through the use of analytics and data, companies can boost business, reduce costs, and streamline processes. However, businesses can use data and analytics to their advantage by expanding the business of their target markets. To avoid wasting resources on advertisements and other content that doesn’t resonate with business audiences, data and analytics can aid in better decision-making.
CONCLUDING REMARKS
Business leaders can better adapt to changes in consumer behavior and opinion with the help of data analysis. To better prepare for challenging scenarios in light of the gloomy economic outlook for 2022, businesses must use data analysis to gain insights into their audiences to strengthen their marketing strategies and decision-making.
Go-to-Marketing consulting refers to a type of consulting service that assists businesses develop and implement effective marketing strategies. The aim of go-to marketing consulting is to provide expert guidance and support to help companies achieve their marketing objectives, whether that’s increasing brand awareness, boosting sales, or launching a new product.
A “go-to-market” (GTM) strategy is a plan for how a company will successfully introduce a good or service into the market. It outlines how the company will reach audiences, position the product in the market, and achieve growth and profitability. An effective GTM strategy includes various components, such as market surveys, target customer identification, product positioning, pricing, and sorting various channels.
Numerous consultants provide services aimed at determining and developing a go-to-market strategy; these consultants employ a variety of methods and tools (including surveys, data analysis, and customer insights) to aid businesses in better understanding their target market, developing more targeted marketing strategies, and establishing more sustainable business models.
HOW DOES IT DIFFER FROM TRADITIONAL MARKETING CONSULTING?
Go-to marketing consulting differs from traditional marketing consulting in several ways:
Focus on outcomes
consultants focus on a GTM strategy that delivers measurable results and outcomes, rather than simply providing advice and recommendations to improve their marketing strategy.
Agile approach
Go-to-market consultants adopt an agile and flexible approach, responding to changing market conditions and customer needs in real-time. They focus on how much customer acquisition costs they would incur and for which market segment.
Go-to marketing consultants are well-versed in the latest marketing technologies and use these tools to optimize and streamline marketing efforts.
Data-driven
Go-to marketing consultants use data and analytics to inform their strategies and make evidence-based decisions. Plenty of digital channels come into play when they strategize, based on buyer persona, as to which go-to-market strategy will best serve their purpose.
Customer-centric
Top marketing consultants put a premium on client relationships built on trust and open communication, and they regularly solicit and act on client feedback to shape marketing plans. A consultant for developing a go-to-market strategy should devise a sound plan of action for reaching target audiences that aid in achieving organizational goals.
In conclusion, as opposed to traditional marketing consulting, which typically focuses on advice and suggestions, go-to marketing consulting is more results-driven, data-driven, and customer-centric. To maximize sales, a consultant specializing in go-to-market strategies needs to know which niches they can effectively serve.
UNDERSTANDING HOW TO MAP OUT THE BEST MARKETING STRATEGY
A thorough understanding of the target market, competitive environment, marketing strategy, and the offered product or service is essential for developing a successful go-to-market (GTM) plan. Providing outstanding service requires an in-depth familiarity with the market, trends, potential customers, consumer behavior, and niche markets.
The go-to-market strategy consultant should also have a clear understanding of the company’s goals, budget, and resources to create a strategy that aligns with the overall business objectives. The go-to-market strategy should focus on creating value for the target customers, understanding buyer persona, positioning the product or service effectively, and building a strong brand image. Effective communication and implementation of the gtm strategy are also crucial for its success.
WHAT SERVICES DO GO-TO-MARKET CONSULTANT OFFER?
Consultants specializing in Go-to-market (GTM) help businesses develop and implement plans for launching new products and services. Studying the marketplace, figuring out whom to sell to and how to get the word out about your new product, and creating a marketing strategy and advertising campaign are included in Go to market consulting. The objective is to improve businesses’ ability to connect with their ideal customers, therefore expanding their client base and ultimately their bottom line.
BENEFITS OF WORKING WITH A GO-TO MARKETING CONSULTANT
Working with a marketing consultant can bring several benefits to a business, including:
Expertise: Successful businesses often use the services of marketing consultants because of the abundance of knowledge and expertise they bring to the table in terms of effective marketing tactics and techniques.
Fresh perspective: A marketing consultant from the outside can help you see your marketing strategy in a new light and come up with innovative approaches.
Increased efficiency: Hiring a marketing consultant can help you save time and money by streamlining your marketing activities.
Access to resources: You can benefit from a marketing consultant’s connections to media outlets, influential people in your industry, and other marketing pros.
Cost savings: Rather than spending money on a full-time marketing staff and the related overhead, you can save money by employing a marketing consultant on a project basis.
Measurable results: You can count on marketing experts to help you assess the efficacy of your campaigns and make educated decisions based on hard data.
COMMON CHALLENGES AND HOW A GO-TO MARKETING CONSULTING CAN HELP
Common challenges that businesses face include:
Brand Awareness: Difficulty in creating brand awareness and reaching the target audience.
Competition: Difficulty in differentiating the business from competitors and standing out in a crowded market.
Lead Generation: Difficulty in attracting and converting leads into paying customers.
Customer Retention: Difficulty in retaining customers and building loyalty.
Limited Budget: Difficulty in maximizing marketing efforts with a limited budget and resources.
STRATEGIES FOR HOW GO-TO MARKETING CONSULTING CAN HELP OVERCOME CHALLENGES
Developing a comprehensive marketing strategy: They can help you identify your target audience, create a brand image, and develop a plan to reach your marketing goals.
Conducting market research: They can help you understand your market and competitors and identify opportunities for growth and differentiation.
Maximizing your marketing budget: They can help you prioritize your marketing efforts and allocate resources effectively, ensuring you get the most out of your budget.
Improving lead generation: They can assist you with developing a lead nurturing plan, optimizing your website for conversion, and making use of lead magnets.
Building customer loyalty: They can help you create customer-centric marketing programs, gather customer feedback, and improve the overall customer experience.
In general, a marketing consultant may assist you to overcome typical business obstacles and reach your marketing objectives by bringing their knowledge, imagination, and analysis of hard facts to the table.
HOW TO CHOOSE THE RIGHT GO-TO MARKETING CONSULTANT FOR YOUR BUSINESS?
To choose the right marketing consultant for your business, consider the following steps:
Define your goals: Clearly outline your marketing goals and objectives so that you can look for a consultant who has experience in helping businesses like yours achieve similar goals.
Research potential consultants: Look for marketing consultants with a strong track record in your industry or niche. You can start by searching online, asking for referrals from colleagues or friends, or consulting with professional associations.
Evaluate credentials and experience: Verify the consultant’s background and expertise to be sure they have what it takes to help you succeed in marketing. Think about their previous work, examples, recommendations, and list of satisfied customers.
Assess communication and collaboration skills: Good communication and collaboration skills are critical for a successful consultant-client relationship. Schedule an initial consultation with potential consultants to assess their communication style and ability to work with your team.
Compare fees and services: Compare fees and services offered by different consultants to determine the best value for your investment.
Decide: Select the consultant who best fits your needs in terms of experience, communication, and cost to realize your marketing objectives.
Before beginning any engagement, make sure everyone involved knows their respective roles and duties, as well as the overall scope of the project.
CASE STUDIES: SUCCESS STORIES OF BUSINESSES THAT HAVE BENEFITED FROM GO-TO MARKETING CONSULTING
A case study is a comprehensive examination of a real-life situation or event, typically involving a business, to gain insights into a specific subject, such as marketing. It can demonstrate the benefits a company experiences because of utilizing a particular marketing strategy or consulting services.
There have been several successful case studies of businesses that have benefited from GTM consulting, including:
Fresh works
As a result of working with a GTM consultant, a cloud-based provider of customer interaction software was able to better position its brand and expand its customer base, leading to more income.
Dropbox
For assistance breaking into the corporate sector, a file-hosting business retained the services of a GTM consultant. The consultant assisted Dropbox in developing a strategic marketing plan, which increased income significantly in the business sector.
Hootsuite
Hootsuite hired GTM consultants to help expand the company’s footprint internationally and into new areas. Hootsuite’s foreign sales and popularity rose thanks to the consultant firm’s work on the company’s go-to-market strategy.
These studies show how GTM consultancy has helped these organizations enhance their marketing efforts, leading to significant increases in income.
In conclusion, marketing consultancy can boost a company’s brand awareness, customer loyalty, and bottom line in many ways. These are just a few of the many companies that have benefited from go-to-market strategy consultation.
FUTURE OF GO-TO MARKETING CONSULTING AND ITS IMPACT ON THE MARKETING INDUSTRY
Data-driven decision-making and unique strategies for each business play an increasingly important role in the future of go-to-market (GTM) consultancy. GTM consultants will be required to use the consumer data at their disposal to personalize their suggestions and strategies for each client as technology and data collection capabilities continue to expand. The result will be a more productive method of advertising, which will boost the fortunes of businesses that embrace it. Furthermore, GTM consultants will need to keep up with the latest trends and technology in the marketing sector if they want to be valuable to their clients.
GO-TO-MARKET STRATEGIES: KEY CONSIDERATIONS FOR A SUCCESSFUL BUSINESS
Businesses must hire go-to-market consultants to assist them to create profitable sales strategies. Market segmentation, sales force composition, value proposition, pricing strategy, promotional tactics, and channels of distribution are just a few of the components of an effective go-to-market strategy. This post will cover the fundamentals of developing a winning approach to entering a new market.
Discovering whom you want to buy from is the first step in creating an effective marketing campaign. Your success here will depend on your in-depth familiarity with your intended market, their wants and needs, and the state of the market today. In addition to defining these broad categories, you should also divide your target market into subsets based on demographics, purchasing habits, and product usage. By breaking down the potential customer base into smaller groups, sales performance can be enhanced in several ways.
Identify Your Unique Value Proposition
Your company’s value proposition is its unique selling point. It ought to make it easy for clients to see why they should choose your product or service over the competition. A distinct selling concept is essential for attracting and keeping clients and giving businesses an edge over the competition.
Develop a Marketing and Sales Approach
A marketing and sales strategy can be developed after a target audience and USP has been identified. Included in this strategy should be tactics for drawing in new clients while keeping the ones you have. In addition to more conventional methods like direct sales and pedagogical content, your marketing strategy should make use of digital networks like social media. Focusing on the customer’s experience from the first point of contact to and beyond the transaction is an important part of any successful sales strategy, as is the implementation of a sales process and sales organization to back up the sales force.
Consider the Cost of Customer Acquisition
The cost of acquiring a new customer should be taken into consideration when developing a go-to-market strategy and updating the market strategy which was in play. This cost should be balanced against the potential revenue generated from a new customer to determine the feasibility of your sales strategy. Your pricing strategy should also take into consideration the cost of customer acquisition, as well as the value proposition and industry trends.
Plan for Proper Pricing and Distribution
To ensure that your pricing plan serves your business goals and value proposition, it is essential that you give it plenty of thought before launching into the market. Considerations such as these, along with the value of your product or service and market dynamics, should inform your price strategy. The cost of customer acquisition and the length of the sales cycle can be affected by the distribution channels utilized to reach your target market.
Successful market entry, then, rests on a foundation of successful change management. Modifying the sales approach, sales procedure, or sales structure of your business requires rigorous preparation and execution. Having a devoted and well-trained sales force is also essential since your marketing and sales efforts will suffer without them.
In conclusion, a successful go-to-market strategy requires careful planning and a thorough understanding of your target market, unique merit proposition, and commercial operations. By considering key considerations such as target market, value proposition, marketing, and sales approach, cost of customer acquisition, pricing, and distribution, and companies can ensure their go-to-market strategy is effective and drives business success.
THE KEY TO A SUCCESSFUL BUSINESS PLAN: UNDERSTANDING THE BUYER’S JOURNEY
New product launches are more likely to be successful when careful thought and research have gone into the buyer’s journey. Putting yourself in the buyer’s shoes and learning what they value is essential if you want to achieve your strategic goals.
Here are some key points to keep in mind when developing your business plan:
Product Market Fit
Before releasing a product, it’s important to make sure it will be well received by consumers. Understanding the size of the market, differentiating between emerging and mature markets, and zeroing in on your ideal client are all essential first steps.
It is a process that every customer goes through to become aware of, evaluate, and purchase a product or service. An efficient go-to-market strategy made to better understand the journey a buyer goes through, to become an end consumer, can help you tailor your marketing and sales efforts to meet the needs and preferences of your target audience.
The three stages of the buyer’s journey are:
Awareness
The probable customer becomes aware of a problem or need and begins searching for information to address it.
Consideration
The actual customer evaluates options and narrows down the choices to a few that they believe will best address their problem or need.
Decision
The customer makes a final decision and purchases a product or service.
To make a product fit, according to the go-to-market strategy, one should conduct industry research to understand your target audience and their needs, and then use that information to inform the features, messaging, and positioning of your product.
The Buying Center
The buying center refers to the group of people involved in the purchasing decision. This includes the influencer, decision maker, and user. Understanding the buying center can help you better position your product and service offering to meet their needs.
Service Model
Your go-to-market service model should align with your promise and ideology and meet the needs of your customers. This includes understanding the pricing details and developing a customer database to track your business performance.
The go-to-market strategy helps prepares a model in understanding the buyer’s journey is similar to the product model, but with a focus on services rather than physical products. The goal is to understand the steps an interested customer takes to become aware of, evaluate, and purchase a service.
Evolving Customer
Remember that your customers are dynamic beings whose wants and needs are always changing. Your company strategy needs to be malleable so it can adjust to these shifts.
Go-to-Market Strategy
Always keep in mind that your customers are ever-evolving beings whose preferences and demands will change over time. The strategy your organization employs should be flexible enough to accommodate these changes.
Market Share
Increasing your company’s clientele is a top priority right now. To grow a profitable company, it’s crucial to invest time and energy into both improving current offerings and looking for new markets to enter. Your understanding of business strategy and gtm is crucial to the development and expansion of your firm.
In conclusion, understanding the journey, made from start to end, by any consumer or buyer and considering the customer’s perspective is essential to the success of your business. By aligning your product and service offering with your brand promise, and continuously evolving your business strategy, you can increase industry share and achieve your strategic objectives.
HOW DOES GO TO MARKET STRATEGY AND MANAGEMENT CONSULTING GO HAND IN HAND?
A company’s go-to-market strategy details how the firm intends to reach its intended customers and introduce them to its products and services. A business might benefit from management consulting by receiving professional guidance from industry insiders on how to improve operations and cut costs.
The company’s strategy for breaking into its target market and introducing its products is laid out in the Go-to-Market Strategy. Management consulting offers organizations guidance from industry experts, including both peers and competitors, on how to improve operations while lowering costs.
GO-TO-MARKET STRATEGIES: ESSENTIAL FOR A SUCCESSFUL PRODUCT LAUNCH
A company’s go-to-market strategy determines how well it introduces a new product to consumers. To do this, one must first determine the intended audiences and then establish an appropriate strategy for reaching them through advertising. Establishing clear distinctions between different types of customers and creating buyer personas can aid in the creation of targeted strategies for expanding a business’ clientele.
Salespeople are vital to the success of any business because they are the ones who communicate with potential customers. To reach the intended result, it is crucial to pay close attention to the cost of acquiring new customers while simultaneously concentrating on providing a competitive advantage.
In emerging markets, it’s important to understand the needs and behaviors of probable customers and develop a strategy to satisfy them. A well-planned go-to-market strategy can lead to successful product launches, increase market share and drive business growth.
UNDERSTANDING THE GO-TO MARKET AND ITS STRATEGIES
A Go-to-market (GTM) strategy typically includes the following elements:
Target market
Identifying the specific segments of customers that the company wants to reach.
Understanding of Value
Defining the unique value that the company offers to its customers.
Pricing strategy
Determining the pricing structure for the company’s products or services.
Choosing the best channels
Choosing between several sales channels, such as the Internet, traditional stores, and dedicated sales staff, to reach your target audience and close the deal.
Sales and marketing plan
Creating proper marketing and sales plan to increase demand and sales through promotion and publicity.
Customer acquisition and retention
Developing plans for attracting and retaining customers, including customer service and support.
Metrics and KPIs
Develop a set of metrics to evaluate how well the GTM plan is working.
These parts work together and must be in sync with the company’s overall strategy and objectives. The go-to-market (GTM) strategy is essential since it dictates how a business will sell to its intended demographic.
SIMPLIFYING GO-TO-MARKET STRATEGY WITH RFC
RFC is a boutique firm that specializes in go-to-market strategy consulting solutions. Please feel free to contact us to know more about the Go-to-market consulting and other services that we offer.
Ruskin Felix Consulting LLC partnered with Huron Wholesale Supply to create a corporate profile of the company by highlighting the overview of the company, and the products and services offered by them.
Huron Wholesale has been one of Michigan’s top suppliers of wholesale commercial construction building materials for over 25 years. They carry an extensive inventory of everything from frames, doors to ceiling tile, and everything in-between. They also stock a lot of hard-to-find items that one will not find at their typical big box store. They work closely with a huge variety of products and companies in various segments.
Doors and mirrors – Huron Wholesale Supply’s offering includes a full complement of metal doors and frames that meet the important requirements-from fire-rated cores to energy cost savings.
Frames – Huron Wholesale Supply’s hollow metal frames are designed for standard and heavy-duty applications and are perfect for a wide array of application in commercial, multi-family, industrial and institutional buildings.
Ceilings – The ceilings and walls one creates in a space are more than mere surfaces. Huron Wholesale Supply offers aesthetic beauty that inspires creativity and contributes to well-being in offices, schools, medical facilities, hotels, and more. They offer acoustic benefits that help workers focus, students learn, and patients heal.
Suspension systems – Huron Wholesale Supply’s re-engineered suspension systems are faster and easier to install than ever. With input from contractors and field installers, they have redesigned their acoustical suspension systems to create complete grid solutions that saves one time and money.
Bathroom – Their washroom accessories include a combination of towel and waste units, sanitary napkins or tampon vendors, soap dispensers, mirrors, paper towel dispensers, waste receptacles, and hand dryers.
Security – Huron Wholesale Supply provides some of the leading security solutions for both retail and business use. Their hardware products include a range of keypad locks, smart locks, smart deliver box, front door bundles, smart cabinet lock, patio door locks, door lock hardware, accessories and safes.
They offer a complete range of access solutions making people feel safe and secure in simple and convenient ways with products in areas such as mechanical and electromechanical locking, access control, identification technology, entrance automation, security doors, hotel security and mobile access.
Hardware & accessories– Some of the Key products available at Huron Wholesale Supply are Mechanical Locks, Exit Devices, Surface Door Closers, Electrified Solutions, IC Cores, Cylinders, Master Key Systems, Deadbolts, Sliding Barn Door Hardware, Commercial Hinges, Flat Goods, General Hardware, Electronic & Electrified, Locksets, Hinges, Pivots, Thresholds and weather sets.
Ruskin Felix Consulting LLC partnered with Jay Lark – a security services company, to understand the financial viability and the valuation of Jay Lark. The report highlights the services revenue bifurcation, and NPV of future cash flows. This report also highlights a comprehensive business assessment, industry details and the trend analysis. To understand the financial projections of Jay Lark, the report also sheds light on the revenue assessment, revenue projection, cost assessment, and cost projection. The report also sheds light on the financial metrics to value Jay Lark by analyzing the enterprise value.
The security industry in Australia generates around $6 billion in revenue. There are in excess of 6000 security businesses around the country, with over 54 000 workers. The sector includes several major companies as well as many smaller operators. It is not uncommon for several the smaller operators in the industry to have commenced as security guards themselves. QLD, NSW and VIC account for approximately 78.8% of industry revenue due to higher population and business numbers While the sector accounts for only around 0.5% of total employment and 0.4% of businesses.
In Australia, apart from Jay Lark, the security industry has consistently represented more than 2% of requests for assistance involving a workplace dispute lodged with the FWO in Australia. In the 2015-16 financial year, at the time the compliance activity component of the Inquiry commenced, the security sector was ranked ninth highest in terms of workplace disputes requiring FWO intervention. The most common age group lodging requests for assistance with the FWO in the security industry is the 40 – 49 age cohort (28.7%).
The Overall Valuation of Jay Lark from a 5 year forward EV based perspective is A$ 525,432. For purposes of Negotiation, the firm should be valued in the following range: Value of Firm Range: A$ 400,000 – A$ 600,000.
As per our information the company is looking for an investor to acquire 50% of the company. In that regard, Jay Lark’s 50% should be valued at approx. $262,000. This will also ensure that Jay Lark will have adequate cash flows to fund operations through it reserves for a period of 1.8 Years. This will ensure that the long-term profitability and growth of value in the company. It is to be noted that this valuation ignores the positive effect of landing a tender that Jay Lark avails to and only looks at linear growth of revenues through systematic scaling. This could provide very high value to the investor and help the company in future expansion as well.
By way of computation, the value of Jay Lark after license and Post COVID on a 5 Year Forward Valuation is $525k and such valuation ranges as stated should be used to sell any stake in the company.
Ruskin Felix Consulting LLC created a comprehensive research and strategy report based on the Beverages industry. The reports sheds light on the overall industry analysis, market size and technical analysis which comprises of the certification analysis, calorific value analysis and sugar content analysis. The report consists of a detailed research based on the behavior and trends of consumers – behavior shifts, trend analysis, competitive analysis, and opportunity analysis. The report highlights the e-commerce strategy, B2C sales approach, and the execution plan of the project. The report lays emphasis on the business model and the brand positioning of the company.
Sales of major beverage categories are expected to grow from $150 billion to more than $160 billion by the end of 2020, according to a new report titled U.S. Beverage Market Outlook 2020: Grocery Shopping & Personal Consumption in the Coronavirus Era by Packaged Facts, a leading market research firm and division of MarketResearch.com. Most packaged beverage categories are mature, but there are still growth opportunities for companies that focus on product innovation, appeal to shifting consumer preferences, and successfully navigate market changes associated with the COVID-19 pandemic.
Over the past 2 years, the pandemic has changed the way consumers shop, socialize, entertain as well as the types of foods and beverages they consume. Although vaccines have been developed and are in distribution, the pandemic is affecting beverage trends and overall health and wellness.
From soft drinks and fruit juices to diet beverages and alcohol, the United States’ beverage market is, indeed, a profitable one. The success of the industry is illustrated by the nation’s extensive consumption of alcoholic and non-alcoholic beverages. Current estimates value the U.S. beverage market at an impressive $146 billion.
Globally, 57% of consumers report being more concerned about their immunity as a result of COVID-19. As consumers strive to enhance their immunity, they are becoming more knowledgeable about how the human microbiome supports the immune system and overall wellbeing. Products containing probiotics, prebiotics and postbiotics can benefit the microbiome and are already gaining momentum in the marketplace.
Some of the changing trend for various health sectors are as follows:
Plant based beverages is the most popular trend in the beverage industry today and has tremendous opportunity. More and more brands are coming up with plant-based alternatives as part of the product portfolio with the rise in veganism.
Juice cleanses are old school and should be replaced with beverages with low-calorie and zero calorie drinks and smoothies with popular flavors such as strawberry, mango, vanilla, chocolate etc. Tea and fruit infused beverages should also be considered while developing a new drink for the weight management ND Metabolic health segment.
With rising stress and focus on emotional well-being, this segment has tremendous opportunity. More and more people are leaning towards CBD based drinks and oils to help with their insomnia, anxiety and other illness. Some popular choices of beverages in this category are CBD infused coffee, oils, sparkling water, soda, syrup and shots.
With an increased focus on personal health and immunity after the collapse of health policies across the world due to COVID, the company should look at focusing on making immunity-based drinks focused on organically bettering the internal immune system of the consumer.
Based on the report, there are a few product recommendations that have been highlighted and emphasized on:
Probiotic beverages – To focus on Probiotics in the form of soda as it has lesser existing competition than diary-based probiotics and has a very high appeal to the millennials due to their inclination towards sugary sodas.
Wellness shots – More and more brands are focusing on ancient medicinal and apoptogenic ingredients in wellness shots and we recommend this company do the same. Ingredients like apoptogenic.
Plant-based milk – We recommend creating plant-based coffee beverages, smoothies, or desserts for this category as the milk category is already crowded with existing competition.
Weight management beverages – Low calorie and Zero sugar drinks are also another option to consider
Sports and energy drinks – The energy and sports drink market is very saturated and has many top players already existing in the market. Any new entry in the market will have to come with a huge marketing budget and celebrity endorsements to be successful.
CBD beverages – Some recommendations for products in this category would be to create CBD infused water, CBD infused soda, CBD infused coffee, and CBD infused shots.
Mocktails and cocktails – Low content alcoholic drinks in sustainable packaging like glass.
Juices – An exciting innovation being seen in North America is caffeinated fruit juice, where fruit juice is infused with cold brew coffee. This is another arm of the functional energy drink category, tapping into the demand from health-conscious consumers.
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