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