The Situation
The collateral recovery industry is very competitive and highly fragmented. There are a few large players, but for the most part, the industry is dominated by small firms. One of the bigger players was losing market share to smaller lower-cost competitors. Their accounting firm suggested they cut costs and try to compete on price. We disagreed. Our research indicated that by focusing on price alone, key customer requirements were not being met. Addressing these requirements would differentiate the company from its smaller lower-cost competitors. Using our integrated approach, we helped develop an improved customer value proposition, service delivery strategy, pricing strategy and marketing plan. We also implemented a measurement system that allowed company management to measure progress toward customer and operational goals.
The Result
By understanding key customer requirements and delivering service to meet these requirements the company was able to dominate a segment of their market which was not as price sensitive. The company won back a number of major customers and increased revenue by more than 30%.