Career track Three: Marketing
Sales & Marketing:
Revitalizing the Value Proposition
Keith O’Brien
Vice President, Global Research, Growth Team Membership™
Frost & Sullivan
Keith.OBrien@frost.com
Profiled Best Practice Company
Firm: Kronos
Industry: Software Services and Applications
Headquarters: Chelmsford, Massachusetts, United States
Geographic Global
Footprint:
Ownership: Private
Revenue (2010): ~$750 million USD
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Growth Team Membership™ research.
5
Growth Challenge
Problem:
Slowing product growth forces Kronos’ marketing and sales organizations to
create and deliver a differentiated value proposition.
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Growth Team Membership™ research.
6
Kronos’ marketing leadership works with Sales to revitalize the value proposition and
create differentiated sales messages
Creating and Embedding a New Value Proposition
Revisit Existing Value
Proposition
Create New Value
Proposition
Develop Sales
Messages
Drive Sales Force
Adoption
Objective
Conduct a baseline assessment
of the current value
proposition’s strengths and
weaknesses
Objective
Develop differentiated value
proposition
Objective
Translate the value proposition
into sales force messaging
Objective
Achieve 100% adoption of new
messaging by sales force
Activities
• Perform market assessment
• Conduct brand positioning
workshop
• Run customer/prospect
focus groups
Activities
• Conduct Affinity
Diagramming exercise to
identify customers’ Critical
Business Issues (CBIs)
• Pinpoint how Kronos
uniquely addresses these
CBIs and translate into a
value proposition
Activities
• Conduct Power Messaging®
Workshop with sales and
marketing leadership to
update messaging and
techniques
Activities
• Conduct Power Messaging®
Workshops with entire
sales force
• Establish Sales and
Marketing Leadership
Councils by vertical market
Output
• Market assessment
• Focus group findings
• Governing Brand Idea (GBI)
Output
• Critical Business
Issues (CBIs) and key
differentiators
• New value proposition
• Foundational Message Guide
(FMG)
Output
• New messaging techniques
• Portfolio of customizable
messages
Output
• Sales force adoption of
customizable messages and
techniques
• Industry-specific Sales
and Marketing Leadership
Councils to drive ongoing
adoption
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Growth Team Membership™ research.
7
Pressure-test market understanding and value proposition
Market Assessment
Brand Positioning Workshop
Participants
Senior sales and marketing executives (one-day
workshop)
Objectives
• Audit existing marketing messages and
collateral
• Develop preliminary Governing Brand Ideas
(GBIs) to be tested in focus groups
Situation
• Management believed Kronos was the
market leader, but the company’s product
revenue growth was flat, despite category
growth
• Commissioned a third-party assessment of
the workforce management (WFM) market
Objective
Preliminary Governing
Brand Ideas (GBI)
Capture the current state of the workforce
management category.
Findings
“The experience to
know it’s complex. The
expertise to simplify it.”
33Two customer segments exist:
-- Ease-of-use buyers who value straightforward
implementation with low cost of ownership
(50%)
-- Functionality users who value advanced
features (50%)
Kronos is the market leader, but growing slower
than the market
Kronos lacks a compelling category positioning
Need to revise
brand positioning
to appeal to both
segments
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
“Workforce
management doesn’t
have to be so hard.”
“Simple solutions that
work hard.”
Growth Team Membership™ research.
8
Conduct focus groups to gather insights on the most effective brand positioning
Focus Groups
Objective: Validate Market
Assessment findings
Objective: Assess Kronos’
competitive standing
Objective: Identify the most
convincing GBIs
Sample Questions
• What are your top-three needs
addressed by a WFM solution?
• On a scale of 1 to 5, how
important is fast payback to you?
Sample Questions
• What is Kronos’ personality?
• For what type of solution would
you call ADP?
Sample Questions
• Which positioning statement do
you find most compelling?
• Would the statement entice you to
consider Kronos?
Results
• Users are frustrated with the
complexity of WFM solutions
• Prospects who value ease-of‑use
WFM solutions are currently
underserved
Action Steps
• Simplify the customer experience by
modifying the user interface
• Expand brand positioning to
accommodate ease of use and highfunctionality customer segments
Results
• Awareness and consideration rates
are lower than expected
• Existing value proposition around
time and attendance benefits is
undifferentiated
• Perception of market strengths
does not align with customer/
prospect perceptions
Action Steps
• Develop a differentiated value
proposition
• Work with sales leadership to
embed new value proposition with
the sales force
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Results
• “Workforce management doesn’t
have to be so hard” is an appealing
brand position:
-- The statement defines the category
and appeals equally to functionality
and ease-of-use buyers
Action Steps
• Leverage the brand positioning in
marketing
• Create internal documents and
perform training to align employees
on the new positioning
Growth Team Membership™ research.
9
Develop a customer-focused, differentiated value proposition
Developing the Value Proposition
Using the Governing Brand Idea as the foundation, Marketing leaders
employ the Affinity Diagram to identify three critical customer needs
that should be addressed by a workforce management (WFM) solution.
Create Affinity Diagram
Workforce management
doesn't have to be so hard!
CMO
VP,
Enterprise
VP, Corporate
Marketing Marketing
Identify Critical
Business Issues (CBIs)
CBIs are core customer
needs that can be addressed
by workforce management
solutions.
Control
labor
costs
Improve
workforce
productivity
Minimize
compliance
risk
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Marketing leaders identify how
Kronos can uniquely address
Critical Business Issues.
Develop Kronos’ Key
Differentiators
33
Kronos provides complete
automation
33
Kronos delivers highquality information
33
Kronos is easy to own
Articulate Value
Proposition
Kronos is the global
leader in workforce
management
solutions that enable
organizations to:
• Control labor costs
• Minimize compliance
risk
• Improve workforce
productivity
Growth Team Membership™ research.
10
Create a Foundational Messaging Guide to provide a companywide reference point
for the new value proposition
Foundational Messaging Guide (FMG)
The FMG: An Overview
• The FMG is designed to align all employees on Kronos’ value
proposition and is updated regularly
• The FMG demonstrates how Kronos addresses the two core
questions listed below
FMG’s ability to
attain objective
FMG Objectives
Create common understanding
of the value proposition
Drive alignment on role of
WFM, core customer needs,
and Kronos’ solutions
Why do customers
purchase workforce
management?
Answer: the three Critical
Business Issues (CBIs)
Why purchase a Kronos
workforce management
solution?
Answer: Kronos’ key
differentiators around each
CBI
Foundational Messaging
Guide
Contents
Why Workforce Management? . . 3
CBI #1 Controlling Labor Costs . . 4
CBI #2 Minimizing Compliance
Risk . . . . . . . . . . . . . . . 7
CBI #3 Improving Workforce
Productivity . . . . . . . . . . 9
Differentiator #1:
Complete Automation . . . . . . . 14
Differentiator #2:
High-Quality Information . . . . . . 17
Differentiator #3:
Easy To Own . . . . . . . . . . . . . 18
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Supply the building blocks for
differentiated sales messages
Provide sales messages to
address critical business issues
Develop selling techniques to be
used with prospects





ary
mm
In Su
The FMG captures the value proposition
in a written format; however, it does
not enable Sales to articulate the value
proposition verbally.
Growth Team Membership™ research.
11
Translate the value proposition into effective sales messaging
Sales Force Adoption Challenges
Bringing differentiators to life through customer messages
The sales force needs to believe in the messages
“Not Invented Here” syndrome
Power Messaging® Workshop
Workshop Participants
Marketing leadership, Sales leadership, Key sales representatives,
and Product Management
Purpose
• Translate differentiators into messages and delivery
techniques for Sales
• Build sales and marketing consensus on messages and
techniques
Critical Inputs
• Why customers buy (CBIs) and why they buy from Kronos
(differentiators)
• Preliminary success stories that demonstrate how Kronos
uniquely meets customer needs
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Sales Messaging Techniques
Message
Attributes
Messaging Techniques
Stories
Big
Number
with
Picture
Plays
Contrast
3D
Props
Leverages
customer
stories
Appeals to
multiple
learning
styles (visual,
auditory,
kinesthetic)
Customers can
relate to the
message
Impact is easily
understood
and memorable
Growth Team Membership™ research.
12
Develop easy-to-customize messaging techniques
How to Create a Story with Contrast
Retail & Hospitality Customer Example
Squeezing More Out of Scheduling
The story
must be
relevant
Emphasize
the benefits
of choosing
Kronos
Jamba Juice
Business
• Quick-serve
restaurant
• Smoothies
Company
Size
• 730 locations
• Operates in 47
states
Key
Products
• Timekeeping,
forecasting,
scheduling
Before Kronos
• Manual forecasting and scheduling
resulting in:
-- Gaps in coverage
-- Overstaffing
• Inability to react to changing
conditions, especially the weather
• No visibility into store operations
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Results Achieved
“The $19.7M decrease in labor cost was
primarily attributed to optimization of labor
scheduling, leading to more efficient labor
management.”
Highlight
pertinent
results
– 2010 Annual Report
• 2008 Labor = 36% of sales
• 2009 Labor = 34% of sales
It’s a story,
so limit
data
After Kronos
• Automated scheduling
• Accurate baseline forecasts
• Quick reaction to weather conditions:
-- Overcast and cold—call people off
-- Sunny and hot—staff up
• Companywide scheduling and
regulatory compliance
Make the
customer
the hero
Growth Team Membership™ research.
13
Drive sales force adoption by directly addressing barriers to adoption
Power Messaging® Workshop with Kronos Sales Force
Workshop
Overview
Attendees:
Sales force (450
participants, in
groups of 25–30)
Duration:
Two Days
Pre-work:
• Complete
Power
Messaging®
eLearning
module
• Bring
examples of
customer
challenges
successfully
addressed
by Kronos’
differentiators
Secure Buy-In on the
CBIs and Differentiators
Create Ownership
of the Techniques
Put the Techniques
into Practice
Adoption Barrier:
Skepticism
Adoption Barrier:
Ownership
Adoption Barrier:
Confidence
Overcoming the Barrier:
The facilitator leads a group
exercise requiring participants
to “wrestle” with the new
messaging:
• Discuss the CBIs and
differentiators candidly and
compare them to existing
messages
• Prove that the differentiators
are unique compared to
competitors’ offerings
• Emphasize positive
engagement with the
differentiators
Overcoming the Barrier:
The facilitator helps participants
tailor their own success
stories for the new messaging
techniques by:
• Encouraging participants
to use multiple messaging
techniques and select the
ones they prefer
Overcoming the Barrier:
The facilitator leads role-play
sessions to practice message
delivery and drive behavior
change:
• Participants present their
stories using the new
techniques and receive peer
and facilitator advice
• Participants build their
confidence in the messages
and techniques
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Growth Team Membership™ research.
14
Establish Sales and Marketing Leadership Councils to drive ongoing application of
the value proposition
Sales and Marketing
Leadership Council
Charter
Purpose
• Run operations
reviews of each
vertical market
• Build and
maintain trust and
transparency
Responsibilities
• Monitor the state
of the business
• Examine sales
and marketing
effectiveness
Meeting Schedule
Monthly for four hours
Sales and Marketing Leadership Council
Manufacturing
Healthcare
Service &
Distribution
Retail &
Hospitality
Public Sector
Marketing
Sales
Attendees:
Director of Marketing;
VP, Enterprise Marketing
Attendees:
Area VP, Sales; Director
of Sales Management
Attendees:
Director of Product
Management
Attendees:
Director of Services
Value Proposition
Support:
• Develop Stories with
Contrast for Sales
• Provide presentation
templates
Value Proposition
Support:
• Conduct follow‑on
training
• Provide customer
success stories to
marketing
Value Proposition
Support:
• Align the product
roadmap
• Ensure development
plans address
customer issues
Value Proposition
Support:
• Train services staff
• Ensure the customer
experience reflects
the promised value
Example:
Spot-check sales
presentations for
consistency with brand
messaging
Example:
Video mock sales
presentations using new
messaging techniques
and provide feedback
Example:
Use customer review
panels to confirm
innovations reflect the
voice of the customer
Example:
Certify services staff so
they communicate the
same value proposition
to customers
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Product
Services
Growth Team Membership™ research.
15
Business Results
Percentage of Sales Force
Using Power Messaging® Techniques
yltne
ts
isnoC
(Survey of Kronos Sales Force)
Somewhat ConsistentlyVery Consistently
8%
Very Consistently
yreV
(Survey of Kronos Sales Force)
yltne
yltne
tsisno
C
tsisno
C tah
Consistently
21%
Impact of Power Messaging®
Techniques on Closing Business
wem
Some Impact
4%
Significant Impact
16%
oS
Somewhat Consistently
Consistently
71%
80%
High Impact
Annual Revenue and EBITA*
$820
$800
$780
$760
$740
Revenue $720
($ Millions) $700
$680
$660
$640
$620
$600
$250
$200
$150
$100
Revenue
EBITA
EBITA
($ Millions)
$50
FY 2008
FY 2009
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
FY 2010
FY 2011
Projected
$0
*EBITA is earnings before interest,
taxation, and amortization.
Growth Team Membership™ research.
16
GTM Members can access the full 14-page Best Practice Guidebook
Best
1
growth team m e m b e r s h i p™
best practice guidebook
best practice guidebook
growth team m e m b e r s h i p™
growth
team m e m b e r s h i p™
Practice
Guidebook
2
3
Kronos’ marketing leadership works with Sales to revitalize
Sales & Marketing:
Revitalizing
the
Value
Proposition
key takeaway:
Pressure-test
your
market
understanding
and value proposition
the value
proposition
and
create
differentiated
sales messages
Creating and
a New Value Proposition
Marketing commissions a market assessment
to Embedding
gain
perspective on the category and Kronos’ position within it…
guidebook summary
Download the complete
Revisit Existing Value Market Assessment
Create New Value
Proposition
Firm: Kronos Proposition
Best Practice Guidebook
Industry: Software Services and Applications
at your Growth Team
Situation
Headquarters: Chelmsford, Massachusetts, United States
Membership™ client portal.
Geographic Footprint
: Global
Kronos
management believed the firm was the market
The Guidebook includes:
Ownership: Privateleader, but product revenue growth was flat despite
category growth. Therefore, Kronos commissioned a
Revenue (2010): ~$750
million
USD of the workforce management
third-party
assessment
Objective
Objective
• Full content and guidance
market.
Conduct a baseline assessment
Develop differentiated value
Problem:
of the current value
proposition’s
proposition
Objective
• Key Lessons Learned
Slowing
product
growth
forces
Kronos’
marketing
and sales organizations
strengths and weaknesses
to create and deliverCapture
a differentiated
value
proposition.
the
current
state
of
the
workforce
management
• Tools and Resources
category by analyzing:
Solution:
Section
• Market size
Sales and Marketing collaborate
to:
…and then conducts a workshop
to craft new brand positioning
Develop Sales Brand Positioning Workshop
Drive Sales Force
Messages
Adoption
Participants
Senior sales and marketing executives participate in a one-day
workshop
Objectives
• Audit existing marketing messages and collateral to
determine extent of competing messages and identify steps
to rectify
Objective
Objective
• Develop preliminary
Governing
Brand adoption
Ideas (GBI)oftonew
Translate the value proposition
into
Achieve 100%
Resources
Required:
The GBIbywill
serve
as the
sales force messaging be tested in focus groups.
messaging
sales
force
• Marketing leadership (CMO
and direct
reports) to
initiative
overarching
brand positioning
forlead
a newthe
value
proposition.
and engage sales leadership
The workshop employs three criteria for the GBI:
• A branding and messaging
agencyKronos’
to rununderstanding
focus groupsof the workforce
1. It conveys
• A consulting firm to train
the sales category
force to deliver differentiated
management
Activitiesmessages 2. It is simple and directActivities
customer
• Conduct Power Messaging®
• Conduct
Power over-promise
Messaging®
3. It reflects Kronos’ ability
to help—doesn’t
Applicability
of Bestwith
Practice
to Executive Functions:
Workshop
sales and
Workshops with entire sales
Activities
• Competitive landscape Activities
• Evaluate
the market
existingassessment
value proposition
• Perform
• Conduct Affinity Diagramming
• Customer segments
• Create
a
revised
value
proposition
and promote
it companywide
to identify customers’
• Conduct brand• Kronos
positioning
brand awareness and exercise
brand associations
through
a
Foundational
Messaging
Guide
Function
Applicability
Business Issues (CBIs)
marketing
leadership toPreliminary
update Governing
forceBrand Ideas (GBI)
workshop • Purchase consideration factorsCritical
for Kronos
• Translate
the value proposition
sales messages
messaging and techniques
• Pinpoint
how Kronos
• Establish Sales and Marketing
Marketing
• Run customer/prospect
focusinto compelling
Need to
revise brand
• Encourage
of new messages and delivery
techniques
the CBIspositioning to appeal
uniquely
addressesbythese
Leadership Councils by vertical
Findings
groups adoption
Sales Leadership
“The experience to market
sales force
and translate into a value
to both segments
know it’s complex. The
proposition
3Two customer segments exist:
expertise to simplify it.”
Business Results:
- Ease-of-use buyers who value straightforward
• Since 2008, Earnings Before
Interest,with
Taxation,
Amortization
implementation
low costand
of ownership
(50%)
(EBITA)
“Workforce
Outputincreased 36%
Output
Output
Output
- Functionality users that
value advanced
management
features
(50%)
• 92%
of Kronos’
sales force
consistently
use•the
new Business
customerIssues (CBIs)
• Market
assessment
Critical
• New messaging techniques
• Salesdoesn’t
force adoption of
have
to
be
so hard.” messages and
messages
but growing
slower than
Kronos is the market leader, and
key differentiators
customizable
• Focus group findings
• Portfolio of customizable
the market
techniques
• New value proposition
messages
• Governing Brand Idea (GBI)
Kronos lacks a compelling •category
positioning:
• Industry-specific
Sales
“Simple solutions
thatand
Foundational
Message Guide
- Lower than expected awareness
work hard.
”
Marketing
Leadership
Councils
(FMG) and
consideration rates
to drive ongoing adoption
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
- Fractured and diluted brand messaging
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Source: Kronos; Growth Team Membership™ research.
Source: Kronos; Growth Team Membership™ research.
Growth Team Membership™ research.
17
Register for a webinar with Charles DeWitt (Kronos Inc.) and Tim Riesterer
(Corporate Visions)
Ask the Thought Leader Webinar
Sales & Marketing: Revitalizing the Value Proposition
Tuesday, 27 September 2011
11:00 ET
(Duration: One Hour)
REGISTER for Free at http://www.frost.com/ATL
Charles DeWitt
Tim Riesterer
The webcast will feature:
•A best practice case study that shows how Kronos’ Marketing and Sales developed and
delivered effectively a differentiated value proposition
•Key lessons learned and Q&A with Charles DeWitt, VP—Enterprise Marketing and Tim
Riesterer, CMO
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
Growth Team Membership™ research.
18