Tag: Whitespace analysis

Whitespace in Business: All about using whitespace analysis

Attracting new customers can be five times more expensive than retaining existing ones, according to a Forbes survey. The rush to increase market share makes organizations throw money at new customers, not realizing that their loyal customers might get disillusioned and leave. The effect is more apparent in B2B circles – retaining and nurturing current clients provides better return on invested time and money. Also, the process of helping current clients can reveal new areas of opportunity that can be beneficial to both parties involved. Such unseen opportunities, or white spaces, are almost everywhere in business interactions, waiting to be seized. What does WhiteSpace mean in business? The process of identifying gaps between what is being provided to a customer, and what can be provided to them using other solutions of the provider – is known as the process of white space analysis in businesses. Using sales data, organizations can identify opportunities to cross-sell and upsell, where customers are offered features that improve upon their existing/previous purchase. The process also requires thorough knowledge about the industry, competitors, stakeholders, and the solutions being provided. Insights into emerging industry trends. Executed correctly, white space analysis guides sales teams in identifying ideal customers for their organization, and offers them solutions that are aligned with their goals or issues. How Does White Space Analysis Work? The process starts with identifying gaps and highlighting potential areas that can be addressed, and is known as white space mapping. There are two types based on the way the mapping is focused on – internal and external. Internally focused mapping identifies the strengths of the organization’s solutions/products, and lists the strengths, opportunities, and areas of concern. Internal mapping helps highlight market barriers, and teams can work towards addressing the obstruction by offering new solutions, modifying existing ones, or targeting a different section altogether. Externally focused mapping lists the products or services that are succeeding in the market, analyses the ones that are failing, and identifies where potential gaps are. Key areas of focus during whitespace analysis Whitespace analysis is all about looking for value where others think none exists, and it can happen only if sales team members are actively sharing and updating the information they have about customers. This differs from the typical account management process, which can be represented as below: This institutional know-how, with the help of key account management software, can be structured into an enterprise memory that can be used by any and every member of the team and take up from the last interaction. The process requires teams to consciously focus on the customer and the business, and here are a few pointers for the same: 1. Arranging and understanding current data Previous purchases of customers is a good place to start, as it provides details on the services that customers need. Details like opportunity type, industry, account type, products used – can provide information about a customer’s state, and the details can be used to highlight pain points and how products from vendor organizations can solve them. For existing customers, the incremental charge they may incur to use the new feature/product should be clearly communicated. 2. Limiting market scope Sales executives joke about ‘anyone and everyone’ being their target audience; while this helps teams reach a wider variety of users, there are few products and services that are universal. Customers who end up disappointed because of wishful marketing can lead to bad word of mouth and lower sales. Clearly defining the target, therefore, holds a lot of importance. Identifying customer challenges, gaps between product and customer workflows, what consumes the customer executive’s time, and many other factors direct the retargeting efforts. 3. Keeping an eye on what competitors are doing A common misconception is to think of white space as an area where no competitors are present. This is never the case. There are several competitors almost always, and analysing their marketing tactics can reveal their strengths and weaknesses. Comparison to the expected customer profile/solution to their organizations, gives sales team members a way to identify the gaps in their solution. 4. Treating current customers the same Sometimes when vendor organizations try to  pitch for a substantial business, their existing clients might run into issues that need immediate attention. Learning and understanding their needs can also reveal potential white space opportunities. By asking the customers about improving their everyday workflow, sales teams can shortlist features and ideas that can improve overall experience. Opportunities for optimization, tweaks, or adding new features exist even in the most efficient companies. Being proactive assures customers that vendor teams are on the job all the time, and being receptive to feedback and responding quickly with a detailed response drastically increases the chances of them renewing their contracts. 5. Treating all new opportunities the same Since white space refers to the untapped areas of engagement with current customers, chances are teams ‘taking it easy’ are high. After all, they know the customers, or at least most of what is there to know. But after finding the right target and product, the next step is to leverage the data – no matter how well-acquainted the customer is. In fact, the pre-existing relationship can speed up matters, when sales team members directly reach out to the potential customer and set up a meeting. Other avenues, like retargeting them via marketing efforts or creating a product, service, or feature to address their problems can also take the relationship forward. Benefits of White Space Analysis Whitespace analysis leads to a better understanding of the buyer. Identifying the target market becomes easier, their pain points become apparent, and the overall customer buying journey can be analyzed. The knowledge gained from whitespace analysis can guide sales teams to customize their sales pitch to address specific customer needs. Identifying new customers and segments paves way for the expansion of the offering into newer markets. Increased customer insights can help  decide the target, the value props that should be highlighted, if the solution for the white space is viable, the effort