Retail BPS Consulting Growth Plan

Go-to-Market (GTM) Series

This week on Outside In, I am introducing a new type of content broadly christened as the GTM (Go-to-Market) Series. In this GTM Series, I am planning to share real “snippets” of my knowledge work from past experiences – insights, ideas, strategies, roadmaps, planning, industry analysis and so on – from actual deliverables (read: decks) that I have shared with industry colleagues, work peers, partners, events and the like – related to specific conversations and topics. I will obviously update these knowledge pieces for current context, as well as compile one that reads better in this newsletter format.

The idea behind sharing these nuggets of experience is to simply share ‘what I knew best’ then – which may be useful for some even today. As a knowledge worker, I believe that knowledge expands when you liberally share what you know, periodically wipe out what you knew and have a clean plate to accumulate new stuff. There’s no point in keeping these fantastic work documents in my hard drive, to fade away into obsolescence. Let’s see if you find this useful.  Kindly do let me know your feedback.   

My 1st write-up in the GTM Series is a Growth Planning exercise that I had done for BPS (Business Process Services) Business Unit – focused on the Retail Industry – for a Technology Services Company.

Here goes…

1) Context

  • XYZ BPS was a $300 Million Practice, with its own Management Consulting Practice which was $2 Million big in 20XX

  • BPS Management Consulting Practice business plan aspired to be $30 Million entity by 20XX, growing from 70 people to 150-200 people

  • Focus verticals included: Telecom, BFSI, Retail (includes E-commerce), Hi-Tech, Healthcare & Lifesciences, Energy & Utilities, Etc.

  • Current services offered include: Business Transformation, F&A, Asset Management, Packaging, Source to Pay, Etc.

  • New focus service emerging strongly was Digital Customer Experience

  • In omnichannel retail world, E-commerce is considered to be part of the Retail practice only

2) Focus for BPS Consulting

Aligning with an Accenture Strategy study on economies of the future, the next decade imperatives for Retail (and CPG) players were taking active part in the:

  • Sharing Economy: An economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the internet

  • Personalization Economy: One-to-one marketing or individual marketing, is a marketing strategy by which companies leverage data analysis and digital technology to deliver individualized messages and product offerings to current or prospective customers

  • Replenishment Economy: A world where most of the devices, products and even surfaces around us are imbued with intelligence that allows them to determine and act on our day-to-day product requirements. In the replenishment economy, the refrigerator becomes responsible for ordering more margarine, milk and eggs.  The dishwasher is responsible for replenishing detergent.  Our automobile becomes responsible for ordering new tires once tread depth falls below a safe level. The grunt work of shopping for routine items will done by our devices.  We will need only to approve, reject or modify the order before it’s sent off and fulfilled

  • Services Economy: It is an economy where the primary economic activity is the provision of services rather than the production of goods

To stay competitive in the Next Generation of Retail, Organized Retailers had 4 Priorities:

  • Sales Transformation: Digitize themselves & build an integrated omnichannel organization fast

  • Customer Retention: Build a seamless Customer Experience ‘differentiator’ with the Store in the middle of it

  • Operational Efficiency: Doing more with less – Re-wire existing business solutions with digital tools and enablers

  • Investment Optimization: Maintain ROI of their investments above, due to constrained funds and  stretched cash-flows

3) My Point of View

a) Understand the Omnichannel Retail Ecosystem and its impact on CXO Agenda

Consult Retailers to improve customer impact across all touch-points of a Customer’s Shopping Journey

b) Identify KPIs & KRAs of CXOs (Illustrative)

Impact Areas and Enhancement of a Retailer’s Focus-KPIs

  • Revenue per Customer (driven by One View of Customer)

  • Cross-channel Sales Growth (Balance Store sales with Online sales)

  • Customer Loyalty – CSAT, NPS, CVS

  • New Customer Acquisition

  • Omnichannel Operational Efficiencies (OOS, Fulfillment, Fill Rates)

  • Share of Wallet

  • Delivery TATs

  • Customer Resolutions – FTR, Automated Next Best Action

  • Cost Management – Cost of Sale, Cost to Serve, Lost Sales

c) BPS Consulting Solutions must address new Omnichannel Retail Ecosystem (Illustrative)

d) Go-to-Market Levers (Preliminary)

  • Exhibit global thought leadership and create assets

  • Create ‘use-case-led’ offerings – validate with known Industry leaders

  • Build alliances for delivering Product-based offerings

  • Establish POVs (Point-of-views), at Industry forums

  • Execute POCs (Proof-of-concepts), with select organizations

  • Publish and promote outcomes of POVs and POCs

  • Collect recommendations and build WOM

  • Establish credentials and capability scores with analyst firms

  • Polish offerings and assets > Create an offering ‘brand’

  • Scale the practice and experience

4) Align Offerings with Retail BPS Landscape (Gartner Hype Cycle)

I carried out a Self-Analysis of Retail Focus from entire BPS Hype Cycle, to determine the nature of Offerings to be developed and taken to prospect Clients:

5) Align the Traditional and Digital Offerings for Retail BPS

Traditional BPS Solutions

  • Customer Service

  • Up-sell and Cross-sell

  • Customer Analytics

  • Customer Loyalty

Digital Platform Solutions (S1-S8)

  • S1 for Customer Service Programs

  • S2 for Up-sell and Cross-sell

  • S3 for Customer Analytics

  • S4 for Customer Loyalty

  • S5 for Order Processing & Fulfillment

  • S6 for Web-based Support Services

  • S7 for Pre & Post Sales Support

  • S8 for Procure to Pay

6) Retail BPS Offerings Go-to-Market Approach

Take Focused Use Cases/Solutions to Market (Illustrative List Below) – Marry Digital Platforms & Traditional BPS Offerings

7) Growth Path – Preliminary Projections for BPS Retail Consulting Practice

In Conclusion

This ideation exercise helped outline a robust GTM Approach for a nascent Retail BPS Consulting practice, planned with a horizon of 3-5 Years – with a 4X Growth Path

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References and Sources

1) Sharing Economy: Google Dictionary

2) Personalization Economy: Personalized Marketing Wikipedia

3) Replenishment Economy: https://www.retailprophet.com/welcome-to-the-replenishment-economy/

4) Services Economy: https://study.com/academy/lesson/service-economy-definition-characteristics.html

5) My Own Presentation to a Technology Company