Client Background
Our client is a mid-sized software company
specializing in project management software primarily used in the construction industry.
While they have been successful in their niche market, they recognize the need
to expand their TAM to drive further growth.
Problem Statement
The company was facing the challenge of
limited market penetration due to their niche focus. They needed to find new
markets and customer segments to expand their business.
Strategy
and Implementation Advised
1.
Market Research and
Analysis
·
For the company we conducted
extensive market research to identify potential markets and customer segments
outside the construction industry that could benefit from their software.
·
With extensive expert
interviews and man + machine approaches, we analyzed market size, growth
potential, and competition in these new markets for our client
2. Product Diversification:
·
We advised company to diversify
their product offerings to appeal to a broader audience.
·
In line with this, they
developed new versions of their software tailored for industries such as
manufacturing, healthcare, and finance, ensuring it addressed specific needs in
each sector.
3.
Marketing and Sales Expansion:
·
To drive the efforts and expand
the customer reach, we advised company to revamp their marketing strategy to
target the new industries.
·
They hired industry-specific
sales teams with expertise in manufacturing, healthcare, and finance to
effectively reach potential customers
4.
Strategic Partnerships:
·
With the aim to expand tam and
define as well as tap into new segments we helped company to adopt inorganic
strategies.
·
This mainly focused on forming
external partnerships with industry associations, trade shows, and influential
players in the target markets to enhance their credibility and reach
Value Delivered
1. Increased Total Addressable Market:
·
The company's revenue increased
by over 22% within the first year of targeting new industries, and this growth
continued to accelerate in subsequent years
2. Revenue Growth:
·
The loyalty program garnered a
strong following, with 40% of customers participating. This translated into
repeat business and higher average order values.
3. New Customer Acquisition:
·
By the end of the tenure the
company successfully acquired new customers in manufacturing, healthcare, and
finance sectors, reducing their dependency on the construction industry.
4. Enhanced Brand Reputation:
·
The strategic partnerships and
industry-specific sales teams helped enhance the company's reputation and
credibility in the new markets.
Note –
The duration of above stated advisory project is of one year.
Impact triggered by Flair Insights
Work:
Our client successfully expanded their Total
Addressable Market by conducting thorough market research, diversifying its
product offerings, and implementing targeted marketing and sales strategies.
This expansion allowed the company to tap into new industries, drive
substantial revenue growth, and reduce its reliance on its original niche
market. By staying adaptable and responsive to market opportunities, the
company positioned itself for continued success in a competitive software
industry.