Dorsey & Company helped a utility resist customer erosion after a competitor undercut its price by 30%
In an unprecedented victory over a formidable competitive threat, Dorsey & Company helped a major utility resist customer erosion after a competitor undercut its price by 30%. Faced with significant competition from a dual distribution provider who held and leveraged a significant rate advantage in a contested area in Northeast Ohio, our client had determined it should leave the market altogether rather than fight so save customers.
Dorsey & Company developed a competitive strategy to first slow down customer loss and eventually begin to regain market share. This strategy utilized numerous advantages and tools at the client’s disposal, including regulatory, political, legal, service, and marketing. Without expending any additional dollars, and in fact reducing many ill-advised expenditures, the result was the stabilization of market share within the first six months of implementation, followed by subsequent increases in market share.
As a result, the competitor was forced to halt expanding its distribution network into other geographic locations and into an agreement to no longer pursue our client’s customers. Consequently, the client now owns more than 85% of that market space and maintains a dominant position vis-a-vis the competitor.
Channel management and segmentation targets most profitable customers and markets
An unregulated subsidiary of a large investor-owned utility engaged Dorsey & Company to develop a market entry strategy for a 13-state region.
The strategy required understanding and incorporating various unique elements for each state, including the regulatory framework, political climate, customer segmentation, and competition.
Our strategy targeted the most profitable and attainable customer segments in the various states and enabled the client to leverage current brand awareness and equity where available, minimizing costs and risk. The strategy also included a differentiated channel strategy for each region which leveraged known channel brand advantages and preempted competitor access.
As a result, the client holds a leading market share in every market area where it chose to operate.
D&Co. demonstrates value in segmenting small business markets
For a large Midwestern investor-owned utility, Dorsey & Company designed, implemented, and analyzed a market research study aimed at segmenting the client’s small business customer base.
The aim of this work was to expand the utility-customer relationship by segmenting otherwise indistinguishable customers based on meaningful characteristics, such as perceptions of the provider and the product/service; the importance of energy to their business; sophistication as to the use and management of energy; and requirement of their utility beyond simply paying for the energy.
The result was an action plan for targeting specific groups within the broader segment based on the opportunity for increased profitable product/service sales as well as expanding the relationship to build a brand and provide a more meaningful customer experience. The plan we developed also served to preempt competitors from penetrating this market with energy and energy-related products and services.
Twin-branding strategy helps utility client gain competitive advantage, even in the delicate regulated-vs.-unregulated space
Dorsey & Company developed a market strategy for building sales and revenue from a utility client’s “mass market” customer base. This strategy identified key characteristics such as brand preference/perceptions; product/service needs; and channel preferences.
The resulting plan allowed the client to utilize a twin brand strategy that leveraged the known regulated brand when utilizing the unregulated entity to build the relationship and sales. The strategy was sensitive to regulatory compliance and identified and leveraged opportunities within the regulatory framework.
The result was a highly profitable product/service portfolio for the unregulated subsidiary that targeted the best sub-segments for those services, building revenue and sales and preempting competitive entry.
Multi-tasking creates new product strategy and customer retention strategy simultaneously
Dorsey & Company developed a market entry strategy and customer retention strategy for a large southwestern investor-owned utility that wished to enter new markets for energy-related products and services.
Dorsey & Company assisted with the development of this product/service portfolio as well as identifying the most appropriate market segments and the best geographic territories for expansion. Simultaneously, Dorsey & Company assisted in a retention strategy within the current service territory that leveraged the existing brand advantages, as well as the political and regulatory environment.
The result was profitable penetration of chosen expansion markets and the preemption of competitive entry into the client’s current service territory.
Motivated employees = skyrocketing sales
Dorsey & Company developed recommendations and guided the implementation of refinements to an existing internal sales lead and employee incentive program for a leading telephone operating company such that sales increased over two years from $12 million annually to $90 million annually.