Background and Challenge
L.E.K.’s client, a provider of data backup and recovery solutions, was struggling with customer perception issues related to its legacy products. The company asked L.E.K to understand the customer segments that were in the company’s “sweet spot,” to determine specific strategies to drive customer acquisition and retention, and to determine best practices for improving its performance in engaging its channel partners.
Approach and Recommendations
L.E.K. interviewed management to gain context and formulate hypotheses, reviewed secondary research reports and interviewed market participants to gain perspectives on the competitive environment, customer preferences and perceptions of the client’s business. L.E.K. also fielded an online survey of customers and channel partners and conducted cluster analysis to segment the customer base according to characteristics of their IT environment.
L.E.K. segmented the client’s customer base into four distinct customer segments with different data backup & recovery (DB&R) needs; the segments varied in terms of FTEs, data volume, degree of virtualization and degree of cloud adoption. The client received a breakdown of the market, prioritization of customer segments and a detailed implementation plan to optimize channel engagement. Overall, the project provided the client with clarity around the customer segments that most resonated with the company’s strengths, and recommendations for optimizing its channel strategy to more effectively target these customers.