New modular proposition

LeasePlan, one of the world's largest fleet management companies, is a market leader in the enterprise segment, served by key account managers, and also has an excellent online offering for individual clients. LeasePlan wanted to develop a new modular proposition to better serve medium-sized companies, which consist of a large group of customers with fleet sizes of several dozen cars.

These customers require more assistance than small individual clients that are served with LeasePlan's standardised online offering, but are too small for a tailor made offering from a dedicated account manager. The challenge in this market segment is to strike the right balance between a complete offering, a personal approach, and a competitive price. Could LeasePlan leverage its market-leading position to develop a game-changing proposition for these demanding customers?

The challenge

LeasePlan envisioned a modular 'Configured-to-Order' approach as the ideal basis for the proposition. However, this was an industry first and came with numerous assumptions. We identified the critical assumptions to test:

• It is feasible: We can offer a Configured-to-Order product that is better and more cost-effective than tailor-made products.

• It is desirable and valuable: Our customers prefer this product over tailor-made alternatives.

• It is viable and profitable: We can offer this product to customers at better rates than tailor-made products, while achieving the highest profit margin across all product categories.

If we could find reliable, positive evidence for all of these assumptions, we would have the foundation for a game changing innovation.

The process

1) Analyse market and value chain

Performed an extensive analysis of the market and current/future value chains, factoring in industry trends. This assessment revealed crucial threats and opportunities in the lease sector.

2) Identify customer needs

Conducted in-depth interviews with ten fleet managers, including those from both won and lost deals, to thoroughly understand their requirements and pain points.

3) Define value drivers and value proposition

Identified the most relevant value drivers for LeasePlan’s key customers: CFOs and Fleet Managers. On this foundation we built a modular value proposition that addressed key customer needs and clearly differentiated LeasePlan from competitors.

4) Make business case

Created a comprehensive business case to demonstrate the financial viability and potential profitability of the new offering.

5) Validate and refine value proposition

Tested the value proposition with potential customers and incorporated their feedback to further refine the offering.

6) Define go-to-market and sales approach

Crafted a targeted go-to-market strategy and sales approach with accompanying materials to effectively reach and convert SME customers. To ensure authenticity and effectiveness, we tested, validated, and refined these materials in live sales meetings.

7) Launch new proposition

Successfully launched the new proposition in the market, supported by a well-planned marketing and sales campaign.

The result

• A clear service portfolio structure with a modular build-up, enabling LeasePlan to offer a very comprehensive package to their customers at an unbeatable price.

• A strong, differentiated offering for different types of customers in the SME segment: LeasePlan EasyPackages.

• A new sales methodology, including marketing materials, that results in more successful acquisition and a more efficient quotation and fulfilment process.

Impact on LeasePlan's customers

• Customers gained access to a tailored fleet management solution that met their specific needs without the high costs associated with fully customised offerings.

• The modular structure allowed customers to select the services they required, resulting in increased flexibility and cost-efficiency.

Impact on LeasePlan's business

• The new offering enabled LeasePlan to effectively tap into the previously underserved SME segment, leading to increased market share and revenue growth.

• The 'Configured-to-Order' approach resulted in improved operational efficiency and higher profit margins compared to tailor-made solutions.

LeasePlan was able to acquire new customers as well as convert existing customers in this segment. 85% of LeasePlan's existing customers preferred the Configured-to-Order proposition over a tailor made offering. After a successful introduction in The Netherlands, EasyPackages were rolled out internationally.

The customer's response

"The support of Deborah and Martin was key to the successful development and launch of our new modular product offering targeted to the mid-end market. It was fun working together with these consultants, who quickly understood our market and provided both a pragmatic and original approach to link product modules to customer needs." · Marketing director