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Is NPS a useful indicator of a target acquisition’s value?

A recent Wall Street Journal article called attention to the “cultlike” following that NPS has garnered among CEOs in recent years. Their analysis found that in earnings calls by S&P 500 companies, “NPS” or “net promoter” were cited 150 times by 50 different companies. The article goes on to question whether companies have put too much emphasis on the one number system that is Net Promoter.

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Make better strategic investment decisions: Reduce decision bias in M&A due diligence

PE firms and corporate investors compete intensely for investments to expand their portfolio or augment their existing solutions.  In the due diligence process, decision makers face the dual pressures of accuracy in a high-stakes decision, and the need to work very quickly. Unfortunately, the time-pressure of makes these decisions vulnerable to the cognitive biases.

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Uncertainty: The hidden barrier in B2B markets

Many B2B purchases are delayed or abandoned due to the uncertain outcome of the decision. Prospects compare the certainty of the status quo (good or bad) to the potential (but uncertain) benefits of a new solution and opt for the “devil they know”.  The implication: B2B Marketing and Sales can help prospects reach a purchase decision by reducing uncertainty for the new solution, and increasing uncertainty of the status quo.

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Little Data: When B2B marketers don’t have access to big data

While B2B marketers wait for their organizations to adopt big data tools, they can leverage a range of cost-effective data sources to inform decisions that move their companies forward. The following are some of low-cost or free data sources (little data) B2B marketers, product managers and strategists can use to evaluate market opportunities, competitors, customer needs and overall market trends.

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Developing a mid-market strategy for your enterprise product/service

The mid-market is an unfulfilled market opportunity for many vendors that serve enterprise segments. Rethinking the needs of the mid-market can improve a vendor’s chances of succeeding with smaller customers.

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What is the expected life cycle of a cloud application?

Expected product life cycles have traditionally informed forecasts for software demand – they could be used to help estimate the number of organizations likely to be in play any given year because their solutions had reached their natural refresh cycle. The shift to cloud applications muddies the water in terms of this traditional forecasting approach.

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Better Forecasting with Historical Data and Judgment

A recent article on forecasting presents historical data and judgment as an either-or choice. We disagree. In our view, the art of forecasting requires both and the understanding of how much weight to place on each depending on the circumstances.

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Don’t throw out the data along with the failed concept

Product management and marketing teams often use primary research to test new product and service concepts. Before investing millions of dollars and years of development efforts they want to know if the concept has legs. Sometimes the research shows that the market does not have enough appetite for the concept to justify further investment. At that point the research has done its job. But often the results can provide additional value to the organization that is forgotten.

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Should M&A due diligence incorporate primary market research?

The due diligence process for mergers and acquisitions is intended to validate the decision and minimize risk.  Unfortunately the resources and rigor devoted to the activity can be undermined by common biases that distort reasoning.

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If organizations value it, why won’t they pay for it?

A client recently asked us this questions as part of a market sizing exercise. Fortunately this client asked the question before entering the market and was able to plan accordingly. The buzz surrounding new products or technologies often attracts established vendor that can find  after investing in a new category the market does not live up to their expectations in terms of market size or revenue growth. The disconnect stems from behavioral gaps in the typical market adoption curve.

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