You have to offer more than just machines and services, says Peter Klein. It's all about the customer journey and the user experience. At its core, it's first about interacting with customers, then about providing the right solution. As a marketing and sales expert, Peter Klein reviews and optimizes marketing and sales processes in companies. Whether in B2B or B2C, the expert believes that “networked concepts are needed. In the best case scenario, you offer your customers an entire ecosystem of products and services.” What does it take to develop this? And why is a good CRM database not enough?
How to move from “techie” to “customer centricity” thinking: Peter Klein provides seven basic recommendations for the customer journey in mechanical engineering.
Mr. Klein, we spoke a while ago about customer centricity and the customer journey in B2C—more specifically, how the OTC industry can better reach its target groups. Today we're talking about B2B and the customer journey in mechanical engineering. Is the customer journey in B2C very different from that in B2B?
Yes, absolutely. The customer journey describes the phase from the first contact with a company to the purchase and repeat purchase. With consumer goods such as OTC, the customer journey is much more spontaneous. Your products are not as complex as those in mechanical engineering. And consumer goods are not used for as long as machines, which are purchased for several decades. So the complexity of the products is what makes the difference in the customer journey. But what doesn't make a difference – or shouldn't make a difference – is the concept behind it: in my opinion, the customer journey from B2C can be transferred to B2B.
Do you think the mechanical engineering industry has some catching up to do in this area?Yes.
Why is that? Why do you think the German mechanical engineering industry still offers too little in terms of customer journey?
Because for a long time, it simply didn't need to think about it. But now it has to. To explain: mechanical and plant engineering is one of Germany's core industries. It has a very long tradition and an excellent reputation. The industry is also very large. It consists of extremely good companies and has many hidden champions. In 2023 alone, the German mechanical engineering industry employed 955,000 people. And for many decades, it had a unique selling point: “Made in Germany” carried weight. It was all about technological progress, quality, and durability.
And today?
Today, as in recent years, other dynamic manufacturers, especially in the Far East, have caught up enormously—think of China. While the quality of Chinese products has improved, innovation cycles have also become shorter. The argument of robust, durable German products is therefore no longer as strong as it used to be. In addition, machine manufacturers' customers are increasingly focusing on short-term return targets. And long-lasting, expensive machines no longer really pay off in this regard. That's why I think German machine builders need to focus more on the customer journey. Their goal should be to build a better understanding of customer needs. Very few have done that so far.
Among other things, you are consulted by companies to review and optimize their marketing and sales processes. Is the customer journey more closely linked to marketing?No, that's a fallacy. The customer journey is the result of the networked work of many internal departments: Sales, for example, has a different understanding of customer needs than the service department. And the service department has a different understanding than marketing. The customer journey must be viewed as a holistic element. As an umbrella under which each department has the task of sharpening its focus on customer needs and optimizing its work accordingly.
How do you experience companies: Are they open to the topic of customer journey or rather skeptical?
In general, I see many companies under pressure. Conditions have changed. Parallel to competitive pressure, customer information behavior has also changed: 60 percent of purchasing decisions are not made during personal contact, but long before. Many companies are aware that they need to find new approaches, but there is still a certain skepticism about the topic of customer journey. It is often said that customers are so different that it is hardly possible to develop a customer journey that appeals to everyone. I also hear that the concept of customer journey works better in B2C and cannot be transferred to B2B.
What is your response to that?
That it is definitely possible – even 1:1. Of course, a customer journey in mechanical and plant engineering has to be applied to far more complex products – and that is admittedly no easy task – it requires research and meticulousness – but customer knowledge is an enormously important key. I therefore strongly advise companies to take a closer look at their customer groups – who they are now and who they will be in the future.
That sounds a bit like the slogan “Vorsprung durch Technik” (advance through technology) is being replaced. Will it be “Vorsprung durch Kundenkenntnis” (advance through customer knowledge) in the future?
That's exactly what it's all about. For years, the product was the focus – and that is still extremely important – but the fact is: The products manufactured by German machine builders are now also available in other countries and from other manufacturers – in some cases even at much lower prices. Many German manufacturers have therefore implemented cost-cutting programs, but they will still not win the price war. Other companies, on the other hand, have invested heavily in innovation, but innovation cycles are becoming shorter and shorter. It is therefore crucial for the future that companies think in a customer-centric way. They need to change their mindset.
Steve Jobs said many years ago: “You've got to start with the customer experience and work backwards to the technology.” Apple's strategy and vision asked what immense benefits their customers would gain from buying Apple products. Not, “What do our developers have to offer and how can we market the product?” but “Where can we take the customer?” In short, mechanical engineering companies must move away from a purely ‘techie’ mindset to a “customer-centric” mindset.
What does this mean for German mechanical engineering companies?
On the one hand, they will no longer just ask how they can reduce their costs. They will also have to ask how they can reduce costs for their customers. It will no longer be just about the machine, the product itself, but increasingly about how companies solve their customers' problems – on the one hand through their products, of course, but on the other hand – and increasingly – through their services.
What customer problems do you see in the companies you advise?
As many different ones as there are customer segments. Some customers want to avoid downtime, for example, while others are most concerned with rapid problem resolution. Purchases are not ideal for all customers either: some customers prefer to rent machines as needed. For manufacturing companies, this means that they also need to think more about complementary services. There is a colorful bouquet of services that manufacturing companies can use to help their customers get the most out of their machines.
Before we get to specific ideas and measures, what is your experience as the very first business step in developing a customer journey?
As I mentioned at the beginning, the customer journey is a cross-departmental task. Recognizing this is, in my view, the first business step. Companies need functional teams with different disciplines that pool their knowledge – for example, in customer journey mapping. This involves jointly developing personas, identifying touchpoints, segmenting customer groups, recording customer needs and expectations, and conducting social listening in order to understand customers in the first place – and then deriving clear tasks for the company from this. The process is so important because companies learn to engage intensively with their customers and their realistic requests in a networked manner, regardless of where these requests originate: whether in person at a trade fair, via an online survey, in a personal phone call, or even as a comment on social media posts. Ideally, all this information is bundled in a CRM system – an important tool, but one that only becomes profitable when the data it contains is translated into business actions.
What are some key questions for further measures? What ideas and tools can help in the review process and later in implementation?
- Do we cultivate a customer-centric culture? And if not, how could a customer-centric mindset be established and promoted within the company – led, of course, by senior management? Internal training and development can be crucial in this regard.
- Is our message consistent across all channels? In other words, do all departments and everyone who comes into contact with customers speak the same language? Are manuals designed with the target audience in mind, for example?
- Do our customers receive the information that is relevant to them at every touchpoint? If not, what specific gaps need to be closed? And how should the content strategy be developed?
- What is the status of the individual customer segments and their satisfaction? Companies should take targeted measures, such as regular customer surveys, to get to know their target groups better and identify their needs. This can be done in person, directly during customer visits, by telephone, or online via email surveys. Commissioning market research institutes can also provide valuable insights. Further measures can include working groups with customers and workshops organized by companies.
- The right technological support.
Website traffic analysis tools, for example, can help to review digital touchpoints: They visualize user behavior by measuring bounce rates, among other things. These insights ultimately help to optimize content and create a better user experience. When it comes to technological solutions, however, I also think about the customers: Could a digital twin, a digital replica of a machine, be created for them, for example? This would even allow them to configure their machine themselves. Or what about software migration? AI-supported production recommendations? Or cyber security? These are all major and highly relevant issues that will continue to preoccupy customers today and in the future. Couldn't mechanical engineering companies offer them technological support via a partner network? - What are our KPIs? It may come as a surprise, but I still find that business objectives are not translated into KPIs, tracked, and measured. Without targets, without KPIs, there can be no success.
- A customer-centric, creative mindset is the key to new measures and offerings. Based on all the key questions and review processes, companies will be able to identify the priorities of their current and future customers in their decision-making. This requires networked concepts: in the best case, you offer your customers an entire ecosystem of products and services. Today, the concrete answer to “How can we solve our customer's problem?” may mean: We offer financing services. We offer complementary business models, rental and subscription services. But we also offer consulting services, for example on recycling and compliance with ESG criteria. We invite them to product training and education. We create a digital twin of their machine." If customers feel understood and valued, they will choose the company that shows them empathy, interest, and offers them tailor-made solutions.
There are certainly best practices from the mechanical and plant engineering sector: Which elements of the customer journey do successful mechanical engineering companies use? What measures have been implemented in practice?
I think all mechanical engineering companies that are successful in the market are already well on their way to a successful customer journey. I have observed that some companies, for example, have board members who come from different industries, including consumer goods. This brings a wide range of experience to mechanical engineering companies. In some cases, departments with expertise in user experience (UX) are also being expanded. When it comes to target group and customer-oriented thinking and the associated measures, some companies rely on collaborative tools that enable them to work with their customers digitally, but still directly. Co-creation and design thinking workshops are now also part of the training program. But they also serve as a source of mutual inspiration. Overall, these are offerings that clearly signal to customers: You are important to us. We are interested in you and we work with you to develop tailor-made products and services. Designed to make your work better and easier.
Thank you very much for your insights, Mr. Klein.
What questions do you have about the customer journey? Get in touch with us! We look forward to hearing from you.
