Overview Many things done in organizations are primarily self-serving – There must be a benefit to the organization in order to justify the effort – “Ethno-centric” means emphasizing one’s own viewpoint or benefits – A self-serving approach ignores the reality of others’ roles in your success Customer profitability increases when win-win is built-in to every process – “Customer-centric” means customers are at the center of your decisions, not secondary – If customers are at the center of your service decisions but not your product decisions, it’s likely that your products will cause a lot of service costs (lower profits!) – This holds true for every process and policy across your organization – Self-serving approaches are ultimately costly; customer-centric approaches can minimize waste and increase organic demand, revenue and profit
Who Benefits Most from Your Approach? Your Customer ProgramsYour BenefitsYour Preventions Your RatingCustomer Benefits Customer Preventions Customer Rating Product Development - Revenue Generation - Product & Service Usage - Other- - Total - Customize this chart for your organization, using instructions on next pages
What Are Your Programs That Affect Customers? Your ProgramsYour Benefits Your Preventions Your Rating Customer Benefit Customer Prevention Customer Rating Product Development - Revenue Generation - Product & Service Use - Other Total - Identify Your Programs That Affect Customers 1. Examples of customer programs for: Product Development: advisory boards, user groups, ethnography, etc. Revenue Generation: CRM, 1-on-1, experiential, rewards, WOM, etc. Product & Service Usage: technical support, touch-points, upgrades, etc.
Your ProgramsYour Benefits Your Preventions Your Rating Customer Benefit Customer Prevention Customer Rating Product Development - Revenue Generation - Product & Service Use - Other - Total - How Does Everyone Benefit? Identify Benefits & Preventions 2. For each customer program, consider the outcomes, processes and policies relating to: How does the program benefit you? How does the program prevent negatives for you? How does the program benefit your customer? How does the program prevent negatives for your customer?
Your ProgramsYour Benefits Your Preventions Your Rating Customer Benefit Customer Prevention Customer Rating Product Development - S: L: S: L: Revenue Generation - Product & Service Use - Other - Total - Calculate the Benefit of Each Program Quantify the Benefits 3. Mark each benefit with an S or L to indicate short- or long-term benefit or prevention. 4. Rate each benefit or prevention: 5 = High, 4 = Medium, 3 = Low, 2 = Nominal, 1 = Superficial Benefits and preventions are additive Add the short-term benefits and preventions and write the sum in the Ratings column Add the long-term befits and preventions and write the sum in the Rating column
Return on Investment 5. Add the short-term ratings and then the long-term ratings in each column. 6. Calculate the ratio of your value versus your customer’s value: Your short-term total ÷ your customer’s short-term total = ________. Your long-term total ÷ your customer’s long-term total = _______. 7. Based on your analysis above, brainstorm improvements in customer-centricity: Who Benefits the Most? Your ProgramsYour Benefits Your Preventions Your Rating Customer Benefit Customer Prevention Customer Rating Product Development - Revenue Generation - Product & Service Use - Other - Total - S: L: S: L:
Opportunities to Increase Customer-Centricity Use your chart as a change management tool to engage program managers and executive sponsors. Remind everyone that there’s always more than one way to do something! Remind everyone that first providing value for customers (when it’s less of a hassle and more of a joy to do business with you) enables you to reap value from more organic customer demand Brainstorm and implement ways to make everything you do provide more benefits and preventions for your customers primarily, and for you secondarily: – For anything that requires effort from customers, make sure they get ROI. – Time your process cycles to correspond to customers’ timelines. – Adjust your policies to make things easier and intuitive for customers. – Adjust internal policies, processes and deliverables to improve empowerment of customer-facing professionals. – Make sure customer-facing professionals and other customer touch-points have an efficient way to forward information to the right place across the company and quickly get meaningful answers back to customers. – Think “prevention” – especially when it comes to hassles for customers. – Pretend a customer is in the room when you make decisions.