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C USTOMER A DVISORY B OARD. ORG SAMPLE Business Case.

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Presentation on theme: "C USTOMER A DVISORY B OARD. ORG SAMPLE Business Case."— Presentation transcript:

1 C USTOMER A DVISORY B OARD. ORG SAMPLE Business Case

2 A GENDA 1. Why develop a CAB ? 2. Recommended Approach 3. Budget Required 4. Quantifiable Benefits 5. Next Steps

3 W HY FORM A C USTOMER A DVISORY B OARD (CAB)? CustomerAdvisoryBoard.org research found the following benefits accrue to organizations that use a CAB: Early warnings of shifts in customer needs and emerging opportunities (Market Research) New Product Development feedback (Innovation) Less customer attrition and churn, especially among CAB members (Customer Loyalty) Advice on approaching and appealing to similar customers, including referrals (Sales) Intelligence on competitor's tactics and strategies - what’s working and what’s not (Market Intelligence) It's well known that the top 20% of clients typically generate 80% of revenue… keeping and finding more companies like them is critical to growing any business

4 R ECOMMENDED A PPROACH 4 meetings annually Jeff Smith - Executive Sponsor Dave Jenkins, Head of Key Accounts to nominate potential members Representative from Marketing, R&D, Customer Support to meet monthly as steering committee Success metrics agreed and published quarterly among Executive Leadership team CEO to kick-off first CAB meeting CAB members to control Agenda Our role is to LISTEN 80% and talk 20% - its about them, NOT a sales pitch…

5 A NNUAL B UDGET R EQUIRED # Meetings Per Year3 # CAB Members7 Average Travel Reimbursement $ 500 Average Hotel Costs $ 250 SUB TOTAL $ 15,750 Total catering cost per meeting $ 750 SUB TOTAL $ 2,250 Internal Overhead rate per hour $ 100 Internal hours spent planning each meeting4 SUB TOTAL $ 1,200 Educational/Team Building Exercise $ 1,000 # per year1 SUB TOTAL $ 1,000 GRAND TOTAL $ 19,200

6 Q UANTIFIABLE B ENEFITS ObjectivesMeasuresResults To DateAssumptionsBusiness Value SALES Customer Referrals Gather 1 referral per CAB member at each quarterly meeting 12 referrals, leading to 3 new salesAverage sale = $1m $ 3,000,000 Prospects Database Increase prospects in sales database by 10% by identifying new target markets Sales prospect database grown by 6% 5% chance of closing a prospect $ 2,000,000 Average Customer Spend Increase average spend by 15% among CAB members by better understanding their unmet needs 16% increase in CAB member Account Values Each CAB customer spends $500k annually $ 3,000,000 MARKETING Success Story Press Releases Gain agreement from 10 customers on joint press releases 7 joint press releases finalized5 press releases = 1 sale $ 1,250,000 Event Plannning Synchronize marketing budget with 5 events being attended by CAB members4 events10 events = 1 sale $ 400,000 Customer Speaking Opportunities Gain agreement from 3 CAB members to speak at Customer Conference3 speakers6 speakers = 1 sale $ 500,000 CUSTOMER LOYALTY Customer Retention outside of CAB Increase customer retention rates by 5% overall by implementing practices identified through CAB100% achievementNone $ 2,100,000 Customer Retention within CAB Secure annual contract renewals from all CAB members100% achievementNone NA

7 Q UANTIFIABLE B ENEFITS ObjectivesMeasuresResults To DateAssumptionsBusiness Value INNOVATION New Product Development Create one new product concept to meet the CAB's largest unmet need annually100% achieved Increase shareholder value from NPD pipeline NA Innovation Strategy Align R&D investment with industry trends identified by CAB50% in alignment Increase shareholder value from NPD pipeline NA Testing & Prototyping Commitment from CAB to help prototype and beta test all New Product Developments80% achieved Increase shareholder value from NPD pipeline NA MARKET INTELLIGENCE Identify Top Competitors Identify top competitors who are approaching CAB members and understand their strategiesTarget metNA Identify our unique market differentiation Gather top 5 reasons why companies buy from usTarget metNA TOTAL BUSINESS VALUE $ 12,250,000

8 N EXT STEPS We need your commitment to…

9 F OR A DDITIONAL RESEARCH PLEASE VISIT :


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