Creating Customer Value

Value Innovation

 

Achieving Deep Customer Focus

10 Critical Breakthroughs

 

By. Prof. Sandra Vandermerwe, Tanaka Business School, University of London

  

❶  Create strategic excitement
Generate excitement about a new direction before a crisis, e.g., sagging sales, occurs. Then people will be
inspired, not scared. >>>

❷  Enlist "points of light"
Don't worry about gaining a consensus. Find people willing to try new things and let them inspire others.

❸  Articulate the new market space (desired customer outcome)
Rely on "intelligent hypothesis" rather than research alone, since you are in a way inventing the future. Build cross-functional teams and let people in different product groups and disciplines see how they could contribute to the new market space.  >>>

   Customer Care

 

 

❹  Identify the value opportunities
A high-level team should use the customer-activity cycle to identify gaps (what customers could or should do) and fill them.  >>>

❺  Build a compelling case
Use the customer-activity cycle to develop detailed stories that exert rational and emotional appeal.  >>>

  Creating Sustainable Profits: 9 Questions

 

 

❻  Size the prize

 Determine how much the bottom line will improve with deep customer focus.

❼  Model the concept
Start with a customer workshop demonstrating the customer-activity cycle. Let customers validate, or amend, the Value Propositions (filling of gaps).

❽  Get people working together
A hierarchical, departmental attitude doesn't lead to deep customer focus.  >>>

❾  Get critical mass
Make it easy for customers to choose a new option by quantifying both the financial and non-financial benefits. Collect "before" and "after" data to create and educate the market.

❿  Gather momentum
Because customer value is created using information, it can be used repeatedly. Once knowledge is gathered, it can be adapted to other markets and areas at low cost.