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Your Revenue Model
A revenue model lays-out the process by which a
company actually makes money by specifying how it is going to charge for the
services provided...
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Service-Profit Chain
Customer satisfaction
is a critical component of profitability.
Exceptional
customer service results
in greater
customer retention,
which in turn results in higher profitability. Customer loyalty is a major
contributor to sustainable profit growth. To achieve success, you must make
superior service second nature of your organization. A seamless integration
of all components in the service-profit chain
–
employee satisfaction,
value creation,
customer satisfaction, customer loyalty, and profit and growth – links all
the critical dynamics of top customer service...
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Customer
Success 360
Venture Strategies
The most successful companies are those that
have developed aggressive venture strategies and have made ventures critical
components of their strategic and operating success. In ventures, large and
midsized companies can discover a source of
growth they are striving to achieve. New business creation has become
central to achieving strategic and
financial objectives
of market champions...
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3 Strategies of Market Leaders
Effective Pricing
The best price is always the one that provides
you with the most long-term profits. Price in terms of value rather than
cost. Cost-plus pricing is worst choice. When you start pricing more
intelligently, you will have a real
advantage over most of your
competitors...
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Synergistic
Selling: 3 Arts
Economic Value Added (EVA)
Economic Value Added (EVA), or
economic rent,
is a widely recognized tool that is used to measure the efficiency with
which a company has used its resources. In other words, EVA is the
difference between return achieved on resources invested and the cost of
resources. Higher the EVA, better the level of resource unitization...
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Finding New Opportunities for Profitable
Growth
To find and pursue new opportunities you must develop a clear point of view
about sustainable growth and make it a
part of your company's genetic code. Leaders that go away from
muddling along in a mature industry and toward coming alive with
rapid
growth
prospects
identify opportunities, develop selection criteria, select the avenues
for profitable growth and pursue
opportunities –
with
speed...
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Competitive
Strategies: 2 Types
Case in Point:
Dell Computers
At Dell Computers,
segmentation
initially started as a sales concept to most effectively meet the
needs of different groups of customers.
"As we deepened our
understanding of each customer segment, we also developed a better
understanding of how to measure its
financial opportunity. One of the greatest things about
segmentation is that it has allowed us to see the growth rates,
profitability, service level performance, and market share in
each unique segment, and adjust our activities accordingly," says
Michael Dell, the Founder of
Dell Computer Corporation.4 "Segmentation
also enabled us to
measure
the efficiency of these business units in
terms of their asset use. This meant we could evaluate our return on
invested capital in each segment, compare it with other segments,
and target what the
performance
of each should be. It became a great way to identify what needed to
happen for us to reach our full potential in each business."...
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