earning the reputation you want and deserve fred crawford managing director alixpartners, llc 2005...
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Earning the ReputationYou Want and Deserve
Fred Crawford
Managing Director
AlixPartners, LLC
2005 Annual ConferenceNapa Valley, CAImplications of Reputation;How Intangibles Can DrivePerformance and Build StrategicAdvantage
Earning the Reputation You Want and Deserve
• What (positive) reputation do you want?
• How can it be achieved?
A Comprehensive Study: Consumer RelevancyConsumer Relevancy Study…
• Conducted in U.S. in late 1999 and February 2001, pan-European study in January 2002, Japanese study in 2003; US study repeated in 2005
• Interviewed over 161,000 consumers
• Asked 60 questions about the importance of various aspects of the shopping experience
Consumer Relevancy Study…
• Conducted in U.S. in late 1999 and February 2001, pan-European study in January 2002, Japanese study in 2003; US study repeated in 2005
• Interviewed over 161,000 consumers
• Asked 60 questions about the importance of various aspects of the shopping experience
…gets rave reviews• New York Times, Business Week and Wall Street Journal
best seller
• [Lafley, P&G] CR is the best tool…for incorporating customer wants and needs.”
• [Burandt, Georgia-Pacific] “…a big idea and blueprint for action.”
• [Smith, FEDEX] …exceptional strategic thinkers who have given anyone concerned about customers a practical, innovative and unique approach to competitive differentiation”
…gets rave reviews• New York Times, Business Week and Wall Street Journal
best seller
• [Lafley, P&G] CR is the best tool…for incorporating customer wants and needs.”
• [Burandt, Georgia-Pacific] “…a big idea and blueprint for action.”
• [Smith, FEDEX] …exceptional strategic thinkers who have given anyone concerned about customers a practical, innovative and unique approach to competitive differentiation”
FACT: a very different customer…
The Two Myths of Excellence
• That most businesses understand what customers are really asking for
• That attempting to be great on all aspects of customer engagement is the way to win
Three Mega Trends
Informed and aware, but cynical and confused consumers
“Clarify my options, allow me to feel satisfied with my choices”
Proliferation of information and communication technologies
Societal Situation Human Condition Consumer Need
Societal devolution
Increasing inability to keep pace with daily life
Inability of traditional institutions to adequately reflect fundamental human values
“Fortify, reinforce, ratify my personal value”
Increase in stress, guilt, anxiety
“Help me survive psychologically and emotionally”
….A Changing Need Set
Human Values Are Embedded in the Context of an Offering
Maslow’s Hierarchy of Needs
Source: Maslow, A. H., The Farther Reaches of Human Nature, 1968; CGE&Y Analysis
“Today, technical differences between products are barely perceptible, which is the reason why context has become more and more important for brands.”
– AG Lafley, Chairman, Procter & Gamble
SelfActualization
Esteem
Love and belongingness(feeling loved and
accepted by others)
Safety, security
Physiological Needs(air, water, food, sleep)
Context = Human Values
Content = Basic Needs
The Conceptual Model for Consumer Relevancy
Trust is a substitute for perfect knowledge and the time to act on it.
Level IIISeek
Level IIPrefer
Level ITrust
Experience Price Product ServiceAccess
Solution
Convenience
Ease
Intimacy Agentry Inspire Customize
Care Consistency Reliable Educate
Respect Honesty Credible Accommodate
The Second Myth of ExcellenceThat attempting to be great on all aspects of consumer and customer engagement is the way to win
A 5,4,3,3,3 profile/mix is optimal. Companies that try to be excellent in everyattribute are either doomed to fail or leave significant money on the tableA 5,4,3,3,3 profile/mix is optimal. Companies that try to be excellent in everyattribute are either doomed to fail or leave significant money on the table
Dominate
Differentiate
Parity3 3
5
4
3
Access Experience Price Product Service
Ideal Value Profile(as perceived by consumers)
ILLUSTRATIVE
Consumer Relevancy Examples
Building the Desired Reputation Drives Different Operating Behaviors
Marketing Sales Manufacturing Supply HR Store Ops
Agentry
Inspire
Customize
Solution
Intimacy
Value
Features
Flexible
Answers
Comfort
Standard
Innovate
Flexible
Results
Lifestyle
Standard
Quality
Adaptive
Extend
Integrate
Productivity
KnowledgeTransfer
SatisfyCustomers
ProblemSolved
Leverage
No Frills
Test/Use
Educate/Personalize
Comfort
FacilitateRelationship
Price
Product
Service
Access
Experience
Cust. Svce
Basic
Inform
Response
Empower
Custom
IT
LowCost
Innovation
CustomerInsight
KnowledgeMgt
CustomerInteraction
