essentials-of-customer-centric-business2015-mark-hocknell
TRANSCRIPT
7/28/2015
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© Mark Hocknell 2006-2015
Essentials of Customer Centric
Business
© Mark Hocknell 2015 www.markhocknell.com
Mark Hocknell
0438 451 405
© Mark Hocknell 2006-2015
The most successful businesses today are those that design their
business to deliver value to the customer*.
Their planning is then based on customer-centric principles so that
they align their resources to achieve their results. (* For confirmation see: Reorganize for Resilience, by Ranjay Gulati (2009) Harvard Business Press)
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© Mark Hocknell 2006-2015
Government Owned Corporations recognise the value of becoming
customer-driven (or centric) - everything an organisation does is
because their is a customer at the end of the chain.
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© Mark Hocknell 2006-2015
The Queensland State Government also understands that being
customer-centric is a key value for the culture of any organisation...
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© Mark Hocknell 2006-2015
Strategic Value Chain
• $100m Revenue • Strong Margins
2015
- Understand Customer Value
- Develop Competitive
Products/ Services
Value Proposition
Development and Delivery
Manage the Lifecycle of Each
Customer Segment for Profitability
Growth
Reputation
Revenue
Customer Profitability
Customer Strategy
Example
Organisational
Goals
Revenue does not come from products or service - it all comes from
customers that are prepared to pay for the value they receive from
the products and service we offer...
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© Mark Hocknell 2006-2015
Phase One
Phase Three
Phase Two
Create your Customer Strategy
Articulate your Value
Proposition
Deliver Value to your Customers
Phase One considerations: • Your business strategy and financial goals inform your Customer Strategy. • Define the groups of customers your have/want – this is not segmentation – but an evaluation of the customer’s characteristics of how they get value from you, and why. • Two-way value – understand your value to your customers – define the value of each of your customer groups to you. • Decide on 2-3 (of the seven) Customer Strategies for each customer group.
Phase Two considerations: • Use words that mean something – not marketing jargon that no one will understand, especially customers. • What is your VP at a business level to your customer groups..? • Do not describe why your customers should buy from you, or your competitors. Describe why your customers should keep dealing with you.
Phase Three considerations: • This is the broadest phase and where most business start. • Define the customer experience for each journey they take with you. • Bring in the discipline of process management. Use performance measurement for continuous performance improvement. • Align: Marketing: Communication: Sales Management: Selling Activity: Service Delivery.
Customer Centric Business Align your resources Maximise your results
The three
phases to
become
customer centric.
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© Mark Hocknell 2006-2015
Building a Customer Centric Business
in a nutshell...
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© Mark Hocknell 2006-2015
Phase One
Phase Three
Phase Two
Create your Customer Strategy
Articulate your Value
Proposition
Deliver Value to your Customers
Phase One considerations: • Your business strategy and financial goals inform your Customer Strategy. • Define the groups of customers your have/want – this is not segmentation – but an evaluation of the customer’s characteristics of how they get value from you, and why. • Two-way value – understand your value to your customers – define the value of each of your customer groups to you. • Decide on 2-3 (of the seven) Customer Strategies for each customer group.
Phase Two considerations: • Use words that mean something – not marketing jargon that no one will understand, especially customers. • What is your VP at a business level to your customer groups..? • Do not describe why your customers should buy from you, or your competitors. Describe why your customers should keep dealing with you.
Phase Three considerations: • This is the broadest phase and where most business start. • Define the customer experience for each journey they take with you. • Bring in the discipline of process management. Use performance measurement for continuous performance improvement. • Align: Marketing: Communication: Sales Management: Selling Activity: Service Delivery.
Customer Centric Business Align your resources Maximise your results
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© Mark Hocknell 2006-2015
Phase One: The Customer Strategy
Defining the customer groups:
• what are the different groups of customers • what defines one group from another • what attributes do they have • what do they value
Step 2 • Balance the delivery of value to customers with the needs of the organisation • Not all customer groups are equal • Define your customer strategies for each customer group
Step 1
• Once you have done step 1 and 2
you can then decide your customer strategy for each customer group.
There are only seven core strategies, the key factor is to chose one
(maximum two) per customer group.
•Translation of the business
strategy for the organisation into
what the strategy means for
each customer group
• Describes the approach,
principles and tactics
• Identifies the value-delivery-
systems
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© Mark Hocknell 2006-2015
Phase Two: Articulate your Value Proposition
• Ensure the value proposition is relevant for each
of the customer groups identified.
• The value proposition must align with the
customer’s statement:
“These are the most worthwhile things we value
that keep us doing business with you…”
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© Mark Hocknell 2006-2015
Phase Three: Deliver Value to your customers
Align your resources...
1. People and Culture.
2. CX, Processes, Measurement
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© Mark Hocknell 2006-2015
People and Culture • Culture enables strategy
or “eats it for breakfast”...
• We are in a people businesses after all – people bring our business ideas and plans to life (or not)
• Culture is led
• Define the culture you want to have
• Make it part of your visioning
• Perhaps the old maxim still applies “hire the passion and train the skill”
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© Mark Hocknell 2006-2015
Consistent Marketing Messages and Service Excellence
Delivering to: Customer Value
•Acquire
•Onboard Sales
•Establish
Process
•Product
•Service Deliver
Customer Value
Experience and Process Management; Measurement
Sales Tactics
Improvement
“…is pegged to the realisation of customer value…”
Improvement
Guided by your Customer Strategy
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© Mark Hocknell 2006-2015
Consistent Marketing Messages and Service Excellence
•Acquire
•Onboard Sales
•EstablishProcess
•Product
•ServiceDeliver
Customer Value
Experience and Process Management; Measurement
Sales Tactics
Improvement
“…is pegged to the realisation of customer value…”
Improvement
Delivering to: Customer Value
Notify
Investigations
CR2
Claims & Rec.
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95%
No
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CR4
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to ConsumerConsumer
Agrees?
Yes,
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No
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80%
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Consumer
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Form
Complete?
Yes
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CR7
Make
Possible Phone
Call to
Claimant
PossibleClaimFrom
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CR8
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90%
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Set to CE?
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Claims & Rec.
CR11
Comply
With
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Claims&Rec.
CR9
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Receive
Notice of
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CR1
Claims & Rec.
10/week ave.
VR
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VR
VR VR
VR
VR
NF
Elapsed: 2 days Work: 2.5 hrs Elapsed: 3 days Work: 2 hrs
E: 3 daysW: 6 hrs
E: 3 daysW: 6 hrs
E: 1 dayW: 1 hr
E: 1 dayW: 1 hr
E: 2 wksE: 5 daysW: 1 hr E: 4-6* wks
E: 2-4 wksW: 8 hrs
* Hearings Currently Suspended
E: 1 dayW: 1 hr
E: 1-36+ wks
E: 1-36+ wks
Notify
Investigations
CR2
Claims & Rec.
Notify
Investigations
CR2
Claims & Rec.
Valid
Claim?
Yes
95%
No
Claims & Rec.
CR4
Send Letter of
Advice
to Consumer
Claims & Rec.
CR4
Send Letter of
Advice
to ConsumerConsumer
Agrees?
Yes,
??%
No
Don’t Know
Claims & Rec.
CRx
Complete
file notes
& Close
Claims & Rec.
CRx
Complete
file notes
& CloseEndEnd
On
Correct
Form?
Yes
80%
No
Claims & Rec.
CR5
Send Letter of
Advice
+ Form50
to Consumer
Claims & Rec.
CR5
Send Letter of
Advice
+ Form50
to Consumer
Consumer
Acts?
No,
Negligible
Yes
Form
Complete?
Yes
20%
1st time
No
Claims & Rec.
CR7
Make
Possible Phone
Call to
Claimant
Claims & Rec.
CR7
Make
Possible Phone
Call to
Claimant
PossibleClaimFrom
Consumer
PossibleClaimFrom
Consumer
Form
Received
In Time (per
Form52)?
Yes
95%
No
Claims & Rec.
CR8
Send Letter of
Determination
+Form52+Form6
to Claimant
Claims & Rec.
CR8
Send Letter of
Determination
+Form52+Form6
to Claimant
Consumer
Acts
< 14 dys?
No
Yes
90%
Tribunal
CR10
Conduct
Directions
Hearing for
Extension
Tribunal
CR10
Conduct
Directions
Hearing for
Extension
Tribunal
Grants
Extens-
ion?
Search
Internal OFT
Databases
CR3
Claims & Rec.
Search
Internal OFT
Databases
CR3
Claims & Rec.
Yes, ??%
cd2
No
Tribunal
CR12
Notify
Determination
to Claimant
And CE
Tribunal
CR12
Notify
Determination
to Claimant
And CE
Claims & Rec.
CR6
Send Letter of
Advice + Copy
Of Form50 to
Claimant
Claims & Rec.
CR6
Send Letter of
Advice + Copy
Of Form50 to
Claimant
Directions
Set to CE?
No, 95%
Yes
Claims & Rec.
CR11
Comply
With
Directions
Claims & Rec.
CR11
Comply
With
Directions
Claims&Rec.
CR9
Supply
All Docs
To Tribunal
Claims&Rec.
CR9
Supply
All Docs
To Tribunal
Receive
Notice of
Claim &
Supp. Docs
CR1
Claims & Rec.
Receive
Notice of
Claim &
Supp. Docs
CR1
Receive
Notice of
Claim &
Supp. Docs
CR1
Claims & Rec.
10/week ave.
VR
NF NF NF NF
VR VR
VR
VR VR
VR
VR
NF
Elapsed: 2 days Work: 2.5 hrs Elapsed: 3 days Work: 2 hrs
E: 3 daysW: 6 hrs
E: 3 daysW: 6 hrs
E: 1 dayW: 1 hr
E: 1 dayW: 1 hr
E: 2 wksE: 5 daysW: 1 hr E: 4-6* wks
E: 2-4 wksW: 8 hrs
* Hearings Currently Suspended
E: 1 dayW: 1 hr
E: 1-36+ wks
E: 1-36+ wks
Understand: • Your customer’s journey • The emotions felt and levels of satisfaction along the way • Your sub-process / Alignment
Understand: • Your Performance • Articulate the Results you want to achieve at each level • Design and Define Performance Measures, for your Results • Understand current levels of performance, then:
• Set targets • Prioritise • Monitor, Fine Tune • Continually improve – consciously..!
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© Mark Hocknell 2006-2015
The Customer View
• Acquire
• Onboard Sales
• Establish
Process
• Product
• Service Deliver
Customer Value
“I think & feel they
know me...”
“They get it right..!”
“They know me &
deliver what I
need..!”
“I recommend
them..!”
Assumed Confidence Actual Confidence Trust Advocate/Promoter
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© Mark Hocknell 2006-2015
Customer Centric Business
Align your resources...maximise your results.
Mark Hocknell
0438 451 405
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