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7/28/2015 1 © Mark Hocknell 2006-2015 Essentials of Customer Centric Business © Mark Hocknell 2015 www.markhocknell.com Mark Hocknell 0438 451 405 [email protected] © 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) 3

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7/28/2015

1

© Mark Hocknell 2006-2015

Essentials of Customer Centric

Business

© Mark Hocknell 2015 www.markhocknell.com

Mark Hocknell

0438 451 405

[email protected]

© 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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7/28/2015

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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.

Valid

Claim?

Yes

95%

No

Claims & Rec.

CR4

Send Letter of

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to ConsumerConsumer

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Set to CE?

No, 95%

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CR11

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CR9

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Supp. Docs

CR1

Claims & Rec.

10/week ave.

VR

NF NF NF NF

VR VR

VR

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VR

NF

Elapsed: 2 days Work: 2.5 hrs Elapsed: 3 days Work: 2 hrs

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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.

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file notes

& Close

Claims & Rec.

CRx

Complete

file notes

& CloseEndEnd

On

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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

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CR11

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Claims & Rec.

CR11

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CR9

Supply

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CR1

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Notice of

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Supp. Docs

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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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7/28/2015

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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

16

© Mark Hocknell 2006-2015

Customer Centric Business

Align your resources...maximise your results.

Mark Hocknell

0438 451 405

[email protected]

17