GROUP PARTNERS &REAP CONSULTING

2

This is not simply a matter of building a strong sales force or equipping your customer service representatives with new technology.

Achieving Customer Centricity means knowing your most valuable customers intimately, knowing their world and its challenges and being able to speak their language. It means knowing when to be there for them and when to stay away. And when they have chosen you to help them achieve their goals, it means delivering on your promises.

Achieving Customer Centricity in the 21st century requires an enterprise to design

this into every aspect of the business.

INTRODUCTION

1

Any business looking to work, and to win, in the 21st century is/will be impacted by political, economic, social and technological issues/challenges. When a business views these impact drivers from a 360˚ context the challenges around complexity, legacy, organizational structure and short-termism become evident.

Group Partners and REAP Consulting have joined forces to help clients embed Customer Centricity throughout their business. Together we bring a unique combination of disciplines, services, tools and techniques that are designed to deliver 360° Context – and then ensure that it is implemented and sustained.

We refer to this as 360° Context.

2

3

Programs are always designed specifically to meet our client’s own needs, however there are standard best practices and frameworks that we deploy that apply in all instances. As we develop the program the extent of support that is required from our teams will be determined – as will the choice of specific modules from the REAP Portfolio of services.

This brochure introduces the core philosophies

and approaches of both companies and explains

how they work together as complete and complimentary

programs of work that start with a clear strategic intent

and end with a detailed blueprint for execution.

“The Company’s focus on product innovation and customer service has won it a cadre of famously loyal customers, unlike any other PC vendor.”

Apple Computers

4

Structured Visual Thinking TM is a significant approach to the needs of the 21st century organization. It is a response to the dynamic and changing world of business and enables creativity and innovation within the fields of thinking and complex problem solving. It applies the ideas of visualization and design thinking to the important conversations of today.

The only way to build real commitment is through the Design and Delivery of a Unique and Distinctive Customer Experience. This is a blend of the rational and the emotional – it is a mix of the traditional product, service, communication offering and the emotions evoked when engaging with the business across various touch-points and/or channels. New age leadership needs to pro actively design this experience at each and every moment-of-truth and ensure that employees are empowered to deliver according to the agreed upon standards.

ThE CORE PRINCIPLES

These principles are embedded in everything that we do and applied through the use of structured frameworks, scenario development, customer lifecycle mapping, business models and maturity assessments.

Governed by Structured FrameworksThe Group Partners 4D™ approach answers The Critical Questions for the 21st Century Organization. Quite simply it is a sequence of 4 Frameworks that ensure a leadership team thinks deeply and in the widest context about what could, should and will be done to ensure the future it wants. It then sustains the outcome through tools and techniques right across the enterprise.

The REAP Customer Centric Organizational Blueprint™ visually represents the business system that needs to be endorsed and adopted by any organization looking to drive competitive differential and business performance sustainability via Customer Centric based business strategy.

5

STARTING ThE JOURNEYFirst we need a clear and aligned vision, direction and intention. This is where we apply the Group Partners 4D™ approach. In a GP/REAP program the focus is typically on the first 2 frameworks – Discovery and Development.

At the end of this foundational phase we will have a clear vision and high level definition of what we want to achieve and the implications of that on our business today. Our partners in REAP will have been tracking closely and will take the synthesised outcomes from this work forward as the baseline for developing the Customer Blueprint.

“The Google experience is a classic example of a company committed to wowing its customers based on consistent quality and constant innovation over the years.”

Google

6

7

DISCOVERY – is about building alignment as a team and uniting against a clearly defined challenge/problem/opportunity. There are 11 conversations that are governed by the Discovery Framework and we spend a day in session with the team to populate it.

The Framework is underpinned by a logic that connects each module to present a whole systems approach to the outcome. This is the Business Equation.

D1In Discovery this reads:

By what decision criteria [H] do we decide what value proposition, story or offer [G] about which mix of product [E] and/or service [F], gets delivered through which channels [D], addressing what trend, market issue or point of pain [C], to which (most valuable) customer segments [B], resolving what aspiration or need [A]. With what capabilities and behaviors [I], against what time-line [J] achieving the goals [K] at minimum risk and maximum return on investment?

8

9

DEVELOPMENT – is about framing our strategy or program and building the rationale for the business case and implementation plan. This framework makes sure that we really are building a program that will deliver the outcomes we want. There are eight conversations in this framework. We spend two days with the team to create the first baseline and often work on multiple iterations.

Development is also supported by its own Business Equation:

To achieve the desired Strategic Outcome; (the ultimate goal) (H) and deliver the Redefined Conditions (G); (the measurable effects that result) optimally enabled by the necessary Governance, Capability and Cultural Environment Operating Model (F) - what is the planned Roadmap of Activities and Actions (E), (Action Plan) that will deliver against the integrated Strategic Themes (D) that themselves are directly driving the effects in (G) and take the business towards the new Future Vision (C) based on the Business Imperatives (B) (the business drivers) which will move the business away from the Current Reality (A) and fully answer the Exam Question?

D2

10

GROUP PARTNERS & REAP CMAT FRAMEWORK

11

“Another proactive measure adopted by GE CEO Jeffrey Immelt that promotes goodwill and customer satisfaction is the program wherein the GE Six Sigma black belts/management experts assist their internal customers in streamlining processes, cutting costs and increasing profit margins – all free of cost”.

GE

12

The point of departure must be a well defined set of strategic outcomes. The outcome represents the big prize for any business – its purpose and passion and the reason it exists. We aim to set a high bar here as this establishes the frame for everything we do – differentiation in this environment requires fresh thinking and creativity.

Applying the Development

Framework outcomes

to Customer Blueprints.

13

Having defined the ambition and identified the key performance indicators that will give us evidence of true customer centricity, we can consider the realities of today and those things that may prevent or hinder success. Within the current reality facing any business is an ‘existing’ set of assets. These need to be clearly understood and documented as they help define the ‘point of departure’ and the existing competitive advantage.

This typically means a blend of financial targets, well defined competitive differentiators, a desire to deliver customer excellence and possibly the objective of becoming/remaining an aspirational brand. By grouping the metrics in our new dashboard into a set of what we call ‘Dividends’ we widen the context and our lens on customer excellence so that we are taking a complete systems perspective.

Having defined the ambition it

will be necessary to measure

achievement.

14

Typically this results in a set of ‘strategic themes’ (e.g. Leadership, People, Customer Experience, Execution, Design Thinking, Innovation) supported by well defined plans that enable execution. These strategic themes will be fully aligned and supportive of the strategic outcomes identified earlier and will be mapped to the metrics and measures that will prove success.

Business strategy and company vision should be

in place and well understood across

the business.

We often find that this is something that is missing or is poorly articulated – and where it exists it is often limited to the company’s internal mission. The vision must fully embrace what it means to every member of the enterprise to be customer centric.

This is where we describe what the future will feel like to the customer of our services as well as to the workforce delivering that service. It is an alternative perspective of the outcomes that we have already defined.

Achieving the vision and

outcomes requires action.

15

This is a fundamental step in the journey as a Customer Centric business model requires cross functional collaboration that allows the organization to design and deliver a distinctive customer experience.

The customer experience itself is a blend of the physical product, communication or service and very importantly, the emotions evoked, before, during and after engaging with the organization across any chosen touch-point. REAP Consulting uses an approach based on CMAT™ which is a globally recognised methodology that measures Customer Management capability.

If a business is serious about developing

a Customer Centric based business

strategy it’s imperative to identify the current

capability of those cross-functional

practices that enable the organization to treat different

customers differently.

“Called the Toyota Way, it is the foundation of the Toyota Production System, or Lean manufacturing techniques. In the largest sense, it is a mindset or management philosophy… Being customer-centric is part of the Toyota Way, which is based on “pure logic and pure respect…”

Toyota

16

This is a critical step and is needed in order to clearly define the ‘scale of change’ required within the organization. Without this change the business is unable to determine the capability required to make this change (skills, internal resource requirements, external resource requirements, non-manpower costs), the costs of the programme itself (measured against the incremental uplift in profit as a result of the improved organizational capability), the improvement in the quality of decision making and the delivery of the defined Customer Experience (and therefore profitability) and the time horizon over which the change will be delivered.

What lacks in most organizations is a clear,

well defined, well aligned and agreed ‘future state’

of the Desired Customer Management capability.

17

Clarity of the current organizational capability and the desired capability enables the design of the transformational journey towards a truly customer centric operational model. The ultimate objective of this journey is to develop a way of engaging with client/customer such that the association becomes one of indispensability. The outcome is ultimately the proactive design and delivery of a unique and distinctive customer experience, how to define and execute and become ‘what we could be.’

The design of the customer journey is reliant upon a deep understanding of the distribution of value across the customer base. This understanding is invariably supported by decile analysis across those key metrics that address the Retention, Efficiency, Acquisition and Penetration (REAP) drivers. REAP is a mechanism/way of optimising customer value and proactively managing the profit stream i.e. for a particular decile is value being optimised through improved retention (R), more effective cost-to-serve management (E), acquisition of more of that type of customer (A), or improved

take up of additional products/services(P) or a combination

there-of? For optimum value the organization should

consider balancing its capabilities and actions across the REAP drivers by decile/segment. This means that a consistent set of measures exist (REAP) albeit that targets will vary by decile/segment.

18

These will be aligned with our strategic themes, however they address the outcome of the strategic theme in the new world e.g. the outcome of the Leadership theme will be a more effective team, the outcome of the People theme may be greater levels of staff engagement, the outcome of the Customer Experience theme may be improved levels of customer preference, the outcome of the Execution theme may be improved economic profit (EP) and so forth.

Adherence to the thinking and application against the blueprint translate into delivery of sustainable business performance.

Recognizing the systemic nature of this

approach enables the determination of what we

refer to as the ‘Refined conditions of Business.’

19

TOOLS & TEChNIqUESThis section dives deeper into our Portfolio of Tools with a description and further context on the way they are typically applied.

20

An incredibly powerful, experiential approach to solving complex problems and creating valuable opportunities & outcomes.

PORTFOLIO OF SERVICES

21

Structured Visual Thinking (SVT ™) – in association with Group PartnersStructured Visual Thinking is the Group Partners philosophy:

• Structured – because it’s critical for people with complex environments to create some kind of order in which to think, imagine and to construct new value and/or do better decision making

• Visual – because visual techniques accelerate meaning and purpose between people, and

• Thinking – because it’s at the heart of everything a business needs to do. Thinking is more important than ever because of the need to improve performance, create efficiency, solve problems far more quickly and identify new value ahead of the competition.

4D™ is the Group Partners approach that we use to solve complex problems. These are 4 important phases through which we work together with clients. We do it in a powerful, highly energetic way. It is co-creative and deeply respectful of the client’s own insights and knowledge – highly collaborative – working with senior teams against an agreed ‘exam question.’ The ‘exam question’ is a clear statement of the problem to be solved.

4D™ is a simple construct for thinking in the widest possible way. It is a set of frameworks that take us through 4 phases of:

• Discovering what we could do

• Developing what we should do

• Deciding what we will do

• Deploying what we’ve agreed to do

The extend to which we apply these frameworks depends to some degree on the program design and use of the following REAP modules

“Innovations such as Ding!, along with a passion for customer service is what keeps southwest ahead of the competition.”

Southwest Airlines

22

23

CMAT ™ ASSESSMENT - IN ASSOCIATION

WITh ThE CUSTOMER FRAMEWORK AND

OGILVY WORLDWIDEAn objective, detailed, quantitative

and benchmarked assessment of the current Customer Management

capability of an organization, carried out by trained and accredited assessors

who are experienced Customer Management practitioners, most having

held Executive positions in business. CMAT™ scores correlate with business

performance hence there is a strong business/profit focus.

The scoring in each of the 260 practices is evidence based and 3 dimensional: Management Intention, Delivered Reality and Clear Effect. Client performance is compared to a set of averages created from the CMAT™ Benchmark database of many hundreds of organizations.

A CMAT™ assessment identifies both quick-win and deeper, strategic actions that can and should be carried out. It provides a clear baseline against which improvements can be delivered, and measured, via a Customer Management strategy and program. It provides a broad based check that all the necessary Customer Management building blocks are in place before investing more in specific programs or technology, provides high value input to business case, IT development, organizational change and business planning and provides input to analysts on company assets and corporate competence.

(This is a standalone methodology and offering that doesn’t integrate with any other modules)

24

REAP MODELLING - IN ASSOCIATION WITh ThE CUSTOMER FRAMEWORKOur REAP modelling approach delivers an estimation of the potential returns available across the macro value drivers of Retention, Efficiency, Acquisition and Penetration (REAP). It is based on data provided by the client against a detailed brief of what is required, after discussions that identify the key performance drivers within each of the REAP themes.

The scale of uplift is informed by a combination of current performance, market trends, value drivers and by

current organizational capability compared to benchmark organizations. Through selection

of various ‘uplift’ initiatives that have varying impact upon the REAP drivers, a number

of financially qualified outcomes can be derived and compared. It provides a benefits profile for up to 5 years and can have costs included (from the Resource Requirement Estimator Module) to give an ROI estimation.

25

CAPABILITY ASSESSMENT AND BENChMARKER - IN ASSOCIATION WITh ThE CUSTOMER FRAMEWORKA quantitative assessment of the organization’s Customer Management capability levels that support maximization of the value that it derives from its customer base, while delivering the right experience to each customer. Assessment outcomes are reported at an overall level and against up to 70 core areas of Customer Management capability depending on the nature of the organization.

These 70 areas consider hundreds of individual capabilities that are instrumental in delivering deep insight and enabling sustainable business results and meaningful competitive advantage. The results are benchmarked against a database of organizations that have carried out the same assessment. They are also supported by observations and findings and a concise textual summary of the level of capability in each area is provided.

26

CUSTOMER STRATEGY ShAPER - IN ASSOCIATION WITh ThE CUSTOMER FRAMEWORK

An approach to define and align the desired customer management capability of the

organization at an agreed upon time in the future – normally 3 years. A set of 20 strategic

dimensions have been specifically designed to gather the necessary input from senior stakeholders. An option

exists to also gather input from operational teams in order to achieve alignment between senior stakeholders and operations.

ChANGE READINESS InVeSTIgaToR – In ASSOCIATION WITh ThE CUSTOMER FRAMEWORKA realistic assessment of the level of readiness that exists in the organization for major change in terms of the way that customers are viewed, treated and managed, based on 5 proven dimensions. This is combined with a definition of the most like-to-succeed change motivators for the organization overall or by main business units/functions.

27

WORKSTREAM BUILDER AND PRIORITIzER - IN ASSOCIATION WITh ThE CUSTOMER FRAMEWORK A qualification and definition of the work needed to deliver against the nature of change defined in the Customer Strategy Shaper Module and to result in the level of potential financial uplift identified in the REAP Modelling Module. It is based on the known current capability and (if carried out using the Change Readiness Investigator) the level of readiness for change that exists in the organization. It prioritises the activity against up to 5 dimensions of value and feasibility and proposes the highest value activities. These are broken into logical workstreams and the results communicated in a Mind Map format or in a ‘start-point’ MS Project plan.

28

RESOURCE REqUIREMENT eSTImaToR – In aSSocIaTIon WITh ThE CUSTOMER FRAMEWORKA realistic estimate of the manpower and non-manpower resources and investment likely to be required to deliver against the proposed workstreams. These are based on the client’s own balance of in-house versus outsourced resourcing of the necessary competencies. The output differentiates between internal resource, external resource and non-manpower resources e.g. software costs, communication material and rewards / incentives amongst many others.

ACTIVITY PORTFOLIO RaTIonalIzeR – In ASSOCIATION WITh ThE CUSTOMER FRAMEWORK

Integration of the work proposed in the Workstream Builder & Prioritizer Module to the other strategic priorities and change initiatives of the organization. It combines the changes recommended in the program with the other major change programs in the organization and compares them all to a combined set of strategic priorities. This identifies the strategies not being supported by sufficient activity and the activity being undertaken that is not directed at any clear strategic priority.

29

STAFF ENGAGEMENT ASSESSOR – In aSSocIaTIon wITH THe CUSTOMER FRAMEWORKAn illustration and detailed definition of the level and nature of engagement that staff in the organization feel towards the concepts and activity of its Customer Management, in terms of their understanding of it and their enthusiasm towards it.

This identifies consistent areas of challenge across the organization and differences between staff in

different units, at different levels and with different lengths of tenure. It includes a standard set of questions and the ability to add further questions to provide coverage of client-specific issues.

30

FUTURE MAPPING SCENARIO PLANNING ExERCISE

Scenario planning begins to succeed the moment management realises that current strategies, and their related investment decisions need to be thoroughly ‘flight-tested’ in a variety of possible futures. The Future Mapping planning process has a more ambitious goal – to use scenarios to develop entirely new strategic concepts, ones that

prepare an organization to take on future challenges with justifiable confidence. It also provides leaders an

opportunity to reassess the staying power of the strategies upon which the organization is built. Are they all-weather strategies or will they only serve the organization under certain conditions.

CUSTOMER JOURNEY MAPPINGAn approach of visually representing the actual user experience that a customer/partner/distributor goes through in engaging with your organization at a product, communication and/or service level.

We work with you to identify and prioritise Customer Journeys where the organization objective is to drive big improvements in performance. Certain touch-points and/or events provide an opportunity to create a compelling, unique and superior customer experience. Customer Journey Mapping requires an understanding of the reality of customer’s lives and facilitates decision making and day-to-day operations.

31

CUSTOMER VALUE PROPOSITIONOur Customer Value Proposition footprint approach involves a detailed review of all internal and external customer facing material/websites that contribute to a customer’s understanding of the organization’s value proposition. It also involves a review of all available research material around customer needs and satisfaction and is reviewed for consistency with the stated organization Vision and Mission.

These findings are critiqued against other value propositions in the market.The outcome includes the identification and definition of the core components/elements of the overall proposition. Separate Proposition Footprints are then developed according to specific segment needs.

STANDARDS AND TOOLKITSToolkits that set Customer Management standards and provide guidelines and templates for planning and execution purposes drive significant improvements in efficacy, particularly in organizations with operations in different countries or territories.

32

CUSTOMER MANAGEMENT

DAShBOARDSToday’s reporting tools enable almost any business to build an impressive looking dashboard. Ensure that the right metrics are being measured and that the correct

exceptions are being addressed.

MARKET SEGMENTATION & POSITIONING The most important outcomes of segmentation are the ability to reliably predict relevant consumer behavior for an existing, new or potential value proposition as well as understanding the underlying psychology of consumer behavior.

We aim to not only assist you in better targeting and positioning, but also in enriching and deepening your customer relationship, and hence your company’s Share of Wallet. We follow the DAMP process to determine segmental comparison and prioritization on the basis of their relative Distinctiveness, Accessibility, Measurability and Profitability. The right target marketing approach is followed according to your company’s distinct culture, value proposition and future map.

33

MARKET MAPPINGA crucial decision in any segmentation project is to correctly identify which customers should be segmented in the specified market. A market map defines the distribution and value-added chain between the ultimate user and suppliers. This takes into account the various buying mechanisms found in a market. Market mapping is used in market segmentation to help companies identify the target group(s) for their segmentation project.

It includes a number of additional applications, such as tracking changes in the channels to market, determining your performance on these routes to market and illustrating where sales and marketing resources are allocated. These can be compared to how key competitors allocate their resources. The Market Mapping process goes well beyond simply gathering and reporting market data by providing a collaborative, team-based process for bridging the gap between information and action.

34

JOINT MARKET MAPPING AND SEGMENTATION WORKShOPSThe objective of this workshop series is to produce a structure for the defined market, which clearly identifies the drivers of customer satisfaction. These requirements are used to develop alternative strategies to better access the various segments and to ‘fine tune’ the product offers to suit the customer requirements. Most organizations do not have access to all the information necessary to produce a definitive segmentation structure that is 100% accurate. Most organizations do however, have sufficient internal knowledge to produce something that is ‘roughly right’ and is a reasonable starting point.

Where this is not the case, the workshop process highlights the information gaps. In the event that additional research is required, the workshop process supports the development of a rigorous and specific agency brief.

35

CUSTOMER LIFE TIME VALUEAs modern economies become predominantly service based, companies increasingly derive revenue from the creation and sustainability of long-term relationships with their customers. In these environments marketing serves the purpose of maximizing customer lifetime value (CLTV) and customer equity, which is the sum of the lifetime values of the company’s customers.

We have a number of implementable CLTV models that are useful for market segmentation and allocation of marketing resources for Retention, Acquisition and Penetration (cross-selling and up-selling.) Our CLTV tools help not only in determining the value of the customer, but also in supporting the modification of assumptions to better understand the impact there-of on the CLTV result. Moreover, with our REAP Segmentation, REAP Modelling and the rest of our tools your capability to influence customer behavior will be enhanced, positively impacting LTV.

ShARE OF WALLETWhen looking at growth potential by customers and segments, incorporating a historical perspective is important, particularly in rapidly changing industries and markets. Whilst a segment’s current spending level may be modest, knowing that it has changed over a past period suggests a trend to watch. Similarly, it’s important to consider combining that insight with a geographic perspective to better understand emerging trends. The link between business performance and geodemographic profiles may be missed when only analyzing transactional and behavioral data. If a whole population is underrepresented in your customer base, but is growing rapidly, reaching out to expand it presents a big opportunity.

Reap ConsultingPO Box 68520, Bryanston2021 South Africa

Group Partners Europe32 St James’s Street, Mayfair London SW1A 1HD, UK

www.grouppartners.netwww.reapconsulting.com