ESTRUC Designing Around the Customer (The Drive Toward Customer-Centricity…
ESTRUC Designing Around the Customer
What is Customer-Centric?
Customer-Focused: Apply to how products are developed and how customer interactions take place
Customer-Centric Strategic do transform an organization
integrates products, services and experiences from within and beyond the firm to provide solutions to the complex and mulfaceted needs of its customers
Will have an impact on each point on the Star Model
Combinig advice, services or software with their products, will create more value than customer can create for themselves
The CCO revolves around customer segments and customer profit and loss center
A key process is customer relationship management
Power and recognition
The cnage from transactional selling to solutions and relationship between customers and the selling area
The Drive Toward Customer-Centricity
same level of service across geographies frim their vendors
Increased Customer Sophistication
rewarded for this loyalty with discounts of higher service level
Products and services
Buying experience as on the utility of the product itself
Consulting and Advice
Bulding Products and Services
Customer Profitability and Segmentation
Customer Segmentation options
Size, life stage, industry or lacation
each segment is likely to have profitable and unprofitable customers
the callenge is figuring out how best to measure customer profitability
Fidelity segment groups
Complex portafolios who required sifnificant levels of attention
Who generated high transaction volumes
with moderates portafolio who were intersted in investing but did not trade actively
Institutions and small businesses
How CCO you need to Be?
Horizontal axis: measures the level of INTEGRATION of products and services
Vertical Axis: measures the COMPLEXITY of the offering (number of products, number of customers and variety of products)
These two dimensions interact will determine whether a light, medium or intensive customer-centric organization is needed
To do business the way the customer wants
Is your customer ready?
buys multiple products from you?
Requests a complex, customized?
complains about having to deal with multiple salespeople
ask for presale service
the account manager is anew role introduced into the organization.
The Account manager is focused and clear accountability for coodinations and integrating products and services on behalf of a customer
If your business has a variety of related products and you wants to bring together
the products may come form parts of the organization with differnet business models and maybe located in units and organizational cultures.
Requires fully organizing around the customer while simultaneously preserving product and functional capabilities
Where the front is a set of customer units and the back is made up of products units
The smaller the organization, the simpler it is to make the conncections between th front (customer units) and the back (product units)
The customer-centric organization is and appealing organizational form with its promise to put customers at the center of attention