Strategy and Implementation
Strategy and implementation is all about getting out and making changes to your
business to increase your Return on Customer Investment (ROCI).
Once you have a measurement system
(so you can measure your progress) and
management processes (so you can implement your ideas) you actually have
to make changes to your business. Those changes generally fall into two categories:
Some of the programmes that we have implemented for each camp are outlined
below but first you should know that we practice what we strategize!
Unlike many organizations we not only help you to uncover the right
customer value strategy we get down into the trenches and help you make it a reality.
Increase Per Customer Profitability
So now you know which are your most profitable customers and what drives both their revenue and
cost behaviours its time to get on and implement some programmes to increase profitability.
Examples of the types of programmes we implement include:
- Product and Service Bundling
It sounds so simple - combine some products and give away a
discount to customers for taking up the combined products. The
reality is that many organisations have ended up spending far
more money on fixing there bundling attempt than actually making
any money from it.
Bundling can be a very profitable strategy for organisations.
However, there are many implementation
issues and challenges that need to be considered that go far
beyond the process and systems issues that you will face.
For example, bundle qualifications, benefits and linkages, rules of
engagement for new customers versus existing customers, etc.
- Cross-Sell/Up-sell programs
In order to deliver tactical initiatives that contribute to delivering
strategy, all these programs need to be developed and delivered according
to a combined impact on the customers relationship and ultimately customer
value to you.
However, the reality is that these are usually based on tactical decisions
that result in much money wasted with minimal results that cannot be directly
linked to improving your profits.
One of the simplest ways of increasing
customer profitability is to increase
customer retention. Increasing customer retention by just one or two percent can
have a dramatic impact on the overall profitability of your customers base.
- High Value Customer Retention
Programmes to ensure that you can identify and retain your most valuable customers
- Save/Winback Programmes
Save and Winback programmes prevent you from losing
customers who are stepping away from your organisation. This is more expensive
than retaining customers but less expensing the finding new ones.
- Customer Satisfaction
How oh how do you justify investing in increased customer satisfaction.
Its so soft and hard to relate to profit. We have several approaches
that can be used to develop hard business cases for investment in customer satisfaction.
- Loyalty Driver Identification and improvement
Why do customers stay and why do they leave? Once you
know why they stay you can create programmes to maintain and enhance customer's
loyalty always remembering that investments must have an appropriate ROCI.
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