What do you think about this ?

2

September 23rd 2011

Customer

• A person or organization who uses the product or services we provide.

…….only customers judge quality; all other .only customers judge quality; all other judgments are essentially irrelevantjudgments are essentially irrelevant

Our greatest asset is the customer! Our greatest asset is the customer! Treat each customer as if they are Treat each customer as if they are

the only one!the only one! LAURICE LAURICE

LEITAO LEITAO

All People Have Needs and Wants.

Needs and Wants Change.

As you go As you go through life, through life, needs/wants needs/wants

may change or may change or become less become less important.important.

In high school you might want a backpack.

When you get older, the

professional image of a

briefcase is desired.

Many Factors Cause Needs/Wants to Change.

Age Educational level

Marital status

Income levelParenthood

Many Factors Cause Needs/Wants to Change.

Place of residence Influence of friends and

relatives

Culture

Seasons of the year

Economic conditions

Is Selling like this ……?

8

September 23rd 2011

Selling Problem

• Great strategy• Different technology• Product cycle• Good relationship

9

• Value for the Money• Customer Needs

Diversification• Demand for better

service capabilities

1. Global Competition 2. Low Profitability

4. Customers Needs Change3. Technology Improvement

Proliferation of Competition

Convergence of Technologies

Erosion of Monopoly

IncreasedSophistication

• Internet & e-Commerce• Supply Channel

Interaction• New Business Model

• Matured Industry• Supply exceeding Demand

• M&A• International Alliances• Dramatic Global Shift

CustomerFocused

Why Customer so important ????

Why is Customer Important ????

1960s 1970s 1980s 1990s 2000s 2010s

1Reduce Costs

2Leverage Investments

3Enhance Products & Services

4Enhance Executive Decision Making

5Reach the Customer

6 Participate in Global Village

2020s

Today we face the 5th wave of innovation

Why are Customer Initiatives Important ?

1960s 1970s 1980s 1990s 2000s 2010s

Reduce Costs

2

Leverage Investments

3

Enhance Products & Services

4Enhance Executive Decision Making

5Reach the Customer

6Participate in Global Village

2020s

1

Optimize Resources &

Minimize Costs

Increase Revenue

Remain In Business

Customer Initiatives

Decision Support

Initiatives

Operational Initiatives

Financial Initiatives

6 - 13

BUYING-DECISION PROCESS

Need recognition

Identification of alternatives

Evaluation of alternatives

Purchase and related decisions

Post purchase behaviour

INFORMATION

Commercialsources

Social sources

SITUATIONALFACTORSWhen consumers buyWhereconsumers buy

Why consumers buyConditions under whichconsumers buy

PSYCHOLOGICAL FORCESMotivationPerceptionLearningPersonalityAttitude

SOCIAL ANDGROUP FORCESCultureSubcultureSocial classReference groupsFamily and households

Copyright © 2000 McGraw Hill Ryerson Limited

September 23rd 2011

Think about Starbucks

• Why are consumers willing to pay $ 4.50 for a cup of coffee?

• Who are Starbucks’ target markets?

• What is the marketing communication message Starbucks wants to convey?• Why has Starbucks been successful?

Consumer buying behavior- key questions

Adoption Styles

0 5

10 15

20 25 30

35

40

45

Innovators EarlyAdopters

Early Majority

Late Majority

Late Adopters

%

2.1%

13.5%

34% 34%

16.4%

Percentage of population types of adoption :

Time of Adoption of Innovation

September 23rd 2011

Goal of Adoption Process

Awareness

Interest

Evaluation

Trial

Repeat Usage

Advocacy

Usage

Unawareness

To understand how to To understand how to increase customer in increase customer in Ladder of AdoptionLadder of Adoption

September 23rd 2011

Value Creation Selling

1. Devote large amounts of time and energy2. Understand how your customers do business and

how you can help them improve that business3. Know not only your customers but also your

customers’ customers4. recognize that the execution of this new

approach will require much longer cycle times to produce an order and generate revenue

18

Where would you place your utility/energy company?

Discount Your Customers

Focus on Core Customer Service

Focus on Caring Customer ServiceAcknowledge - Appreciate - Affirm - Assure

Customer GradeCustomer Grade

Outstanding A

Exceeds B

Satisfactory C

Unsatisfactory D

Failing FImpatient - Rude - Sarcastic - Ignore - Blame Others

Provide Basic Products, Programs, Services

Are You Here?

Here?

Or Here?

How Is A Customer Delighted?

Expectations Customer attitudes which form a framework for judging performance.

Quality A bundle of tangibles and intangibles a customer takes into account when evaluating the experience

Value The quality of an experience as perceived by the customer and related to its cost

Utility

Touch Point Experience The point

at which the customer interacts or touches the organization.

Satisfaction The measure reflecting a customers experience against their expectations.

Delight A condition in which experience exceeds expectations.

Environmental - the physical setting in which the customer experiences the delivery of the product.

Aesthetic - any sensory experience that affects the perception of value (flavor, visual appeal, smell, temperature, music, sound levels).

Interpersonal - the customers’ experience or human interaction with those who deliver the product or service.

Deliverable - anything of which the customer takes custody, even temporarily.

Procedural - what an individual must go through to function as a customer (waiting in lines, filling out forms, visiting numerous facilities).

Informational - the information a person needs to function as a customer (where to go, who to contact, payment amount, office hours).

Financial - what the customer pays for the total experience, as well as the nature of the financial interaction.

Customers Value Package

Customer Value Is High

Customer Value Is Low

Customer Loyalty Is Low

Customer Loyalty Is High

Categorize and Target Customers

Know The Customer and Make It KnownPerform to Customer Value Package Exceed Customer ExpectationsSupport Multiple ChannelsRemember to SellMigrate to Digital Channels Where Greatest Results Are Achieved

Convert Customere.g. Current customer – profitable – receiving service from another

provider

Monitor Customere.g. New customer –

potential future profitability

Upgrade Customere.g Current customer – was profitable – now

strong advocate

Retain Customere.g. Current customer

- profitable

September 23rd 2011

Why are sales process broken ?

• More often interact with the purchasing department• All about price• Training materials about not willing to be rejected, not

subject to pressure, does not compromise on the price• Change the incentive system• Not involved in the design firm offer• Sales force is reorganized to better focus on the

customer• Focus in internal• Do not care about the customer from the customer• Management believes they have been doing well

October 26, 2006 23

September 23rd 2011

How to improve the sales process is broken ?

24

Conducting the sales is Conducting the sales is not the not the targettarget but merely symptoms but merely symptoms of a successful communicationof a successful communication

September 23rd 2011

How to become partner with your customer ?

• Knowing customer needs• Target and priority of customer• Barrier competitive customer

25

September 23rd 2011

How to become a trusted partner of the customer

• Customer opportunities and anatomical information dynamics of competition

• Customers of customers and competitors customers• Corporate culture, psychology, and the dominant

force on the company's customers• How to make decisions on customer organization

customer's goals and priorities, both short and long term, clearly and specifically

26

How well do you know your target customer?

• B2B – Are you targeting specific industries, geographies or functional roles? • B2C – Are you targeting specific demographic or psychographic segments? • Are there primary targets as well as influencers that should be considered?• Are the needs of your target segment aligned with what you’re selling?• Do the features that differentiate your service matter to the target audience?• What do you expect those needs to be in the future?• When in the purchase cycle are services introduced to the target client?• Are there specific catalysts that drive customers to seek you out?• Are competitors exploiting gaps in your coverage of the sales cycle?• Are you approaching customers in the manner and location that aligns with

their decision-making processes? • Are your channels aligned with the target customer’s needs?• Is your service the best use of the client’s dollar right now relative to competing

priorities?• Why is your company the best choice for them in this category?• Do you have unique capabilities/assets that matter to your target audience?• Are capability gaps impairing your ability to execute?• How does your organization achieve alignment to focus on these capabilities?

Who

What

When

Where

Why

How

Use the people at your table to help you!

Knowing customers’

needs, wants, and motives lets you tailor your presentation to each customer.

Five steps to make your business (more) customer-centric

Based on experience acquired by working with

#1 Understand it’s a mindshift game

#2 Show them the money

#3 Make the customer voice actionable

#4 Pick your battles carefully

#5 Build a movement

(...)

30

for more information on these slides can email to: mochkurniawan99@gmail.com