Customer-Centric Transformation: What Good Looks Like – Penetration – Understanding Customer Value – Part 14a of 14c


Designing and executing a customer-centric business model requires end to end organisational alignment. Customer-centric capability development cannot take place in isolation to the rest of the business. The customer-centric journey requires a clear quantified understanding of current organisational capability across all 14 capability areas of the SCHEMA® Customer Management framework in the centre of the REAP Customer-Centric Blueprint below. As important as an understanding of current customer management capability is, so too is an understanding of the capability to which the organisation aspires.

Each week I’ll address another single capability area, sharing with you the Transformation Intent to which your organisation should commit to, as well as ‘What Good Looks Like’ for those organisations that have achieved a fairly high level of maturity in the respective capability area.

The REAP Customer-Centric Organisation Blueprint®

REAP CCOB for Blog

 

 

 

This week we are dealing with Penetration which is one of the four Execution capability areas represented. The Execution layer relates to the capabilities and control levers needed to optimise customer value and includes Retention, Efficiency (understanding cost to serve), Acquisition and Penetration (customer development, cross-sell and up-sell) – collectively referred to as REAP. These are capabilities and initiatives that can be optimised in the short term.

These capabilities support your ability to implement your chosen customer strategies and rely on the fundamental building blocks (Foundations) as well as the Enabling capabilities already discussed in Part 1 to 10 of this series of blog posts.

Each of the four Execution capability areas is made up of sub-components. The Penetration dimension relates to the ability to develop more value from existing customers through cross-sell and up-sell activities to improve return on customer investment. Formal management of high value customers and key accounts is a critical part of this. It also requires clarity as to how you deal with low value customers from a development perspective, if at all. The 3 sub-components of the Penetration dimension are ‘Understanding Customer Value,’  ‘Increasing Customer Value,’ and ‘Managing High Value Customers.’ Each of these areas is addressed in separate, individual blog posts.

Transformation Intent – Penetration

“Delivering sustainable and superior business performance requires the on-going development and growth in the value of your customer base. To do this you need to have an in-depth understanding of your customer value so that you can identify opportunities to increase this value. This potential uplift is then supported through relevant propositions, cross-selling, up-selling, indirect value creation and expansion of existing product usage. In treating different customers differently, high value customers should also be given special attention so that the right team equipped with the necessary budget can deliver on their specific needs.”

What Good Looks Like – Understanding Customer Value

  • Definitions of how customer value is calculated have been agreed and implemented for the current, to-date & future/lifetime value levels. Proxies have been developed where real data is not available.
  • Analysis has been carried out of value distribution across the customer base and there is clarity about what each of the main value drivers are (e.g. acquisition rate, attrition rate, product holding, market cost etc.).
  • The development of value (upwards and downwards) over time at the absolute level and at the share-of-spend level is understood for different types of customers.
  • Opportunities to develop customer value are identified based on analysis of current purchase patterns, predictive modelling and any other identifiable indicators.
  • Staff are clear on how much value varies between customers and the critical importance of taking special care of the most valuable.

For more insight into customer-centric business model innovation as well as more insight into this particular area of the REAP Customer-Centric Blueprint, please see my book “The Customer-Centric Blueprint’ – http://amzn.to/ZILg4y

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Customer-Centric Transformation: What Good Looks Like – Data Management – Part 4 of 14


Designing and executing a customer-centric business model requires end to end organisational alignment. Customer-centric capability development cannot take place in isolation to the rest of the business. The customer-centric journey requires a clear quantified understanding of current organisational capability across all 14 capability areas of the SCHEMA® Customer Management framework in the centre of the REAP Customer-Centric Blueprint below. As important as an understanding of current customer management capability is, so too is an understanding of the capability to which the organisation aspires.

Each week I’ll address another single capability area, sharing with you the Transformation Intent to which your organisation should commit to, as well as ‘What Good Looks Like’ for those organisations that have achieved a fairly high level of maturity in the respective capability area.

The REAP Customer-Centric Organisation Blueprint®

 

 REAP CCOB for Blog

 

 

 

 

 

 

 

 

 

 

 

This week we are dealing with Data Management which is one of the four Foundational capability areas represented. The Foundations layer includes the fundamental building blocks that support or limit your transformation ability. These capability areas require broad-based input and alignment, without which the operationalization of a customer-centric business model is almost impossible.

Transformation Intent – Data Management

“Customer-centricity requires that you provide your customer with a consistent and integrated experience. Without the right, quality customer data that is consolidated across multiple sources into a single view, this is not possible. In order to transform your customer data management and deliver the business case for it, you need to measure, manage and report on your customer data as a vital and valuable organisational asset, while holding the protection of the trust placed in you as sacred.”

What Good Looks Like – Data Management

  • The collection and quality management of customer information is driven by a documented strategy that recognises the financial and strategic value of customer information as well as its tactical value.
  • Structured and unstructured data that can be ‘owned’ by the organisation is built in a co-ordinated way from clearly understood internal and external sources.
  • Customer Information quality is managed / reported against clear definitions and its continual improvement is supported by systems, realistic budgets and informed staff who understand the importance of doing so.
  • The changing nature of data being generated in non-owned locations (Cloud data) is kept under active review and opportunities to use or even acquire it are investigated and implemented where appropriate.
  • Privacy and appropriate usage of customer data is as focused on delivering against customer requirements as it is on meeting regulatory conditions and is kept under constant review with the emergence of new media.

For more insight into customer-centric business model innovation as well as more insight into this particular area of the REAP Customer-Centric Blueprint, please see my book “The Customer-Centric Blueprint’ – http://amzn.to/ZILg4y

The Government of the Future – What good looks like


It’s hard not to be impressed by the incredible development that has taken place in Dubai. Much of this is driven by a different way of thinking and acting.

I was particularly impressed by the definition of what the government of the future will look like in the book titled “Flashes of Thought” by Sheikh Mohammed bin Rashid Al Maktoum.

  • The government of the future is open for service 24/7, all year round. The private sector remains open for business so why not the public sector? We want our government to be just like an airline – available around the clock.
  • The government of the future competes with and surpasses the private sector in service quality. We want our government to welcome customers more professionally than hotels; we want our government to manage processes better than banks.
  • The government of the future is connected. Citizens should be able to complete any government transaction at any government service centre. Integrated service centres will spare citizens long trips from one entity to another.
  • The government of the future is available everywhere. We want to shift government services onto smartphones so that customers can file and follow up on transactions using mobile devices, at their convenience.
  • The government of the future is innovative and constantly able to generate ideas. In 2012 the UAE government was able to generate over 20000 fresh ideas to simplify and improve its services. Our goal is to create an environment that encourages people to generate innovative ideas, implement them and constantly measure their effectiveness. Innovation is the capital of the future.
  • The government of the future is a smart government with integrated and efficient technical systems. A smart government is so much faster in completing various kinds of transactions.

Imagine! A customer/citizen centric government to rival the best private sector enterprises. Now that’s talking.