Introducing GALE Consulting, Value Propositions, And  Implementation For Typical Projects
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Introducing GALE Consulting, Value Propositions, And Implementation For Typical Projects

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GALE consulting Inc. is a competitive marketing strategy consulting firm specializing in helping clients appraise the price and performance of their products and services the way customers see them ...

GALE consulting Inc. is a competitive marketing strategy consulting firm specializing in helping clients appraise the price and performance of their products and services the way customers see them – competing head-to-head against the competition. This analysis is used to guide your organization in developing and deploying value-based strategies to profitably win and retain business, and creating the alignment required to be a market-driven organization.

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    Introducing GALE Consulting, Value Propositions, And  Implementation For Typical Projects  Introducing GALE Consulting, Value Propositions, And Implementation For Typical Projects Presentation Transcript

    • Customer Value Mapping And Value PropositionsIntroducing GALE Consulting, Value Propositions, And Implementation For Typical Projects 2012  Copyright GALE consulting, Inc., 2012. All rights reserved. Confidential Information: This document may not be copied, distributed or shared outside of your organization without the expressed written permission of GALE consulting, Inc.
    • Topics  Introduction to GALE consulting  Customer Value Analysis Concepts  Implementation Process 2
    • Introducing GALE consulting, Inc.GALE consulting helps clients develop and deploy value-based strategies based on Dr.Bradley Gale’s Customer Value Mapping, a fact-based, data driven system for makingdecisions to profitably improve competitive position in the marketplace. Value Based Strategies Product Value-Based Competitive Improving Value Management Pricing Positioning Market Share PropositionsSome of our clients: INNOVENE 3
    • GALE consulting helps clients use customer datastrategically Stage Four Stage Three Competitive focus Stage Two on targeted markets Customer Stage One Customer attitudes Minimum focus Customer requirements Value Customer - Meeting critical Satisfaction Customer needs of targetedConformance Loyalty customersQuality - Providing what customers want - Retaining our - Outperforming- Delivering what customers competitors we promise - Responding to customer - Getting them to - Creating new,- Meeting standards complaints recommend us unique benefits 21st century growth company Source: Adapted from Managing Customer Value by Bradley T. Gale, (New York, The Free Press) 4
    • Goal of Customer Value MappingImprove business results through consistent strategic processesA Market-centric organization that improves business results by:  Selecting the right markets and customers. (market segments that are attractive and profitable to serve)  Offering Value Propositions that customers perceive to be superior to competition.  Aligning their organizations deliver and communicate the superior Value Proposition. Process People Superior Business Competitive Performance Deliver & Communicate Value Value Rewards Advantage That Target Customers Buy Proposition Structure 5
    • Topics  Introduction to GALE consulting  Customer Value Analysis Concepts  Implementation Process 6
    • Customer Value Analysis Dr. Bradley Gale Author, Managing Customer Value “Arguably the most useful marketing study since the formative works of Peter Drucker, Phillip Kotler and Michael Porter…may shape business thinking for years to come" Publishers Weekly 7
    • Why use Customer Value as a framework for your Voice of the Customer work? Satisfaction and loyalty are not enough! If a competitor offers your satisfied or loyal customer a better value do you think they will consider switching? Customer Satisfaction Score Worth What Paid For Score ~90% Satisfied Worth What Paid For Score AT&T Market AT&T Market Share Share March 89 Feb 90 1987 1988 1989 AT&T was reporting 90% satisfaction levels yet still losing Changes in customer value predicted market share customers…there was no statistical correlation between changes customer satisfaction and market share “Value is simply quality, however the customer defines it, offered at the right price.” Bradley GaleAdapted from Bradley Gale’s Managing Customer Value and a speech given by Raymond E. Kordupleski at the AmericanMarketing Association’s Customer Satisfaction Congress, 1991. 8
    • Companies with a higher Customer Value Ratioachieve higher ROI and ROS 35 31 ROI (%) 30 28 25 Profitability 23 (%) 20 18 15 12 11 12 ROS (%) 10 9 7 5 4 0 0.94 0.98 1.02 1.06 Customer Perceived Value Ratio Source: Keith Roberts, MD PIMS Europe, at Bradley Gale’s Customer Value Network meeting, London, October 2000, information from the Compustat and PIMS databases 9
    • Customer Value - A Choice Model that integratesprice and performance relative to competition Product Offering Dr. Gale’s works documents:  Customers buy on perceived value  Value = Benefits relative to Cost Customer Service  Benefits include all non-cost attributes (Key Decision Factors)  Benefits, Costs, and Value are perceived relative to competition Relationship Brand/Image Benefits Customer Value Total Costs Buy Price Other costs 10 Source: Adapted from Managing Customer Value
    • Customer Value Mapping provides the frameworkfor building a Value Proposition 1. What factors are the most important drivers of customers’ perceptions of overall value and their Competitive focus purchase decisions? on targeted markets 2. How do customers perceive the overall value of your Customer products and services relative to key competitors? Value - Meeting critical 3. Which competitors are the most vulnerable and which needs of targeted are strongest in their ability to gain and retain customers customers? - Outperforming competitors 4. What are the areas for improvement that will have the - Creating new, most impact on your ability to win and retain more unique benefits business? 5. What factors should be emphasized in marketing 21st century communications? growth company 6. What are the important customer messages that will help you sell? 11
    • A Value Proposition must answer this question foryour customers How will I be better off if I buy from you rather than from your competitors? Elements that Must be Explicitly Characteristics of a Defined in a Value Proposition Winning Value Proposition  Targeted customers and distinct market  Offers superior total value to customers in segments targeted segment  Benefits to deliver  End use benefits are explicit and specific  You must be better than competitors enough for:  Proofs you will deliver  Clear communication to customers  Guiding decisions and actions internally  Tradeoffs  Not part of offering or parity with  The company is managed deliberately in competition is sufficient terms of the activities and resources needed to deliver the Value Proposition  Relative price position 12
    • Topics  Introduction to GALE consulting  Customer Value Analysis Concepts  Implementation Process 13
    • GALE’s process to develop and deploy a ValueProposition VALUE DATA REVIEW PROPOSITION WORKSHOP WORKSHOP DEPLOYMENT KICKOFF Compare Build Value Integrate Into WORKSHOP CUSTOMER Customer And Proposition That Business Plans Document RESEARCH Internal Wins Customers And Measures Business Test Internal Perceptions Objective and Analysis with Internal Market Customers Analysis, Design Research GALE consulting has developed this straightforward process with associated tools for CVM implementation. The process and tools give structure and field-tested rigor to our clients, ensuring a successful program. The major benefit of using our field proven techniques can be found by examining the output -- more effective CVM projects that reduce your cost and time (compared to developing an effective CV implementation process). 14
    • KICKOFF WORKSHOP Document Business Objective and Step 1:Internal Market Analysis, Design Research Kickoff WorkshopWork DescriptionDay One – GALE facilitates an internal company workshop where your staff learns the CVA concepts and toolsthrough action learning. Attendees apply the tools by creating a Customer Value Analysis of their own market(s) andcustomers. This aligns internal thinking about customers and produces an organized way to understand yourmarketplace.Day Two – GALE works with those staff members that will be directly responsible for implementing the CVA projects.An explicit business objective is agreed to; a “Key Decision Factor (KDF)” CVA Model is refined from the work doneon day one; additional drill-down research topics are identified, the research methodology is agreed upon, and aconcrete action plan is developed. The action plan identifies WHO, WHAT, and WHEN for all actions needed tocomplete the CVA project defined. Benefits:Deliverables  Speedy introduction to Customer Value Management  Self-discovery, where staff has major gaps in knowledge, and Facilitated action-learning session on CVA concepts internal alignment gaps on its approach to the market Internal Customer Value Analysis of your market(s)  Aids internal communication Key Decision Factor Model and draft CVA survey  Business objective for measuring project results instrument  Involvement of key stakeholders in “action learning” increases Action plan for CVA project implementation readiness to support action on future recommendations Firm proposal from GALE consulting to support your  Clear action plan assures timely and effective project results implementation of the CVA project  Transfers knowledge of CVM tools and Process to your staff  Establish acceptance of CVM as a process for continuous improvement of the business NOT a one time event 15
    • CUSTOMER RESEARCH Test Internal Step 2: Analysis with Customers Market Research With CustomersWork DescriptionCustomer research is used to validate and refine the internal Key Decision Factor (KDF) model used by customerswhen selecting between suppliers in the target market. Gale consulting will work with staff members directlyresponsible for implementing the CVA project to develop a survey instrument based on the outputs from the KickoffWorkshop. This ensures we incorporate industry knowledge into the research process. GALE will assist your team inselecting the appropriate research technique. For markets with a limited number of targeted customers GALEconsultants may conduct in-depth interviews to gather CVA data. In some B2B cases we recommend our hybridquantitative/quantitative technique where numerical data provides basis for comparison while in-depth probingprovides a framework and context for action. In applications requiring larger sample sizes, GALE will work with amarket research firm to ensure valid data is collected for an effective Customer Value Analysis.Deliverables Actionable CVA market analysis that organizes your customer data to answer key questions around value- based strategy development, competitive positioning, marketing and selling:  What factors are the most important drivers of customers’ perceptions of overall value and their purchase / supplier selection decisions?  How do customers perceive the overall value of your products and services relative to key competitors?  Which competitors are the most vulnerable and which are strongest in their ability to gain and retain customers?  What are the areas for improvement that will have the most impact on your ability to win and retain more business?  What factors should be emphasized in marketing communications?  What are the important customer messages that will help you sell? Please contact GALE consulting, Inc. for sample deliverable exhibits. 16
    • DATA REVIEW WORKSHOP CompareCustomer And Step 3: Internal Perceptions Data Review WorkshopWork DescriptionGALE facilitates a one or two day meeting with key stakeholders. In the meeting stakeholders develop a clearunderstanding of the customer data, the degree of alignment between customer and internal perceptions, and theoptions for improving your competitive position. The workshop is an exercise in focus and consensus building tonarrow the list of improvement options to those most likely to win and retain customers.Deliverables Shared management understanding of customer Benefits: information and ownership of strategic options for  Narrow the list of Strategy and Improvement improvement options to those key factors most likely to win Consensus on key drivers of customers’ supplier customers selection decisions  Reach consensus on your most important Consensus on your current level of performance; gaps improvement options, and plans to close gaps and to close, strengths to leverage leverage strengths Consensus on KDFs to include in your Value  Promote likelihood of action through involvement Proposition of key stakeholders to assure their ownership of decisions Narrowed list of improvement options likely to win customers  Transfers knowledge of CVA tools and process to your staff Plan for evaluating feasibility of improvement options 17
    • VALUE PROPOSITION WORKSHOP Build Value Step 4 Proposition That Wins Customers Value Proposition WorkshopWork DescriptionGALE conducts a two day workshop in which internal stakeholders define your “Value Proposition” that explicitly states 1. The Benefits you will deliver better than competitors 2. The Tradeoffs your company is willing to make 3. The pricing position your company will offer targeted customers vis-a-vis the competition.Key marketing messages and “proofs” of a superior customer experience are also developed along with internalcommunications and action plans for implementation. Benefits:Deliverables  Promotes consistent and effective strategy Strategy decisions execution and resource allocation Clearly stated Value Proposition  Establishes explicit priorities based on value to deliver AND trade-offs to make Distinctive marketing messages  Promote likelihood of action through involvement of Action plan to communicate and implement the Value key stakeholders and process owners to assure Proposition their ownership of decisions  Transfers knowledge of CVA tools and process to your staff 18
    • DEPLOYMENT Integrate Into Step 5 Business Plans And Measures Deployment Plan/Do/Check/Act Integrate Build Process & Changes Internal Business Plans Commitment Organization Tracking To Deliver Tracking To Gap Market & Value Value & Impact Measures Analysis Proposition Measurement Proposition Plan/Do/Check/Act Internal External Management/ Staff Distribution/ Suppliers This is the point where most value initiatives fail. GALE optionally offers services to support Value Proposition deployment and track you CustomerValue Index and Customer Feedback through time. Tracking data can be displayed on your intranet site in a custom dashboard that can be updated in real-time as feedback is collected. 19
    • Contact Information GALE consulting, Inc. 24803 Meadow Oaks Dr. Katy, TX 77494 281-392-4930 Steve Raschilla Phone: (001) 281.392.4930 e-mail: sraschilla@galeconsulting.com 20