MY NEW CUSTOMER SERVICES ‘COST TO VALUE’ CURVE<br />VALUEEXCELLENCE<br />PRO-ACTIVE <br />IN NETWORKS<br />LEAN/6-SIGMA<br...
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The New Cost To Value Curve

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  • Wim,

    I admit, that I sometimes struggle with the concepts of design thinking. I do spend a little time thinking about being 'centric'. So, I am being cautious, as I remembered writing a short piece http://mjayliebs.posterous.com/a-response-to-in-crm-its-not-the-customer-tha where I was responding to a post by Glenn Ross - the basic idea was to be relationship centric, not customer centric.

    In terms of what the slide says on its own, I am not sure I understand the Cost to Value title. Which is the cost? Sorry, I may be missing something, apologies if this is the case... Cheers (and happy Birthday :-)
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  • Hi Arie,

    I did not analyze Amazon or Zappos well enough to do them both justice.. Nevertheless, my educated best guess would argue that Amazon Customer Service is in 'Self-service' and Zappos in 'end-to-end experience..' Both likely tending one stage up.. (but again, did not analyze).

    I have no clue as to which is more profitable from both Customer and Company perspective. My guess says that Zappos is likely growing more rapidly than competition and therefor Amazon was interested (they already were competition).

    I do not have any Customer metrics that I can compare for both, so I have no idea abt Customer value created to compare both.. If you do, please let me know..

    And p.s. This is a model to apply for Customer Services, not overall company strategies.. ;)

    Thx.
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  • Wim,

    Can you locate Amazon.com and the [’old’] Zappos.com on your curve? Which business model is more effective and profitable from the customer and the company perspectives?

    Also, why did Amazon buy Zappos? And, why did Zappos sell to Amazon?

    Arie.

    @ariegoldshlager
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  • Problem with Customer-centricity as a destination...

    you never get there. So, having a hard division of when and how you reach the ultimate customer-centricity stage is not going to work for organizations. they would either dismiss it as being too hard to achieve, or too snobbish and push it aside. it works better as a sliding scale with different levels -- like a maturity model of sorts. You can be customer-centric without being co-designing processes with your clientst -- just not the same level. If you can reflect this, you are 1/2 way home to adoption.

    2. on six-sigma... you risk alienating those that decided not to go in that direction, they may think that they need it to get started. you know how they say a picture speaks a thousands words -- no matter how many of those words say 'you don't need six sigma' they won't listen because it is in the picture (same thing with design thinking). i would make the axis or divisions more about structured - flat-hierarchy approach to customer service. on one end you would have something like design thinking and on the other you would have six-sigma and its stupid --- er, inflexible cousins... in between is where people like to live.

    i like the approach and the labels you got for the arrow, just would change the context so organizations would feel more comfortable adopting the model and the concepts.
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  • Hi Arie,

    The company is still in the driving seat of.. the company.. I think the risk of being 'Customer Centric to a fault' is very, very low.. But if the company fails to make money from its Customer Centric efforts its likely to have other root-causes that Customer Centricity itself, such as there are:.. failure to understand their Customer desired outcomes, underpricing, neglecting competition, too high costs, over-promising of the value proposition etc etc..

    Interesting question abt the Customer's focus. I don't think Customer's focus needs to be (or is for that matter) on the company.. The company can manage its own interests. Customers will (and should) focus on their own needs and wants.. If that includes helping the company get better, which in the end will benefit them too, that's just great..

    Comments? Are we on the same page? More thoughts to share.. Please let me know.

    Thx
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The New Cost To Value Curve

  1. 1. MY NEW CUSTOMER SERVICES ‘COST TO VALUE’ CURVE<br />VALUEEXCELLENCE<br />PRO-ACTIVE <br />IN NETWORKS<br />LEAN/6-SIGMA<br />SERVICE EXCELLENCE<br />SERVICE DESIGN THINKING<br />OPERATIONAL EXCELLENCE<br />CROSS-FUNCTIONAL COLLABORATION<br />RE-ACTIVE<br />IN SILOS<br />CUSTOMER CENTRIC<br />COMPANY/PRODUCT/COST CENTRIC<br />OUTSIDE-IN PROCESS CENTRIC<br />WimRampen; http://contactcenterintelligence.wordpress.com; twitter.com/wimrampen; wim.rampen@planet.nl<br />

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