Aegis Global Academy - Customer Asset Management

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Read on to know more about Customer Asset Management and why the "Customer" is always an asset!

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Aegis Global Academy - Customer Asset Management

  1. 1. Customer Asset ManagementWhy Customers Are Assets<br />
  2. 2. Why Customers are assets<br /> Do Organisations' view them this way ? No<br /><ul><li>Organisations obsessed with products, policies & competitions at best
  3. 3. Customers don’t feature in financial statements
  4. 4. Believe customers belong to the marketing & the service department at the best
  5. 5. Silo mindset make the management of every function an end by itself and isolated islands in the organisation</li></li></ul><li>Do OrganisationsView Them This Way ? No<br /><ul><li>Multiple management layers completely isolate top management from customer contact
  6. 6. Poor or inconsistent regulatory framework to protect against customers vis-à-vis financial mismanagement
  7. 7. Unlike financial stakeholders customers are not institutionally organised</li></li></ul><li>Do OrganisationsView Them This Way ? No<br /><ul><li>Believe that profit is generated through clever financial management and not through customers willingness to pay and sustained goodwill
  8. 8. Believe value is created in factories and not in the minds of customers who has a choice whether to buy the product or not at the price the company derives </li></li></ul><li>Why Customers Are Assets<br /><ul><li>Only self sustaining long term revenue source
  9. 9. Has multiplier potential can bring referral business
  10. 10. No predefined output potential can consume multiple products
  11. 11. Cost of maintenance goes down with age -requires lesser handling as tenure of association ship expands</li></li></ul><li>Why Customers Are Assets<br /><ul><li>Value enhances with age – buys not just for himself but also for dependants
  12. 12. Contribution to profits enhances with age- sunk cost of acquisition gets completely recovered overtime + lower cost to serve due to greater familiarity with the organisation and its products</li></li></ul><li>How To Make It AReality<br />Organisational mindset Change<br />Data Capturing & Mining<br />Mass customization<br />Adapting new marketing paradigm<br />
  13. 13. What Can Change The Mindsets<br /><ul><li>Severe competitive pressure through massive proliferation of choice
  14. 14. Market saturation: No scope to grow by merely expanding into new geographies
  15. 15. Sustained high customer attrition rates
  16. 16. Attaining financial reporting to profitability by customer and not by product or product division</li></li></ul><li>What Can Change The Mindsets<br />Tougher regulatory framework for consumer interest protection<br />Orientation of management academic curriculum towards “Customer orientation” as opposed to the current functional orientation<br />Evaluation of corporate performance on the basis of time scale rather than the current snapshot accounting<br />
  17. 17. What Can Change The Mindsets<br />RecognisingDrucker’stimeless words of wisdom – Profit is the outcome of creating a satisfied customer and not the end adjective of business<br />Realising that there are no results in the walls of an organisation. The end result of a business is a satisfied customer : Peter Drucker <br />
  18. 18. What Can Change The Mindsets<br />Acknowledging that the only person who pays all the bills/debts of the organisation is the customer<br />Understanding that marketing only creates promises and not customer loyalty<br />Recognising that loyalty is created only through customer centric behaviour on the part of the entire organisation<br />
  19. 19. What Can Change The Mindsets<br />Realising that customer loyalty is not possible without employee loyalty and thus investment in training and development and empowerment of employees is critical towards attaining a sustained competitive edge<br />Customer satisfaction sure linked compensation for entire organisation<br />Mandating customer facing “time” for all employees at regular intervals<br />Recognising and rewarding customer centric behaviour<br />
  20. 20. Data Capturing & Mining<br />Investing in periodic customer satisfaction studies<br />Investment in analytical tools<br />Training front – End staff<br />Rigorous review mechanism for data sanctity<br />Rewarding customer for furnishing personal data<br />
  21. 21. Data Capturing & Mining<br />Rewarding customer for elongating tenure<br />Robust time bound escalation mechanism for unresolved customer issues<br />Research to understand customer situations/settings and not just usage behavior<br />
  22. 22. Mass Customization<br />Extensive use of segmentation tools to identify affinity groups<br />Customized products<br />Customized engagement processes for adoption of the products by different customer segment<br />Understanding that its customer centric people who create effective mass customization and not sophisticated analytical tools<br />
  23. 23. New Marketing Paradigm<br />Marketing needs to now focus on not just “what” the needs is but “how” does the customers go about satisfying that need.<br />Need to enhance the product definition of a product or service to “providing customer solutions / experience”<br />

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