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Sales Co-Creation


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How to move from value based selling to value co-creation with customers?

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Sales Co-Creation

  1. 1. SALES CO-CREATION Discover 8 ways salesorganisations canco-create value withtheir customers.
  2. 2. SALES CO-CREATION is part of the SALES 2020 research project which started in 2010 in collaboration with:
  3. 3. The aims of the project was to: •  Identify the differences between value based selling and value co-creating •  Identify how sales organisations can apply the principles of value co-creation in their sales organisation.
  5. 5. …because sales people are finding it increasingly difficult to add value to their customers. See our Sales 2020 presentation for more information.
  6. 6. As a result their products are considered commodities making the price the main factor for differentiation.
  7. 7. One of the reasons is due the way in which we define value.
  8. 8. For most organisations value is created by producing products and services which customers want to buy.
  9. 9. Customers are considered as targets …
  10. 10. … which need to be persuaded to buy their products and services.
  11. 11. Selling is therefore considered a cost, needed to distribute products and services into the market.
  12. 12. This view is highly product centric.
  14. 14. “Value for customers means that after they have been assisted by a full or self-service process they are or feel better off than before.” Chris&an  Grönroos  
  15. 15. This implies that value is created when the customer uses or consumes a product or service.
  16. 16. As a result products are merely vehicles to produce a service helping customers to get their job done.
  17. 17. This means that the role of sales people is to help their customers to get their jobs done and provide them with a good experience.
  18. 18. This implies that by getting involved in their customer’s jobs, sales people will co-create value with their customer.
  20. 20. Principle #1 FOCUS ON THE END AND NOT ON THE MEANS
  21. 21. “… here are the tools you asked for. Good luck with them!”
  22. 22. “… thanks for coming to show us how to use the tools to get our job done.”
  23. 23. The process lasts until the customer obtains the value the sales person promised them. USE Value The Long Sales Funnel SALES Sales Approach Co-Creation Approach
  25. 25. “… Let me tell you what we need.”
  26. 26. “Let’s figure it out together.” Value Co Creation Approach
  27. 27. Co Creation requires customers to actively participate in the process. Sales Approach Co-Creation Approach INTERVIEW DIALOGUE ASSEMBLY CO-DESIGN INTERNAL CO-DEVELOP Information Gathering Solution Design Solutions Development INFORMANT PARTNERCustomer Role REACTIVE PRO-ACTIVEUse
  29. 29. “These are our products and services.”
  30. 30. “These are the capabilities and know-how that we have.”
  31. 31. How  can  we  combine    our  capabili0es  and   know  how? How are my products solving your needs? Co-creation is about merging capabilities together to create value.
  32. 32. Principle #4 FOCUS ON LEARNING
  33. 33. “The more we repeat our approach the better we get at doing it.”
  34. 34. “Each time we co-create with our customers we develop new capabilities.”
  35. 35. Co-Creation is not about increasing efficiencies but about learning and increasing capabilities. LEARNING CAPABILITIES ACTIVE PARTICIPATION EXPERIENCE
  37. 37. FORMS OF VALUE CO-CREATION Crowd Sourcing Mass Customisation Peer to Peer Network Shared Resources Open Innovation Joint Ideation Experience Centres Product as a Service Icons:  h0p://  
  38. 38. Crowdsourcing is the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people. Icons:  h0p://  
  39. 39. Example Customer: CEO of a large organisation Functional Job To Be Done by the customer: “CEO’s want to compare their business outlook of the future with that of their peers.” Social Job To Be Done by the customer: “CEO’s want to impress their customers, suppliers and partners by participating in the survey. ” Emotional Job To Be Done by the customer: “CEO’s want to feel less uncertain about their business outlook. ” Many management consulting organisation solicit their customers to share their business outlook with them. After consolidating these outlooks, they produce their global yearly business reports. Based on this information they offer their customers the opportunity to benchmarking their business outlook with those of their peers. Example: Icons:  h0p://  
  40. 40. What could you source from your customers and partners to create new insights to help your customers with?
  41. 41. Mass Customisation is a process which combines the benefits of large-scale production with those of customisation. Icons:  h0p://  
  42. 42. Example Customer: CIO and IT project managers responsible for implementing ERP solutions in their organisation. Functional Job To Be Done by the customer: “We want an ERP system which can be tailored easily to our specific needs” Social Job To Be Done by the customer: “We want to impress the users of our ERP system.” Emotional Job To Be Done by the customer: “We want less stress when implementing and maintaining our ERP system” ERP software systems consists of different modules which customers can adapt to meet their specifc needs. These systems rely on smart configuration engines which assits the customer in their decision making as well as automate the configuration tasks for the system. The production efficiency is highly increased because the customer is direclty involved in the configuration of the final solution. Example: Icons:  h0p://  
  43. 43. How could you co-design solutions with your customers.
  44. 44. Peer to Peer networks are decentralised networks whereby all people act as both suppliers and as consumers to share some resources (often information). Icons:  h0p://  
  45. 45. Example Customer: Engineers that use Caterpillar’s equipment. Functional Job: “I want help to solve some engineering problem with my equipment.” Social Job To Be Done by the customer: “I want to share my knowledge and experience with others.” Emotional Job To Be Done by the customer: “I want feel like I made a difference to others.” The Caterpillar online community is an online B2B forum where professionals who work with caterpillar equipment can exchange information, find answers and get expert advice from their peers. People can give each other “kudos” on input they valued. They can also identify the response that provided the best solution to move the discussion further or end it. You do not have to be a caterpillar customer to joint the forum. The objective, according to caterpillar, is to bring the people in their industry closer together. Source: Example: Icons:  h0p://  
  46. 46. How could you network your customers together and leverage their individual capabilities to help each other.
  47. 47. Open Innovation is the practice of innovating with partners inside and outside the organisation and sharing risk and rewards with them. Source: wikipedia
  48. 48. Example Customer: Production managers in the textile industry. Functional Job To Be Done by the customer: “I want to continuously improve our quality, manufacturing performance and efficiency.” Social Job To Be Done by the customer: “We want to show our customers that we are at the leading edge in terms of technologies used in our production process.” Emotional Job To Be Done by the customer: “I want feel successful at my job.” Bekaert is a world market and technology leader in steel wire transformation and coatings, offering a very wide range of advanced steel wire products in many sectors around the world. For the textile industry, Bekaert manufactures card clothing products used for carding of staple fibers in short staple, nonwoven, woollen, semi-worsted and worsted applications. Bekaert developed with a science agency a new carding technology. This technology platform was tested and further developed in close collaboration with a number of customers. Example:
  49. 49. Could invite your customers to collaborate in joint innovation projects with other partners and customers?
  50. 50. Shared Resources is a practice where suppliers and customers share resources in order to co-create value. Icons:  h0p://  
  51. 51. Example Customer: Retail Manager or Purchasing Manager of a supermarket chain. Functional Job To Be Done by the customer: “We need good information to make good decisions.” Social Job To Be Done by the customer: “We want to to shows our customers that we have the best meet in our supermarkets.” Emotional Job To Be Done by the customer: “I want feel less stress managing our meet counters.” Many product manufacturers in the fast moving consuming industry perform regularly all sorts of consumer base research. This information can be very valuable for large retailers helping them to better predict future consumer behaviour and demand for specific products. By sharing this information with the retailers the account managers of these product manufacturers are able to participate in their customer’s product planning process. Icons:  h0p://  
  52. 52. Which resources, such as market research information, can you share with your customers in order to jointly create new insights.
  53. 53. Joint Ideation is a practice where suppliers and customers come together to brainstorm new ideas. Icons:  h0p://  
  54. 54. Example Customer: Business Executives . Functional Job To Be Done by the customer: “We need to implement our strategy and ideas quickly.” Social Job To Be Done by the customer: “We want to involve all the stakeholders in the exercise.” Emotional Job To Be Done by the customer: “We want to feel less stress in getting our strategy up and running.” Many system integrators developed business tools and methodologies to help their clients to structure their ideas and strategies and translate them into projects. One popular service consists of helping organisations to translate their strategies and ideas into a project roadmap. Icons:  h0p://  
  55. 55. How could you facilitate joint ideation sessions with your customers to come up with new business solutions?
  56. 56. Experience Centres allow customers and suppliers to engage and interact with products and services in a sensory ways. Icons:  h0p://  
  57. 57. Example Customer: Business and IT Executives within large organisation. Functional Job To Be Done by the customer: “We need to analyse how new IT innovations can help us to increase our competitiveness.” Social Job To Be Done by the customer: “We want to be seen in the market as modern and innovative organisation.” Emotional Job To Be Done by the customer: “We want to feel less uncertain when adopting new technologies.” One example are CGI’s (former Logica) SPARK centres were executives can come and can have a real experience with new innovative IT technologies and brainstorm on how these could help them to be more competitive. Because the technology is so new, customers need to come and see, touch and feel the technology in order to imagine what they could do with it. Example: Icons:  h0p://  
  58. 58. How could you provide your customers a sensory experience in order to generate new insights.
  59. 59. Product as a Service is the practice whereby customers pay for the use of products or services. Icons:  h0p://  
  60. 60. Example Customer: Truckers Organisations. Functional Job To Be Done by the customer: “We need to keep our trucks running with as little interruptions as possible.” Social Job To Be Done by the customer: “We want our customers to see that we outsource non core activities to strong partners.” Emotional Job To Be Done by the customer: “We want to feel less stress managing our trucks.” Michelin is a French tire producer who launched a tyre outsourcing service for its road transportation customers. This means that for a monthly fee Michelin does not only supply the tires but also maintain and repairs them. Such a service requires a vast geographical presence, which is needed to provide the required maintenance and repair work. This is achieved by converting Michelin’s distribution network into a service network, which will perform the maintenance and repairs on their behalf. For this solution to work three parties must collaborate, the customer, the distributor and Michelin, the manufacturer. Example: Icons:  h0p://  
  61. 61. How would your customers react if you would change your pricing model from ownership to pay for use or pay by outcome?
  63. 63. DEFINITIONS OF VALUE PRODUCT CENTRIC Value is created by producing products Customers are targets The role of the sales force is to distribute products and services into the market CUSTOMER CENTRIC Value is created by using products. Customers are partners The role of the sales force is to help customers in getting their jobs done. Source:  Vargo  and  Lusch,  2004,  “Service  Dominant  Logic”  
  64. 64. Remember: “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” Theodor  Levi0