Not all customers are equal, how we determine our segments manage the accountability around these segments can be very powerful towards the achievement of improved profitability, cash flow and customer satisfaction.
4. Segmentation
Segment
Customers who
we want and
customers who
want us
Power relationship
The power
between us
and our
customer is the
same
Details
Customers who
want us have a
co dependency
and value what
we do for them
5. Segmentation
Segment
Power relationship
Customers who
we want and
The power is
customers who
with the
are not necessary
customer
dependent on our
value offer
Details
Customers who
are not
dependent on us
does not mean
they are not
valuable.
7. Segmentation
Segment
Customers who
we donât want and
customers who
are not dependent
on us
Power relationship
There is no
relationship,
transactions
are based on
convenience.
Details
These just exist
lets make sure
they are at least
profitable
8. Customer Profile Matrix
Customer that
want us
Customers who
don't Need us
Customers
we want
1. Ideals
2. Converts
Customers'
we donât
want
3. Exploits
4. Monitors
16. Customer Profile Matrix
Customer that
want us
Customers who
don't Need us
Customers
we want
1. Ideals
2. Converts
Customers'
we donât
want
3. Exploits
4. Monitors
17. Customer Criteria definition
Defining the ideal customer (rated 1-5, 5 = ideal)
Customer
Behavior criteria
(examples)
a
b
c
d
Price
1
5
3
5
Ability to achieve targeted margins
Volume
1
1
5
5
Volume quantity and frequency quality
Operational
1
2
5
5
Ability to âfit inâ with the way we do business
Cost to acquire
4
4
Create your own criteria
1
2
..z
18. Customer Profile Matrix
Power Grid
Customer that want
Customers who don't
us
Customers
we want
Customers
"we donât
wantâ
Need us
1. Power is equal.
2. Power is with the
customer
3. We have the
relationship power.
4. We have no
relationship. These are
usually convenience or
spot transaction
customers.
19. Customer Profile Matrix
Power Grid
Customer that
want us
Customers who don't
Need us
Customers
we want
1. Strategy: Invest
2.
Strategy: Increase
switching cost. Migrate
to segment 1
Customers'
we donât
want
3. Strategy.
Increase price with
the intent of
migrating these
customers to
segment 1 or exit.
4. Strategy: Find an
alternative way to serve
these customers
Directional objective
20. Customer Profile Matrix
Power Grid
Customer that want Customers who don't
us
Need us
Customers we 1. Relationship
want
Management: High
2. Relationship
management: High
Customers'
3. Relationship
we donât want management: Low
4. Relationship
Management: Zero
21. Customer Profile Matrix
Power Grid
Customer that
want us
Customers who don't
Need us
Customers we
want
1. Acquisition cost: 2. Acquisition cost:
High
High
Customers' we
donât want
3. Acquisition cost: 4. Acquisition cots:
Very low
Zero
22. Customer Resource Map
Customer that want us
-
Customers who don't Need
us
1. Ideals
2. Converts
Customers we
want
Customers' we
donât want
1. Where are the majority of
resources currently spent
today?
2. Where should they4. Monitors
be
3. Exploits
spent?
Resources may include
ďSales cost
ďSupport cost
ďCost to serve
ďWarehouse
and inventory
cost
ďAfter sale and disposal cost
26. Customer performance system
Customer that want us
-
Today
Target
Customers who don't need us
Progress
Today
Revenue
Margin
Margin
Growth existing
Growth existing
Growth new
Customers
we want
Revenue
Growth new
Wallet share
Customers'
we donât
want
Wallet
share
Target
Progress
28. Grab our free E book
Its not the
numbers itâs the
fundamentals
Creating the
treasure map to
explore and
discover
That Improves
profit, cash and
returns
http://www.financialstatementstory.com
29. Mick is Chief Treasure Hunter. Over the last 30 years Mick has consulted with the
worldâs leading companies to identify and implement performance
improvements. He has discovered that behind every person and company is a
story. Sometimes itâs a rocking adventure, sometimes a comedy, a mystery, a
drama and on occasion, a tragedy. Going beyond mundane numbers and
engaging in the story is the key to helping companies and individuals build
corporate and personal wealth.
Mick Holly
Andre is our Evidence Wizard. He combines the Passion of intuition with the
Power of Evidence to weave amazing stories that reveal the secrets and treasures
that are locked within financial statements.
He has deployed the financial statement story discipline in over 150 different
companies releasing more than $500million in value and more importantly,
demystifying the financial statements for thousands of people.
Andre's favorite quote:
"If you change the way you look at things, the things you look at change"
Andre Gien