Customer Management Value Chain - characteristics of hypercompetitive market, principle of Consumption Chain and Attribute Map

1. Entrepreneurial Mindset
Hypercompetition
Doug Leather – REAP Consulting (Pty) Ltd – 8 September 2009
Customer Management Activism

2. REAP Consulting (Pty) Ltd
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3. Customer Management Value Chain
Superior Business Performance
(Short and long term)
Customer Behaviour
(Retention, Acquisition, Development”)
Committed Customers
(“Loyalty”, “brand equity”)
Experience of Interaction with Brand / Channels
(Efficiency/Effectiveness - Functional & Emotional)
How Employees behave and feel
(Promises they make and must keep to customers & each other)
Corporate Competence in Customer Management
(Corporate guidance and support provides context)
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4. Hypercompetition
 Competitors will become smarter and/or more aggressive
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5. Hypercompetition
 It is costing more and more to compete
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6. Hypercompetition
 Success of any strategic move will become much more uncertain
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7. Tool: Transform the customers’ experience
 Basic premise: Customers care about their needs, not your offering
 Only when they prefer to satisfy their needs with your offering do you
have a business
 Rich rewards for deeply understanding customer experience
 Tool: The Consumption Chain
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8. Consumption Chain for Service Business
CURIOSITY
AWARENESS SELECTION
TRIAL
CONTRACT
REFERRALS RENEWAL AGREEMENT TO
JOIN
CONTRACT
PARTICIPATION CONCLUDED
PAYMENT
Source: The Entrepreneurial Mindset – McGrath and MacMillan
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9. Re-engineering the Attribute map of your
offering
 Reconfigure attributes of your products and services to create meaningful
differentiation for key customer segment
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10. Reconfiguring Attribute Map
BASIC DISCRIMINATOR ENERGISER
POSITIVE NON NEGOTIABLE DIFFERENTIATOR EXCITER
ENRAGERS, TERRIFIERS,
NEGATIVE TOLERABLE DISSATISFIED
DISGUSTERS
PARALLEL
DIFFERENTIATORS
NEUTRAL SO-WHAT’S NO SUCH BEAST
NICE, BUT NO ORDER
FROM ME!
Source: The Entrepreneurial Mindset – McGrath and MacMillan
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11. Conclusion
"There are no secrets to
success. It is the result of
preparation, hard work, and
learning from failure."
-- Colin Powell
Doug Leather +27 83 3271010
doug.leather@reapconsulting.com
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