The document discusses the importance of understanding customers and being customer-centric. It provides information on customer needs, wants, buying behaviors, and factors that influence purchasing decisions. It emphasizes that customers should be the top priority and that businesses need to truly understand their customers in order to meet and exceed their expectations.

2. What do you think about this ?

3. Customer A person or organization who uses the product or services we provide. … .only customers judge quality; all other judgments are essentially irrelevant Our greatest asset is the customer! Treat each customer as if they are the only one! LAURICE LEITAO

4. All People Have Needs and Wants.

5. Needs and Wants Change. As you go through life, needs/wants may change or become less important. In high school you might want a backpack. When you get older, the professional image of a briefcase is desired.

6. Many Factors Cause Needs/Wants to Change. Age Educational level Marital status Income level Parenthood

7. Many Factors Cause Needs/Wants to Change. Place of residence Influence of friends and relatives Culture Seasons of the year Economic conditions

8. Is Selling like this ……?

9. Selling Problem Great strategy Different technology Product cycle Good relationship

10. Why Customer so important ???? Value for the Money Customer Needs Diversification Demand for better service capabilities 1. Global Competition 2. Low Profitability 4. Customers Needs Change 3. Technology Improvement Proliferation of Competition Convergence of Technologies Erosion of Monopoly Increased Sophistication Internet & e-Commerce Supply Channel Interaction New Business Model Matured Industry Supply exceeding Demand M&A International Alliances Dramatic Global Shift Customer Focused

11. Why is Customer Important ???? 1960s 1970s 1980s 1990s 2000s 2010s 1 Reduce Costs 2 Leverage Investments 3 Enhance Products & Services 4 Enhance Executive Decision Making 5 Reach the Customer 6 Participate in Global Village 2020s Today we face the 5 th wave of innovation

12. Why are Customer Initiatives Important ? 1960s 1970s 1980s 1990s 2000s 2010s Reduce Costs 2 Leverage Investments 3 Enhance Products & Services 4 Enhance Executive Decision Making 5 Reach the Customer 6 Participate in Global Village 2020s 1 Optimize Resources & Minimize Costs Increase Revenue Remain In Business Customer Initiatives Decision Support Initiatives Operational Initiatives Financial Initiatives

13. 6 - BUYING-DECISION PROCESS Need recognition Identification of alternatives Evaluation of alternatives Purchase and related decisions Post purchase behaviour INFORMATION Commercial sources Social sources SITUATIONAL FACTORS When consumers buy Where consumers buy Why consumers buy Conditions under which consumers buy PSYCHOLOGICAL FORCES Motivation Perception Learning Personality Attitude SOCIAL AND GROUP FORCES Culture Subculture Social class Reference groups Family and households Copyright © 2000 McGraw Hill Ryerson Limited

14. Think about Starbucks Why are consumers willing to pay $ 4.50 for a cup of coffee? Who are Starbucks’ target markets? What is the marketing communication message Starbucks wants to convey? Why has Starbucks been successful?

15. Consumer buying behavior- key questions

16. Adoption Styles 0 5 10 15 20 25 30 35 40 45 Innovators Early Adopters Early Majority Late Majority Late Adopters % 2.1% 13.5% 34% 34% 16.4% Percentage of population types of adoption : Time of Adoption of Innovation

17. Goal of Adoption Process Awareness Interest Evaluation Trial Repeat Usage Advocacy Usage Unawareness To understand how to increase customer in Ladder of Adoption

18. Value Creation Selling Devote large amounts of time and energy Understand how your customers do business and how you can help them improve that business Know not only your customers but also your customers’ customers recognize that the execution of this new approach will require much longer cycle times to produce an order and generate revenue

19. Where would you place your utility/energy company? Are You Here? Here? Or Here? Discount Your Customers Focus on Core Customer Service Focus on Caring Customer Service Acknowledge - Appreciate - Affirm - Assure Customer Grade Outstanding A Exceeds B Satisfactory C Unsatisfactory D Failing F Impatient - Rude - Sarcastic - Ignore - Blame Others Provide Basic Products, Programs, Services

20. How Is A Customer Delighted? Expectations Customer attitudes which form a framework for judging performance. Quality A bundle of tangibles and intangibles a customer takes into account when evaluating the experience Value The quality of an experience as perceived by the customer and related to its cost Utility Touch Point Experience The point at which the customer interacts or touches the organization. Satisfaction The measure reflecting a customers experience against their expectations. Delight A condition in which experience exceeds expectations.

21. Customers Value Package Environmental - the physical setting in which the customer experiences the delivery of the product. Aesthetic - any sensory experience that affects the perception of value (flavor, visual appeal, smell, temperature, music, sound levels). Interpersonal - the customers’ experience or human interaction with those who deliver the product or service. Deliverable - anything of which the customer takes custody, even temporarily. Procedural - what an individual must go through to function as a customer (waiting in lines, filling out forms, visiting numerous facilities). Informational - the information a person needs to function as a customer (where to go, who to contact, payment amount, office hours). Financial - what the customer pays for the total experience, as well as the nature of the financial interaction.

22. Categorize and Target Customers Customer Value Is High Customer Value Is Low Customer Loyalty Is Low Customer Loyalty Is High Know The Customer and Make It Known Perform to Customer Value Package Exceed Customer Expectations Support Multiple Channels Remember to Sell Migrate to Digital Channels Where Greatest Results Are Achieved Convert Customer e.g. Current customer – profitable – receiving service from another provider Monitor Customer e.g. New customer – potential future profitability Upgrade Customer e.g Current customer – was profitable – now strong advocate Retain Customer e.g. Current customer - profitable

23. Why are sales process broken ? More often interact with the purchasing department All about price Training materials about not willing to be rejected, not subject to pressure, does not compromise on the price Change the incentive system Not involved in the design firm offer Sales force is reorganized to better focus on the customer Focus in internal Do not care about the customer from the customer Management believes they have been doing well October 26, 2006

24. How to improve the sales process is broken ? Conducting the sales is not the target but merely symptoms of a successful communication

25. How to become partner with your customer ? Knowing customer needs Target and priority of customer Barrier competitive customer

26. How to become a trusted partner of the customer Customer opportunities and anatomical information dynamics of competition Customers of customers and competitors customers Corporate culture, psychology, and the dominant force on the company's customers How to make decisions on customer organization customer's goals and priorities, both short and long term, clearly and specifically

27. How well do you know your target customer? Who What When Where Why How Use the people at your table to help you! B2B – Are you targeting specific industries, geographies or functional roles? B2C – Are you targeting specific demographic or psychographic segments? Are there primary targets as well as influencers that should be considered? Are the needs of your target segment aligned with what you’re selling? Do the features that differentiate your service matter to the target audience? What do you expect those needs to be in the future? When in the purchase cycle are services introduced to the target client? Are there specific catalysts that drive customers to seek you out? Are competitors exploiting gaps in your coverage of the sales cycle? Are you approaching customers in the manner and location that aligns with their decision-making processes? Are your channels aligned with the target customer’s needs? Is your service the best use of the client’s dollar right now relative to competing priorities? Why is your company the best choice for them in this category? Do you have unique capabilities/assets that matter to your target audience? Are capability gaps impairing your ability to execute? How does your organization achieve alignment to focus on these capabilities?

28. Knowing customers’ needs, wants, and motives lets you tailor your presentation to each customer.

29. Five steps to make your business (more) customer-centric Based on experience acquired by working with #1 Understand it’s a mindshift game #2 Show them the money #3 Make the customer voice actionable #4 Pick your battles carefully #5 Build a movement (...)

30. for more information on these slides can email to: mochkurniawan99@gmail.com