nLTV = ! (Ma)r

(a-1) / (1 + i)a - AC

a=1

Prof.dr. Henry RobbenNyenrode Business Universiteit

h.robben@nyenrode.nlwww.henryrobben.com

©Henry RobbenNOTE: The actual presentation contains more slides than there are in your handout

Know thy customer...

An industrial company enables the competitiveness

of its customers

Industrial

Company

Company's

Customers

Customers of

Customers

... hence creating profitable sales

for itself

Figure 2.4Perspectives on Derived Demand in Business Markets

... hence leading to more (less)sales of the industrial company's

products and services

More (less) demand by end customers, leads to more (less)

demand by the direct customers...

!"#$%!&!'%!'(&)$*#+%*#(!',#$-.$/#+',#/$/#0&./

!"#$%!+&!#1'($*#+%*#(!',#$-.$/#+',#/$/#0&./

Visionary Marketing.

! This new book by Moenaert, Robben and Gouw is now available. A great support during the process of developing your own business roadmap.

!

! VISIONARY MARKETING

! Building Sustainable Business

! isbn 978 90 209 7698 4

! publisher LannooCampus

! Says Philip Kotler:

! “Visionary Marketing will recharge your marketing battery”!

Marketing=

BuildingSustainableBusiness

MarketMaking

MarketFarming

MarketHunting

The Essence of Marketing.

Market

Hunting

Is about acquiring the right customers.

Market

Farming

Is about retaining the right customers, and create up- and cross-selling.

Market

Making

Is about developing the customer value proposition and determining the hunting grounds for your organization.

How far should you go in customer service?

Value Is Created By Fulfilling Needs.

Needs

Symbolic

needs

Functional

needs

Experiential

needs

Next: Photo

Creating Value Is A Multi-layered Process.

Your Company

Customer

Needs to Create

Value For Your

While Appropriating

Value For Who is the customer?

What is value to whom?

Who owns the customer?

You need an integrated image of your

customer!

Market Making: Customer Value Proposition.

Environmental

Safety

Styling &

Design

Functional

performanceCompatibility

User

convenienceServiceability

Pre-transaction

processes

Transaction

processes

Switching

cost

Product

image

Corporate

Reputation

Reliability &

Consistency

Acquisition

costDisposal

cost

Operating

cost

Professionalism

Post-transaction

processes

Market

presence

Empathy

User

community

Bundling &

Complementarities

Needs

Symbolic

needs

Functional

needs

Experiential

needs

Product

Service

Price Image

Customer

Process

Benefits O"ered

Brand

image

Moenaert, Robben, & Gouw

Market Hunting…How do we compete?

The hunting strategy.

Where do we want to compete? The

hunting grounds.

“Between 65% and 85% of the customers who change

suppliers are in fact satisfied with their previous supplier”

Reichheld

Market Farming.

Satisfaction versus Loyalty.

Loyalt

y

Satisfaction

1 2 3 4 5 6 7 8 9 10

Non-competitive

Zone

Highly Competitive

Zone

CS ! Loyalty !

Advocacy.

Satisfaction License to enter

Loyalty License to excel

AdvocacyLicense to lead

Persuading The Customer / 1.

Persuading The

Customer / 2.

#

• Product/ServiceThe core functional product or service your company offers

• Customer ProcessThe company/customer- interaction process, as perceived by the customer, by means of which your company identifies, builds and maintains relationships with its customers and delivers its offering

• PriceThe financial and non-financial costs your customers make in order to own or consume your products/services

• ImageThe beliefs, images, ideas or impressions the market holds about your company and/or the products you offer

Customer Process

Price

Image

Product/Service

© Moenaert, Robben & Gouw

Customers’ Outlook on Differentiating Advantage

(The CODA-model)

Market Leaders Change the Rules of

the Market or Excel at Them.

The Importance Of

Customer Processes…

Three Questions.

• Is your company a company that:

• wonders what happened?

• watches things happen?

• makes things happen?

Efficient& Customized

Convenience24/7

CompetitivePrices

Image :The proactive,

trustworthyPhonebank

Awareness(45 %)

Presscampaigns

Qualityawards

Word-of-mouth

recommendations

Successfultrack record

CustomerSatisfaction

(delight)

Leeds Workforce(empathy; language)

StaffRecruitment &

Training

Teams

Rotation

Employeesatisfaction

Cross-Selling

LimitedStaff

ACD : AutomaticCall Distribution

MidlandTechnologyBase (ATM)

HealthyCustomerBase (50 %

Acceptance)

Leedslocation

BRs handle 85%of inquiries

Hotdesking

Centralizedoffice

MINDICT Supervisors

AppropriabilitySuperior

Resources

Non-

SubstitutabilityInimitability

Efficiency Durability

Value@Customer

(Delivery)

Value@Company

(Capture)

Barriers@Competition

(Shelter)

SCA

© Moenaert, Robben, & Gouw

The Commodity Magnet Kicks In When You Do Not Have Competitive

Advantages.

Price

Cost-to-Serve

high

low

low high

$$Di"erentiation : Leverage

R.I.P.Stagnation : Demands$

Imitation :Choice

Competitive Advantage :Using scale and experienceto leverage with maximummargin to other customers

Competitive Imitation :Customers have a choice

between multiple suppliers

Competitive Standardization:Customers have a choicebetween standard o"ersand formulate demands

(Moenaert, Robben, & Gouw)

Building

Sustainable

Business With The

Right

Customers

Rip-Off

Idiot

Lobotomy

Drifting

Tredmill

Losing

Value Creation/Capture Business Exploitation/Exploration

Value@Company

Value@Customer

Changing the Business

Running the Business

© Moenaert, Robben & Gouw

Do you have the right resources to get the right image of your customer?

The Marketing Strategy Transformation Process.

The

Present

Business

Model

The Future

Business

Model

From Volume...

...to value.

“Good fortune is when opportunity meets planning”

T.A. Edison

“Growth for growth’s sake is the ideology of the

cancer cell” Edward Abey

“Strategy is not right or wrong.Strategy is a choice”

Ludo Wyngaarden

“Thinking is easy, acting is difficult, and putting one’s thought into action is the

most difficult thing in the world”J.W. von Goethe

The Business Roadmap:

What Do You Need To Do, and With Which Resources

Do You Do It?

What is it that your customer needs?

‘If you do what you always did,

you will get what you always got’

(Albert Einstein)

Or, what is more likely,much less and less!

(Moenaert, Robben, & Gouw)

Thank you for your patience...

Have a great and inspiring meeting!