2012 © the summit group the summit group creating higher customer value across agencies business...

2012 The Summit Groupwww.summitvalue.com The Summit Group Creating Higher Customer Value Across Agencies Business Council for International Understanding Interagency Trade Officer Course

2012 The Summit Groupwww.summitvalue.com to gain knowledge accumulate; to gain wisdom, eliminate. - Chinese Proverb

2012 The Summit Groupwww.summitvalue.com Lessons from the Private Sector The Summit Group Value Principles Value Thought Creation Framework Business Issues & Initiatives Worksheet Total Value Creating Third Box Thinking TM Value Statements Customer Business Compass

2012 The Summit Groupwww.summitvalue.com Navigating Customer/Client Interactions

2012 The Summit Groupwww.summitvalue.com Observable 5-10% Observable 5-10% Dangerous 95-90% Dangerous 95-90%

2012 The Summit Groupwww.summitvalue.com Understanding the Client The problem defined is the problem solved The opportunity found is the opportunity leveraged

2012 The Summit Groupwww.summitvalue.com What is Value? Costs Value = Benefits - Costs Benefits Tangible Measurable Perceived Customer Defined Business Personal Political Capital Learning Curve Switching Costs Opportunity Costs Aggravation/Frustration Economic Measurable Cost Benefits

2012 The Summit Groupwww.summitvalue.com Keys to Value Creation 1. Knowing Your Customers Business Understand what value the client is trying to create for their own customers, and for themselves 2. Knowing Your Agencys Capabilities Understand what value you can provide for both the client and THEIR customers Understand the so what of the value you provide 3. Knowing Other Agencies Capabilities Understand what value other agencies can provide that you cannot

2012 The Summit Groupwww.summitvalue.com The Summit Group Global Research How clients want to be served?

2012 The Summit Groupwww.summitvalue.com How Clients Want to Be Served Organization-facing skills Leverage all of your assets Manage multi-level relationships Manage virtual teams Manage execution Client-facing skills Anticipate needs (proactive innovation) Listen beyond product/service needs Be a consultative problem-solver Sell in financial value terms Conclusions: Clients want to deal with business people Higher order of business acumen required Be real Based on research ITC, London School of Economics, The Summit Group

2012 The Summit Groupwww.summitvalue.com Summit Group Tools for Knowing Your Customer and Creating Value

2012 The Summit Groupwww.summitvalue.com Value Creation Thought Framework What do they care about? What are their critical business issues? What will be important to them? What value do they rely on to win? What do you have? How does what you have impact what they care about? How do you communicate this? Prove it!!! THEM US FIT PROOF

2012 The Summit Groupwww.summitvalue.com Value Thought Creation Framework What do customers care about? What issues do they focus on? What will be important to them? What value do they rely on to win? What do you have to offer? How does what you have impact what they care about? How do you articulate this? Prove it !!! Value Creation Thought Framework THEM US FIT PROOF

2012 The Summit Groupwww.summitvalue.com Customer Business Compass Market / Brand Initiatives What the customers brand means (What does the customer desire the brand to mean in the market?) How does the customer maintain and sustain their current customers (loyalty)? How does the customer attract new customers? Market / Brand Initiatives What the customers brand means (What does the customer desire the brand to mean in the market?) How does the customer maintain and sustain their current customers (loyalty)? How does the customer attract new customers? Financial Initiatives What drives income and balance sheet requirements? What are the investment opportunities? Are there financial re-engineering needs? What are the critical measures and milestones? Financial Initiatives What drives income and balance sheet requirements? What are the investment opportunities? Are there financial re-engineering needs? What are the critical measures and milestones? Strategic Initiatives What the end state is in what markets does the customer want to be? What markets does the customer choose to divest? What are the steps to getting there? Strategic Initiatives What the end state is in what markets does the customer want to be? What markets does the customer choose to divest? What are the steps to getting there? Competitive Initiatives Who are the competitors, and their strategic direction in the market where the customer is and where the customer wants to be? What are the customers capabilities/state of readiness to win in its desired marketplace? What are the marketplace requirements? Competitive Initiatives Who are the competitors, and their strategic direction in the market where the customer is and where the customer wants to be? What are the customers capabilities/state of readiness to win in its desired marketplace? What are the marketplace requirements?

2012 The Summit Groupwww.summitvalue.com Value Creation Thought Framework What do customers care about? What issues do they focus on? What are key business compass issues? What will be important to them? What value do they rely on to win? Exercise One Exercise One 1.In your group, pick a sample of two different clients that typically require assistance from two different agencies represented at your table. 2.Note who they are, what kind of businesses they may be, and what agency you represent. 3.Note, for each, what you believe they care most about using the points on this chart and what their needs are. 4.Brainstorm within the group for each client chosen. 5.Pick spokespersons to cover with the rest of us. THEM

2012 The Summit Groupwww.summitvalue.com Exercise One 15 minutes for discussion USG Agency Contacted Client (name and brief description) What Do They Care About? (compass focus) Client Issue(s) (plus urgency rating) Urgency rating: 1-5, 1=not urgent, 5=extremely urgent

2012 The Summit Groupwww.summitvalue.com Know How to Matter More Assess and understand client issues Know how to prioritize for maximum benefit Evaluate your value (impact) to the client

2012 The Summit Groupwww.summitvalue.com Third Box Thinking What do you have that is relevant? What does the client care about? What does your clients customer care about? Your AgencyThe Client Your Clients Customer Bring?Care About?Seek? Value Creation Value Proposition

2012 The Summit Groupwww.summitvalue.com Client Issues Your Agency The Client Their Customers Competition Suppliers Substitutes Industry / Geographic / Political Barriers Customers How do we create the Superior Customer Experience? Raving fans Loyalty Differentiation Premium pricing

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about?

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves?

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant?

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business Leisure

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business Leisure Business

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business Leisure Business On-time depart/arrive Routes Schedules/frequency Frequent Flyer Programs Up-grades Early entry onto flights Safety Price Food Ease of making reservations Courteous staff

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business Leisure Business Brand Image On-time depart/arrive Routes Schedules/frequency Frequent Flyer Programs Up-grades Early entry onto flights Safety Price Food Ease of making reservations Courteous staff

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business Leisure Business Brand Image On-time depart/arrive Routes Schedules/frequency Frequent Flyer Programs Up-grades Early entry onto flights Safety Price Food Ease of making reservations Courteous staff Reduce balance FF Points Reduce financial liability Strengthen brand loyalty with high volume business travelers Differentiate FF Program Better leverage partner relationships - Disney

2012 The Summit Groupwww.summitvalue.com Third Box Thinking TM CNN-Delta Air Lines YOU CUSTOMER CUSTOMERS CUSTOMER What do they care about? What do they want for themselves? What do you have that is relevant? $6M TV Campaign Media Buyer -Price -Viewership / Reach -Programs $50K/spot $49K/spot $48K/spot $47K/spot Business Leisure Business Brand Image On-time depart/arrive Routes Schedules/frequency Frequent Flyer Programs Up-grades Early entry onto flights Safety Price Food Ease of making reservations Courteous staff Reduce balance FF Points Reduce financial liability Strengthen brand loyalty with high volume business travelers Differentiate FF Program Better leverage partner relationships - Disney Programming / Price Braves Hawks WTBS CNN-X TNT TCM MGM Movies HB Cartoons Cartoon Network Video Production Facilities

2012 The Summit Groupwww.summitvalue.com Third Box Thinking Exercise Two Part One Using the same clients as before (unless your group wants to substitute new ones) 1.Note what their customers need, want, care about, and expect from YOUR client under the third box 2.Note what YOUR client wants in terms of what is important to them in serving THEIR clients under the second box 3.Dont complete the Agency Box Your Agency The Client Their Customers

2012 The Summit Groupwww.summitvalue.com Exercise Two 15 minutes for discussion USG Agency Client Clients Customers 2 What do they want in terms of serving THEIR customers? 1 What do they need / want / care about?

2012 The Summit Groupwww.summitvalue.com Value Thought Creation Framework The Total Value-Based Offer Internal Sources CompanyWide Organization Strengths CrossFunctional Solutions External Sources Other Suppliers Partnerships Strategic Alliances Your Standard Products & Services

2012 The Summit Groupwww.summitvalue.com Value Thought Creation Framework Value Creation Enablers Products Services Offer Enablers Agency Strengths Agency Assets Partnerships/Relationships Products Services Offer Enablers Agency Strengths Agency Assets Partnerships/Relationships Your Total Value Capability Key Customer Value Drivers

2012 The Summit Groupwww.summitvalue.com Training (Product, Application, Sales, Quality) Risk Sharing Options Market Intelligence Leverageable Relationships Third Party, Ventures, Political, Regulatory, Executive Intellectual Property Market Data, Process Expertise, Reports, Studies, Industry Trends, Research, Best Practices, Etc. Potential Sources of Value Beyond the Service

2012 The Summit Groupwww.summitvalue.com Exercise Two Part Two: Complete Agency Box USG Agency Client Clients Customers 2 What do they want in terms of serving THEIR customers? 1 What do they need / want / care about?

2012 The Summit Groupwww.summitvalue.com Third Box Thinking Exercise Two Part Two Complete the Agency Box with your Offer Enablers Your Agency The Client Their Customers

2012 The Summit Groupwww.summitvalue.com Value Thought Creation Framework Value Creation Thought Framework What do customers care about? What issues do they focus on? What will be important to them? What value do they rely on to win? What do you have to offer? How does what you have impact what they care about? How do you articulate this? Prove it !!! THEM US FIT PROOF

2012 The Summit Groupwww.summitvalue.com Offer Enabler Development Exercise Three Same Small Teams/ Same Clients Describe Agency Offer Enablers / Value Capabilities Include Agency Capabilities and Those Potential Enablers Outside the Agency Use Business Issues and Initiatives Worksheet to complete exercise

2012 The Summit Groupwww.summitvalue.com Business Issues and Initiatives Worksheet Business Issues and Concerns (What does this client care about?) Example of Client Issue That We Can Impact What Do I Have That Can Impact This Issue? What Does Your Solution Impact (in Client Terms) (As specifically as possible, define and quantify relevant the benefit) 1.Same Small Teams / Same Clients 2.Describe Agency Offer Enablers / Value Capabilities 3.Include Agency Capabilities and Those Potential Enablers Outside the Agency 4.Be Granular and Descriptive About Each FIT

2012 The Summit Groupwww.summitvalue.com Compelling articulation of the Value Statement is essential for client buy-in and business dialogue Components of a Value Statement THEM US FIT PROOF Our understanding of their business issues/needs/ concerns What we do and how we operate How we think what we do can make a difference for them How weve done it for others

2012 The Summit Groupwww.summitvalue.com Value Statements for a Demographic of One Transcend the Business Silos Be a Storyteller of Value Relevance Test: Who? So What? How Much?

2012 The Summit Groupwww.summitvalue.com 1. IDENTIFY KEY ISSUES AND HOW YOU CAN IMPACT THEM. Identify the key issues for this client that you believe you can impact. Identify your corresponding Offer Enabler / deal components and how you think each will directly impact these issues. Include, wherever possible, collaboration between agencies. Value Statement - Primary Talking Points What do they care about?What do you have? Include potential Offer Enablers from inter-agency cooperation. Impact (1-3 Words) 2. CREATING THE VALUE STATEMENT (Putting it together) Provide Examples: Whom have you done this for before?What were the results? Articulating the Value Statement: The Relevance Test

2012 The Summit Groupwww.summitvalue.com Value Statement Exercise Four 1.Same small teams/ same clients 2.Build the components of a Value Statement

2012 The Summit Groupwww.summitvalue.com Understanding the Client The problem defined is the problem solved The opportunity found is the opportunity leveraged

2012 The Summit Groupwww.summitvalue.com Focus On/Think About Why this client? What is the Real need what really needs to get fixed, changed, known? Why us? Relationships, Connections, and Networks what other agencies could help? Why now? What is the VALUE of potential business impact? Understanding the Client

2012 The Summit Groupwww.summitvalue.com Summit Group Tools for Knowing Your Customer and Creating Value

2012 The Summit Groupwww.summitvalue.com Creating Business Value Remember: Why Them? Why Us? Why Now?

2012 © the summit group the summit group creating higher customer value across agencies business...

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