bob gmeindl - acme corporation demo - 2016
TRANSCRIPT
Acme CorporationTM
Increasing Customer Valuein Products and Services
A facilitator led training
Group Exercise - Definitions
Define each of the following terms, in one sentence, in your own words:• Customer Satisfaction• Net Promoter Score (NPS)• Customer Value• Customer Lifetime Value (CLV)
Each group should be prepared to report their results to the class
You may use whatever research resources you have at your disposal (workstations, laptops, cell phones, etc.)15 minutes
Customer Satisfaction
Customer Satisfaction: How well your product or service meets or exceeds the customer’s expectations
Net Promoter Score (NPS)
Net Promoter Score: The likelihood that a customer will urge a friend or family member to use a company’s product or service
Customer Value
Customer Value: A combination of what a customer wants from a product or service; the benefit they derive from it; and what they will give or pay for it.
Customer Lifetime Value (CLV)
Customer Lifetime Value: How much a customer is worth to a company over the lifetime of their relationship
INTRODUCTIONS
Time to introdu
ce ourselv
es!
…and our goals.Overall training goal
To learn how to increase customer value, in light of Acme Corporation's strategic goals, when creating and marketing Acme Corporation's products and services
Detailed training goalsUpon completing this course students will
• Know Acme Corporation's strategic goals• Be able to define and describe customer value in their own words• Be able to determine the customer value of a product or service• Know how to increase customer value• Be able to use customer value to strengthen and create
competitive advantage
Speaking of goals…
What are general business goals?• To make a profit• To acquire, retain, and grow relationships
with your target customers
What are Acme Corporation's goals?• To make a profit• To be one of Canada’s dynamic companies• To be a good corporate citizen and operate
a responsible business
Group Exercise - ValueWhen determining the value of a product or service what elements do you have to consider and how do you define them? For example:
Element: Monetary valueDefinition: how much the item or service costs in the store or marketplace Single sentences in your own words
Each group should be prepared to report their results to the class
You may use whatever research resources you have at your disposal (workstations, laptops, cell phones, etc.)10 minutes
Evaluating a Product or Service
Value Element Definition
Technical General contribution to the technical spectrum of society
EconomicWhat is the maximum amount of money a customer is willing and able to pay for the product or service
Service The amount of effort required to use the product or service vs. the result
Social What society in general thinks of the product or service
Perception The positive or negative view held by the customer or their peers
Evaluating a Product or Service
Value Element Definition
Intrinsic The sum of the parts that make up the product or service
Environmental What effect the product or service has on the health of the environment
Production What it costs to produce the product or service
Exchange What a customer is willing to give in exchange for the product or service
Class ExerciseWhat are some value elements that Acme Corporation's products and services bring to their customers?
Where do you see these best illustrated?
Possible Value ElementsMonetary Technical Economic
Service Social Perception
Intrinsic Environmental Production
Exchange
What’s the
difference between:
CostPriceValue
Cost – what a business spends to produce the product or service
Price – what a business charges for the product or service
Value – what the customer believes the product or service is worth
For example:
The cost for a plumber to fix a burst pipe at a customer's home may be $5 for travel, materials costing $5, and an hour's labour at $30. A price of $40.
However, the value of the service to the customer - who may have water leaking all over their house - is far greater than the $40 cost, so the plumber may decide on a price of $100 or more.
Perceived Value"What's the difference between an $8,000 Rolex and a $40 Seiko watch?
For the most part, consumers are unaware of the true cost of production for
the products they buy.
The Seiko is a better time piece. It's far more accurate. The difference is your ability to sell."
Lawrence L Steinmetz
Perception Drivers• Packaging and design• Format - product
differentiation• Uniqueness• Availability• Speed of delivery• Price• Locale - where the product
is sold• Demand• Replacement cost
$
How much!!?
Apple iPhone 6s - $1,000 CAD
Rolex m86348sajor-0002 Pearlmaster Watch - $105,484.00 CAD
DKNY Golden Delicious Million Dollar Fragrance Bottle – $1,303,600.00 CAD
CUSTOMER VALUE
Customer Value
Customer Value: A combination of what a customer wants from a product or service; the benefit they derive from it; and what they will give or pay for it.
Customer Value Example
Two ProductsA social media tool with a sophisticated speech-processing algorithm. It helps you write more interesting status updates and tweets in order to get more shares, likes, and retweets. It leverages huge databases of specialized linguistics research and was engineered by several PhDs over the course of a few years.
A simple hack for an iPhone that lets parents find their children if they wander too far away in a mall, arena, or other crowded venue. It took one college kid a weekend to write.
Highly sophisticated; technical marvel; not really helpful
Worried parents know where their kids are - PRICELESS
Which has more value?
Group Exercise – Determining Customer ValueLet’s say Acme Corporation is launching a life, auto, and home insurance package.Pre-launch you are tasked with identifying the three most important customer value elements in this type of offering to help with the design of the product. What 3 questions would you ask of potential customers and the product creators, and what main value elements would you recommend marketing focus on?
Single sentences in your own words
Each group should be prepared to report their results to the class
You may use whatever research resources you have at your disposal (workstations, laptops, cell phones, etc.)15 minutes
Determining Customer ValueRemember, customers may not
always know what it is they value about a product or service
Determining customer value often requires research and active observation in both pre and post sale.
Determining Customer Value
It means asking the right questions!
What are the right questions?
What are you looking for in this product/service?
What do you expect to be able to do with this product/service?
How much would you be willing to pay for this product/service?Can we produce and sell this product/service at that price?
Assuming our competitors match our price, what will most influence your final decision?
Once you’ve bought it, how will you know it was the right decision?
What are the right questions?
It all depends…
Determining Customer Value
Enough with the ‘Zen master’ ‘one hand clapping’ mystery answers…Isn’t there some way we can tell?
What to Look For
Factors in determining increase in Customer Value
• increased sales of a product or service• increased customer use of a product or service• increased customer satisfaction• a higher Net Promoter Score (NPS) • decreased customer support costs• decreased customer training costs• decreased time to market• decreased development/product marketing churn
Group Exercise – Determining Customer ValueLet’s say Acme Corporation is launching a life, auto, and home insurance package.You are also asked to help determine the customer value of the product post-launch. What three questions would you ask to determine customer value?
Single sentences in your own words
Each group should be prepared to report their results to the class
You may use whatever research resources you have at your disposal (workstations, laptops, cell phones, etc.)15 minutes
Class Exercise
What are some ways for a business to increase customer value?
Ways to Increase Customer Value
Customer loyalty
• Demonstrating trustworthiness and commitment to the customer
• Provide customers with evidence of how this trustworthiness and commitment has been carried out in word and deed
Customer education
• Customers tend to “leave” because of another product or service that has a feature which they believe you do not have, even if you do.
• If you have a “moderately complex” product or service, it can be worthwhile to educate customers about it
Ways to Increase Customer Value
Improved customer experience
• Customers often leave because of the experience they receive as customers.
• Continuously improving your customer experience is a key driver of long-term customer loyalty, and starts with putting in place a system to continuously gather customer feedback.
• Encourage all employees that have contact with the public (which is all employees) to keep an eye out for ways to improve customer operations
• Make it easy for employees to float suggestions for improvement
• Provide a clear process for suggestions to be evaluated and, if worthwhile, implemented while publicly rewarding the employee(s) that brought the suggestion forward in the first place
Ways to Increase Customer Value
Build long-term relationships
• Be honest - Have your customer’s best interests at heart; show the customer you see them as more than just a pay cheque.
• Share - You have a plethora of skills and knowledge. Share it for free to boost your client’s confidence in your abilities, while also exposing them to a range of other products and services.
• Be a partner with the customer - Create a strategic partnership or alliance with your customer. A mutually beneficial relationship is the best and easiest way to build trust.
Ways to Increase Customer Value
Create brand loyalty
• Brand loyalty increases your Customer Lifetime Value because it encourages trials of a new product, facilitates repeat purchases and therefore extends the lifetime of your customers.
• Three major determining factors of brand loyalty are• The quality of products• Customer service• Shared values
• Anyone who says ‘brand loyalty is dead’ lives in a world where Apple doesn’t exist. Apple is a leader in brand loyalty because of its consistent quality, customer service, and the values it states in its mission statement.
Ways to Increase Customer Value
Provide multiple touch points
• According to a study by Harris Interactive, 56 per cent of customers would switch to another company if the alternative offered more options to connect with them.
• Having multiple points of contact, whether it’s via face-to-face, telephone, web or social media allows customers to choose how they’d like to interact with the business.
• Sixty per cent of consumers don’t want to be contacted over the phone about special offers, information and upgrades, while 75 per cent prefer contact via email or text message.
Ways to Increase Customer Value
Be aware of current trends and social consciousness
Recognize the multi-cultural nature of the Canadian audience
Understand the influence of religion, social taboos, and cultural preferences
Class Exercise
What are specific ways for Acme Corporation to increase the customer value of its products or services?
Name a product and one way you would increase its customer value.
Using Customer Value
At the end of the day, the sales process comes down to convincing a customer that your product is worth the price you’re asking.
Be Creative!Try things out!
I’m not sure this is working… But who knows???
Using Customer Value
Recognize the importance of flexible solutions
Naked Solution with Options
Use customer value to decide what needs to part of the ‘naked solution’ (meets basic needs identified by a majority of customers) or an option designed to meet the needs of a significant minority
Using Customer Value
Regularly review ongoing products and services to see if they still meet the customer value objective
Using Customer Value
Sometimes all you have to do is put things in terms the customer will
understand.
For example:JibJab increased their conversions when they raised their price from $9.99/yr. to $12/yr.Why was that? Because now, they could say that their product was only $1 per month! This broke the cost down to something that was much easier for people to comprehend — and now it was much easier for them to realize what a fantastic deal it was!
SUMMARY and CONCLUSION
Overall Training Goal
To learn how to increase customer value, in light of Acme Corporation's
strategic goals, when creating and marketing Acme Corporation's
products and services
Know & Understand Acme Corporation's Strategic Goals
• Make money by providing communications and media products and services that customers can rely on and be inspired by
• Build a more sustainable world while making our community and country stronger
Describe Customer Value in Your Own Words
• There are two aspects to customer value: desired value and perceived value.
• Desired value refers to what customers’ desire in a product or service.
• Perceived value is the benefit that a customer believes he or she received from a product after it was purchased.
Be Able to Determine Customer Value
• Market research• Asking good questions• Understanding the factors that
determine the increase/decrease of value
Know how to increase Customer Value
Understand the importance of various value elements in increasing Customer Value:
Monetary Technical Economic
Service Social Perception
Intrinsic Environmental Production
Exchange
Use Customer Value to strengthen and create competitive advantage
• Convince customers of the value of the products and services they buy
• Be creative• Use data• Look for flexible solutions
Questions?
Quiz
There will be quiz for this course, emailed to you, for you to complete and submit.
Please ensure that the facilitator has your email address.