THE VALUE CREATION PROCESS

By Group “A”

What is value creation ?providing products and services to customers

that are a greater value than they could expect from purchases from competitive companies in similar markets

Conti…..The value creation process consists of three

key elements: Determining what value the company can

provide to its customers (the value customer receives)

Determining the value the organisation receives from its customers (the value organisation receives)

by successfully managing this value exchange, maximising the lifetime value of desirable customer segments

Conti…For many companies the value creation

means :How much money can we extract from the

customer? How can we sell them more of the existing

products and services they are buying?How can we cross-sell them new products and

services

Case studyfriends first : building the customer centric organization

Introduction: it is a leading financial service group in Ireland and division of EUREKO ALLIANCE , in 1998 the new group identity was launched

Services : insurance , banking ,and investment product

Customers – 2,20,000 Total asset – 4.5 billion euro

Conti…Today company have three businesses :

Friend first finance Friend first life Friend first international

Range of product :pension , permanent health , saving and investment plans , personal lending , and motor finance .

Issues in friend first Staffs are policy centric not customer /

broker

The organization structure was internal requirement of demand not customer need

IT platform was complex

Objectives

To solve the problem :Customer service core strategy “if we look after our customer better then the

competition than everything else that is important will follow “

Group distribution strategy 3 Different broker segment

Corporate and large Small and medium Retail financial institution

Making relationship with brokers New integrated system

Conti..Brand positioning Customer knowledge Product range and general principleSales and distribution channelServicing and sales support

The CRM solution Created customer service centre

Single integrated view customer / broker all business

Be flexible to accommodate changes in business strategy

Evolve the product and service portfolio through learning

SWOT analysis

Thank you