Chapre 10 Customer Relationships

8/6/2019 Chapre 10 Customer Relationships

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BusinessBusiness--toto--BusinessBusinessMarketingMarketing


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3. Delivering Value3. Delivering Value

The ProcessofThe Processof

Sustaining Customer RelationshipsSustaining Customer Relationships


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Session 13: Sustaining CustomerSession 13: Sustaining CustomerRelationshipsRelationships

OverviewOverview

I. Definingthe ProcessI. Definingthe Process

II. ThinkingStrategically AboutII. ThinkingStrategically About

RelationshipsRelationshipsIII. Delivering RelationshipIII. Delivering Relationship--SpecificSpecificMarketOfferingsMarketOfferings

IV. Pursuing Growthand ContinuityIV. Pursuing Growthand Continuity

V. CompetingThroughBusiness NetworksV. CompetingThroughBusiness NetworksVI. ConclusionsVI. Conclusions


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Sustaining Customer RelationshipsSustaining Customer Relationships

SustainingcustomerrelationshipsSustainingcustomerrelationships isistheprocessof:theprocessof:

fulfillingmutuallyagreeduponfulfillingmutuallyagreeduponcustomerrequirementscustomerrequirements

inasuperiorwayovertimeinasuperiorwayovertime

andand

pursuingatargetedshareofapursuingatargetedshareofa

customers businesscustomers business through buildingmutualselfthrough buildingmutualself--

interest.interest.


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WorkingrelationshipWorkingrelationship referstothereferstothestrengthandextentofeconomic,strengthandextentofeconomic,technical,service,andsocialties betweentechnical,service,andsocialties betweentwoormoretwoormorefirmsfirms..

PersonalrelationshipPersonalrelationship capturesthesocialcapturesthesocial

andeconomicties betweentwoormoreandeconomicties betweentwoormoreindividualsindividuals..

Defining

the

Process

Defining

the

ProcessTypesofRelationshipsTypesofRelationships


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Definingthe ProcessDefiningthe ProcessBe Awareofthe Distinction!Be Awareofthe Distinction!

Relationshipmarketinghastwomeanings:Relationshipmarketinghastwomeanings: TheestablishmentoflongTheestablishmentoflong--term,trusting, winterm,trusting, win--

wintieswithvaluedcustomerfirmsthrough:wintieswithvaluedcustomerfirmsthrough: deliveryofhighqualityproductsdeliveryofhighqualityproducts

outstandingserviceoutstandingservice soundtechnicalsupportsoundtechnicalsupport

andand

atfairpricesatfairprices

Wininganddiningyourfavoritecustomers.Wininganddiningyourfavoritecustomers.


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II. ThinkingStrategicallyII. ThinkingStrategicallyAbout RelationshipsAbout Relationships


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ThinkingStrategically AboutThinkingStrategically AboutRelationshipsRelationships

IndustryBandwidthsIndustryBandwidths

CorrugatedBoxCorrugatedBox

IndustryIndustry

FiberandFiberand

Plastic DrumPlastic DrumIndustryIndustry

ProgrammableProgrammable

ControllerControllerIndustryIndustry

TransactionalTransactional

RelationshipsRelationships

CollaborativeCollaborative

RelationshipsRelationships


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III. DeliveringIII. Delivering

RelationshipRelationship--SpecificSpecificMarketOfferingsMarketOfferings


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Delivering RelationshipDelivering Relationship--SpecificSpecific

MarketOfferingsMarketOfferingsFlaringFlaring--OutStrategiesOutStrategies

CurrentIndustryBandwidthCurrentIndustryBandwidth

a ba b

FlaringFlaring--Out byOut by

UnbundlingUnbundling

c dc d

FlaringFlaring--OutwithOutwith

AugmentationAugmentation


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Unbundlingcandidates:Unbundlingcandidates:deliverydelivery

installationinstallationtrainingtraining

maintenancemaintenance

technicalservicetechnicalservice

Un

bundling

pricing

strategy

Un

bundling

pricing

strategy ---- for

each

for

each

serviceunbundled,thepriceislowered, butitisserviceunbundled,thepriceislowered, butitisloweredlessthanthecostofprovidingtheservice.loweredlessthanthecostofprovidingtheservice.

Delivering RelationshipDelivering Relationship--SpecificSpecificMarket OfferingsMarket Offerings

FlaringFlaring--Out by UnbundlingOut by Unbundling


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Bundlingcandidates:Bundlingcandidates:

coco--designdesign

jointsalescallsandpromotionsjointsalescallsandpromotions

sharedlogisticssystemssharedlogisticssystems

EDISystemsEDISystems

Bundlingpricing

strategyBundling

pricing

strategy ---- a

premium

price

a

premium

price

ischarged;however,thepricepaidislessthantheischarged;however,thepricepaidislessthanthesumofchargesforunbundledservices.sumofchargesforunbundledservices.

Delivering RelationshipDelivering Relationship--SpecificSpecific

Market OfferingsMarket OfferingsFlaringFlaring--Out with AugmentationOut with Augmentation


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IV. Pursuing GrowthandIV. Pursuing GrowthandContinuityContinuity


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Pursuing Growthand ContinuityPursuing Growthand ContinuityExpanding RelationshipExpanding Relationship--SpecificOfferingsSpecificOfferings

othersothers

codesigncodesignBreadthBreadth coordinatedproductioncoordinatedproduction

sharedITandlogisticssharedITandlogistics

jointqualityprogramsjointqualityprograms

coco--marketingmarketing

DepthDepth


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Pursuing Growthand ContinuityPursuing Growthand ContinuityManagingtheBehavioral AspectsManagingtheBehavioral Aspects

PromotehonestandopencommunicationsPromotehonestandopencommunications BuildtrustandcommitmentBuildtrustandcommitment

ImplementcoordinationmechanismsImplementcoordinationmechanisms

AnticipateandresolveconflictsAnticipateandresolveconflicts


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Pursuing Growthand ContinuityPursuing Growthand ContinuityCoordinationMechanismsCoordinationMechanisms

HiHi

RelativeRelative

DependenceDependence

LoLo

LoLo HiHi

Mutual DependenceMutual Dependence

TheTheMarketMarket

PowerPower

CooperationCooperation


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Pursuing Growthand ContinuityPursuing Growthand ContinuityEvaluate RelationshipOutcomesandEvaluate RelationshipOutcomesand

Reassign AccountsReassign Accounts

Motorolas Relationship Criteria:Motorolas Relationship Criteria:

allall programswill

result

in

profits

for

both

programs

will

result

in

profits

for

both

firmsfirms

Motorolasales/profitswill besignificantMotorolasales/profitswill besignificant

Motorolawillmaintainasignificant,ifMotorolawillmaintainasignificant,ifnotexclusive,shareofcustomer businessnotexclusive,shareofcustomer business

thepartnershipwillcontributetothepartnershipwillcontributetoMotorolasMotorolastechnologyroadmapstechnologyroadmaps


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Pursuing Growthand ContinuityPursuing Growthand ContinuityPeriodically Update the Value ProvidedPeriodically Update the Value Provided

Askeachcustomer:Askeachcustomer:

Whathavewenotdonelately?Whathavewenotdonelately?


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Pursuing Growthand ContinuityPursuing Growthand ContinuityP

eriodicallyU

pdate

theV

alueP

rovidedP

eriodicallyU

pdate

theV

alueP

rovided

DevelopaDevelopaCustomer Retention PlanCustomer Retention Plan::

estimateestimatecustomerequitycustomerequity

tracktrackcustomerretentioncustomerretention assesscausesofcustomerdefectionsassesscausesofcustomerdefections

analyzecomplaintandservicedataanalyzecomplaintandservicedata

establishproceduresforrespondingtocustomerestablishproceduresforrespondingtocustomer

defectionsdefections anticipatethereformulationofmarketofferingsanticipatethereformulationofmarketofferings


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V. CompetingThroughV. CompetingThroughBusiness NetworksBusiness Networks


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Competing ThroughCompeting ThroughBusiness NetworksBusiness Networks

Business NetworksBusiness Networks areclustersofareclustersofinterrelatedandcoordinatedinterrelatedandcoordinatedbusinessrelationships.businessrelationships.


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CompetingThroughCompetingThroughBusiness NetworksBusiness Networks

ThreeTypes

of

Business

NetworksThree

Types

of

Business

Networks

Vertical NetworksVertical Networks

Supplierand CustomerSupplierand Customer

Manufacturerand DistributorManufacturerand Distributor

Horizontal NetworksHorizontal Networks

CoopetitionCoopetition

CooperativesCooperatives

Industry AssociationsIndustry Associations

Diagonal NetworksDiagonal Networks

Firmsfrom ComplementaryIndustriesFirmsfrom ComplementaryIndustries


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The Power PC Business NetworkThe Power PC Business NetworkMotorolaMotorola

AppleApple IBMIBM

KaleidaKaleida

TaligentTaligent

SGSSGS--ThomsonThomson BullBull


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TheG

eneralMagic

Business

NetworkThe

General

Magic

Business

Network

AppleApple

Motorola SonyMotorola Sony

GeneralMagicGeneralMagic

PhilipsPhilips MatshushitaMatshushita

AT&TAT&T EOEO


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BuildingBusiness NetworksBuildingBusiness Networks

1. Craftanetworkvision1. Craftanetworkvision

2. Prospectfor,identify,andselect2. Prospectfor,identify,andselectpartnerfirmspartnerfirms

3. Gaincommitmenttonetworkvision3. Gaincommitmenttonetworkvision

4. Developaplanforteamwork4. Developaplanforteamwork

5. Implementandevaluate5. Implementandevaluate


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VI. ConclusionsVI. Conclusions


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ValueManagementValueManagementAsaManagementand ConsultingAsaManagementand ConsultingPracticePractice

ValueManagementValueManagement

Philosophy and ConceptsPhilosophy and Concepts

ValueManagementSystemValueManagementSystem

Processes and ActivitiesProcesses and Activities

ValueManagementMethods&ToolsValueManagementMethods&Tools

Techniques Developed Internally and ExternallyTechniques Developed Internally and Externally

Chapre 10 Customer Relationships

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Transcript of Chapre 10 Customer Relationships