Pratt – Summit Group

Report
Creating Higher Customer
Value Across Agencies
Business Council for International Understanding
Interagency Trade Officer Course
The Summit Group
2012 © The Summit Group
www.summitvalue.com
“… to gain knowledge accumulate;
to gain wisdom, eliminate.”
- Chinese Proverb
2012 © The Summit Group
www.summitvalue.com
Lessons from the Private Sector
Value
Thought
Creation
Framework
Value
Statements
Customer
Business
Compass
The Summit
Group Value
Principles
Total Value
Creating
Third Box
ThinkingTM
Business
Issues &
Initiatives
Worksheet
2012 © The Summit Group
www.summitvalue.com
Navigating Customer/Client Interactions
2012 © The Summit Group
www.summitvalue.com
Observable
5-10%
Dangerous
95-90%
2012 © The Summit Group
www.summitvalue.com
Understanding the Client
The problem defined is the problem solved
The opportunity found is the opportunity leveraged
2012 © The Summit Group
www.summitvalue.com
What is Value?
Value = Benefits - Costs
Benefits
Benefits
•
Tangible
• Measurable
Costs
•
Economic
• Measurable
•
•
•
•
•
•
•
Perceived
Customer Defined
• Business
• Personal
Political Capital
Learning Curve
Switching Costs
Opportunity Costs
Aggravation/Frustration
Cost
2012 © The Summit Group
www.summitvalue.com
Keys to Value Creation
1. Knowing Your Customer’s Business
•
2.
3.
Understand what value the client is trying to create for their own
customers, and for themselves
Knowing Your Agency’s Capabilities
•
Understand what value you can provide for both the client and
THEIR customers
•
Understand the “so what” of the value you provide
Knowing Other Agencies’ Capabilities
•
Understand what value other agencies can provide that you cannot
2012 © The Summit Group
www.summitvalue.com
The Summit Group
Global Research
How clients want to be served?
2012 © The Summit Group
www.summitvalue.com
How Clients Want to Be Served
Organization-facing skills
Client-facing skills
•
•
•
•
•
•
•
•
Leverage all of your assets
Manage multi-level relationships
Manage “virtual teams”
Manage execution
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 Group
www.summitvalue.com
Summit Group Tools for Knowing Your Customer
and Creating Value
2012 © The Summit Group
www.summitvalue.com
Value Creation Thought Framework
• What do they care about?
• What are their critical business
issues?
THEM
• What will be important to them?
• What value do they rely on to
win?
• What do you have?
US
• How does what you have
impact what they care about?
FIT
• How do you communicate this?
• Prove it!!!
2012 © The Summit Group
PROOF
www.summitvalue.com
Value
Framework
Value Thought
CreationCreation
Thought
Framework
THEM
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?
2012 © The Summit Group
US
What do you
have to offer?
FIT
How does what
you have impact
what they care
about?
PROOF
How do you
articulate this?
Prove it !!!
www.summitvalue.com
Customer Business Compass
Market / Brand Initiatives
• What the customer’s 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?
Competitive Initiatives
Strategic Initiatives
• Who are the competitors, and their strategic
direction in the market where the customer is
and where the customer wants to be?
• 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 customer’s capabilities/state of
readiness to win in its desired marketplace?
• What are the steps to getting there?
• What are the marketplace requirements?
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?
2012 © The Summit Group
www.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?
THEM
2012 © The Summit Group
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.
www.summitvalue.com
Exercise One
15 minutes for discussion
USG Agency
Client
Contacted
(name and brief
description)
What Do They Client Issue(s)
Care About?
(plus urgency
(compass focus)
rating)
Urgency rating: 1-5, 1=not urgent, 5=extremely urgent
2012 © The Summit Group
www.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 Group
www.summitvalue.com
Third Box Thinking™
Your Agency
The Client
Your Client’s
Customer
What do you
have that is
relevant?
What does the
client care about?
What does your
client’s customer
care about?
Bring?
Care About?
Seek?
Value
Proposition
Value Creation
2012 © The Summit Group
www.summitvalue.com
Client Issues
Your Agency
The Client
•
•
•
•
•
•
2012 © The Summit Group
Their
Customers
Competition
Suppliers
Substitutes
Industry / Geographic /
Political Barriers
Customers
How do we create the
Superior Customer
Experience?
• Raving fans
• Loyalty
• Differentiation
• Premium pricing
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Third Box ThinkingTM
CNN-Delta Air Lines
YOU
2012 © The Summit Group
CUSTOMER
CUSTOMER’S
CUSTOMER
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
What do they care
about?
2012 © The Summit Group
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
2012 © The Summit Group
CUSTOMER
CUSTOMER’S
CUSTOMER
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
What do you have
that is relevant?
What do they want
for themselves?
What do they care
about?
2012 © The Summit Group
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
What do you have
that is relevant?
What do they want
for themselves?
What do they care
about?
2012 © The Summit Group
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
What do you have
that is relevant?
What do they want
for themselves?
What do they care
about?
2012 © The Summit Group
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
Media Buyer
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
Media Buyer
$50K/spot
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
Media Buyer
$50K/spot
$49K/spot
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
Media Buyer
$50K/spot
$49K/spot
$48K/spot
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
CUSTOMER’S
CUSTOMER
$6M
TV
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
$6M
TV
CUSTOMER’S
CUSTOMER
Business
Campaign
What do you have
that is relevant?
2012 © The Summit Group
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
$6M
TV
What do you have
that is relevant?
2012 © The Summit Group
CUSTOMER’S
CUSTOMER
Business
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER
$6M
TV
What do you have
that is relevant?
2012 © The Summit Group
CUSTOMER’S
CUSTOMER
Business
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
What do you have
that is relevant?
Business
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
What do you have
that is relevant?
Business
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
•
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
What do you have
that is relevant?
Business
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
•
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
What do you have
that is relevant?
•
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
Reduce balance FF Points
•
•
Business
Reduce financial liability
Strengthen brand loyalty with high
volume business travelers
• Differentiate FF Program
• Better leverage partner relationships Disney
•
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
•
•
•
•
•
•
•
•
•
•
•
What do you have
that is relevant?
Programming / Price
Braves
Hawks
WTBS
CNN-X
TNT
TCM
MGM Movies
HB Cartoons
Cartoon Network
Video Production Facilities
•
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
Reduce balance FF Points
•
•
Business
Reduce financial liability
Strengthen brand loyalty with high
volume business travelers
• Differentiate FF Program
• Better leverage partner relationships Disney
•
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
•
•
•
•
•
•
•
•
•
•
•
What do you have
that is relevant?
Programming / Price
Braves
Hawks
WTBS
CNN-X
TNT
TCM
MGM Movies
HB Cartoons
Cartoon Network
Video Production Facilities
•
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
Reduce balance FF Points
•
•
Business
Reduce financial liability
Strengthen brand loyalty with high
volume business travelers
• Differentiate FF Program
• Better leverage partner relationships Disney
•
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box ThinkingTM
CNN-Delta Air Lines
$50K/spot
$49K/spot
$48K/spot
$47K/spot
Media Buyer
- Price
- Viewership / Reach
- Programs
YOU
CUSTOMER’S
CUSTOMER
CUSTOMER
$6M
TV
•
•
•
•
•
•
•
•
•
•
•
What do you have
that is relevant?
Programming / Price
Braves
Hawks
WTBS
CNN-X
TNT
TCM
MGM Movies
HB Cartoons
Cartoon Network
Video Production Facilities
•
Campaign
Leisure
What do they want
for themselves?
What do they care
about?
Reduce balance FF Points
•
•
Business
Reduce financial liability
Strengthen brand loyalty with high
volume business travelers
• Differentiate FF Program
• Better leverage partner relationships Disney
•
•
•
•
•
•
•
•
•
•
•
•
2012 © The Summit Group
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
www.summitvalue.com
Third Box Thinking™ Exercise Two – Part One
Your Agency
The Client
Their
Customers
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. Don’t complete the “Agency Box”
2012 © The Summit Group
www.summitvalue.com
Exercise Two
15 minutes for discussion
USG Agency
Client
2
What do they
want in terms of
serving THEIR
customers?
2012 © The Summit Group
Client’s
Customers
1
What do they
need / want / care
about?
www.summitvalue.com
ValueTotal
Thought
Creation Framework
The
Value-Based
Offer
Internal Sources
•
•
•
Company–Wide
Organization
Strengths
Cross–Functional
Solutions
2012 © The Summit Group
Your Standard
Products &
Services
External Sources
•
•
•
Other Suppliers
Partnerships
Strategic Alliances
www.summitvalue.com
Value
Framework
Value Thought
CreationCreation
Enablers
Key Customer
Value Drivers
Your Total Value
Capability
• Products
• Services
• Offer Enablers
• Agency Strengths
• Agency Assets
• Partnerships/Relationships
2012 © The Summit Group
www.summitvalue.com
Potential Sources of Value Beyond the Service
•
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.
2012 © The Summit Group
www.summitvalue.com
Exercise Two – Part Two: Complete Agency Box
USG Agency
Client
2
What do they
want in terms of
serving THEIR
customers?
2012 © The Summit Group
Client’s
Customers
1
What do they
need / want / care
about?
www.summitvalue.com
Third Box Thinking™ Exercise Two – Part Two
Your Agency
The Client
Their
Customers
Complete the “Agency Box” with your
Offer Enablers
2012 © The Summit Group
www.summitvalue.com
Value Thought
CreationCreation
Thought
Framework
Value
Framework
THEM
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?
2012 © The Summit Group
US
What do you have
to offer?
FIT
How does what
you have impact
what they care
about?
PROOF
How do you
articulate this?
Prove it !!!
www.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 Group
www.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 Group
www.summitvalue.com
Components of a Value Statement
THEM
Our
understanding
of their
business
issues/needs/
concerns
US
What we do
and how we
operate
FIT
PROOF
How we think How we’ve done
what we do can
it for others
make a
difference for
them
Compelling articulation of the Value Statement is
essential for client “buy-in” and business dialogue
2012 © The Summit Group
www.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 Group
www.summitvalue.com
Articulating the Value Statement:
The Relevance Test
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?
2.
What do you have? Include
potential Offer Enablers from
inter-agency cooperation.
Impact
(1-3 Words)
CREATING THE VALUE STATEMENT (Putting it together)
Provide Examples:
Whom have you done this for before?
2012 © The Summit Group
What were the results?
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Value Statement Exercise Four
1. Same small teams/ same clients
2. Build the components of a Value Statement
2012 © The Summit Group
www.summitvalue.com
Understanding the Client
The problem defined is the problem solved
The opportunity found is the opportunity leveraged
2012 © The Summit Group
www.summitvalue.com
Understanding the Client
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?
2012 © The Summit Group
www.summitvalue.com
Summit Group Tools for Knowing Your Customer
and Creating Value
2012 © The Summit Group
www.summitvalue.com
Creating Business Value
Remember:
“Why Them? Why Us? Why Now?”
2012 © The Summit Group
www.summitvalue.com

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