Customer experience programs in b2b - Analysegruppen whitepaper 2014
5 Things A Company Must Do Summary Version
1. The MANDATE for Customer Focus in Challenging Economic Times Nedra Sadorf Hunter Business Group, LLC Hunter Business Group, LLC 4650 North Port Washington Road Milwaukee, WI 53212 414-203-8060 www.hunterbusiness.com
2. The Customer Imperative: Consequences of “Failure to Act” amount of new sales required just to maintain a 5% YoY gain Last Year Market Contraction (20%) Lost Customers (80% retention) $100M $20M $20M New Sales $45M This Year $105M
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4. Service Trumps Price Price will always be important in a customer’s purchase decision, but “outstanding service” is the number one reason customers do business with a company. Source: Harris Interactive, Customer Experience Report, March 2006
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6. Is Customer Focus Worth It? 6% 14% 31% 50% 2% % increase needed in customer retention to have same profit impact as cutting costs by 10% Increase in new product penetration from loyal customers Additional share of wallet granted by loyal customers Additional likelihood that a loyal customer will re-purchase or renew, compared to average customer Additional operating margin achieved by industry leads, strictly by having a better understanding of the customer Expected Results Desired Outcome
16. Conceptual Design: Vertical Market Alignment Group and serve customers who have similar needs into vertical “segments”. Within the segments, provide appropriate level of sales coverage based on expected value of each tier of customer. Strategic Account Managers Field Outbound Phone Outbound Phone Inbound Phone Financial Telecom Public Sector Product Services Key Accounts Tier 1 Proactive Accounts Tier 2 Maintenance Accounts
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Editor's Notes
Industry leaders derive up to 6% additional operating margin strictly by having a better understanding of the customer; Loyal customers are 14% more likely to re-purchase or renew a contract than the average customer at a supplier organization; Loyal customers are likely to give their suppliers a 31% greater share of wallet; Loyal customers reward their suppliers with a 50% increase in new product penetration; A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
