2013-07 How to Win with Customers - Keith Pigues
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How to Win with Customers D. KEITH PIGUES
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In this engaging, challenging and thought-provoking session, D. Keith Pigues, co-author of Winning with Customers: A Playbook for B2B (Pigues and Alderman, Wiley & Sons 2010) will help participants: - Understand why a focus on your customers’ profitability is the key to your company’s growth and profitability, - Uncover the differential value customers receive from your company’s value proposition, - Identify the most valuable opportunities to improve your customers’ business and make more profits for your business in return, - Collect and utilize customer and competitive insight derived from the use of the Differential Value Proposition (DVP) to improve your organization’s decision-making, investments and results.
Transcript of 2013-07 How to Win with Customers - Keith Pigues
How to Win with Customers
D. KEITH PIGUES
WINNING WITH CUSTOMERS I D. Keith Pigues
Are Your Customers at the Center of Your Business?
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Customer Winning Check-‐up
• We know specifically how we help customers make more money
• We understand how we will make our customers more money in the future
• We measure and track how much money over /me customers make doing business with us
• We measure and track how much more money our customers make doing business with us rela/ve to our compe/tors
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True Measure of Winning
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• And, capture your fair share
How your customers… Make more money by doing business with you
• In today’s world, you must understand
WINNING WITH CUSTOMERS I D. Keith Pigues
• The challenge… • The lightning strike… • The enterprise…
The Journey to Win with Customers
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Change the Customer ConversaWon
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What MaYers to Customers?
• Quality and Reliability? • ReputaWon? • RelaWonships? • Product? • Technical Capability? • Product Features? • Financial Stability? • Long Term Players?
• Increased Performance • Earnings • Growth • Return on Investment • Shareholder value • Drive Revenue • Control Costs • Improve Cash Flow • Build Shareholder Value
Their Bo>om Line
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TradiWonal Management Winning With Customers
Inside Out How much profit do we make
from our customers?
Outside In Do our customers perform be>er because they do business with us?
There Is More Than One Point of View
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Help Your Customers Make More $$$
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Differen/al Value Proposi/on
Supply Chain
Product Line
Brand Name
Sales Organiza/on
Marke/ng Campaigns
What is Your DifferenWal Value?
DVP
Your Customers’ Financials
Your Value ProposiWon
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DVP™ = Money Your Customer Makes with You vs. Other Alternatives
Amount of Business You Do Together
DVP™ = $400,000
$10,000,000 = 4%
Measuring DifferenWal Value
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DVP%
Diffe
renW
al AYrib
utes
Hypothesis What we think
Ease of Install
Customer Service
Reliability
6%
Current Customer view
of today
Reliability
Customer Service
Ease of Install
Safety
4%
Opportunity Incremental improvements iden9fied
Customer Service
Safety
3%
Goal Achievable 18–24 months from now
Reliability
Customer Service
Ease of Install
Safety
7%
Measuring and Improving DVP™
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6%
4%
2%
0%
-‐2%
DVP%
Scale
DVP is real money, not a sa/sfac/on or loyalty score
Customer relies on you to run their business profitably – Indispensible
Customer considers relaWonship healthy – Partnership and Growth
Customer does not consider you significant to the business – No Growth
Customer is losing money doing business with you – At Risk
Customer considers your offering a commodity – No Impact
What a DVP™ ‘Feels Like’
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DVP Varies by Industry and Business
200%
50%
10%
0%
-2%
DV
P
• DVP is not compared by business • DVP varies by business type, product maturity and geography
1% A
4% B 4% C
7% D
25% -‐ 30% E
200% F
WINNING WITH CUSTOMERS I D. Keith Pigues
THE LIST: Top 5 things to make our customers more $$$
Investment Opportunity Impact on Customer
Product DifferenWaWon
Upgrade exisWng low-‐end products to provide an offering for price-‐sensiWve buyers. $3,082,000
Product Line Fill gap in Product Line by offering High End OpWon that provides a natural up-‐sell to mainstream products. $1,843,000
Loyalty Programs
Simplify the paperwork required to parWcipate in Loyalty Program. $1,645,000
Sales OrganizaWon
Increase focus down channel to drive demand with our customer’s customers. $2,071,000
MarkeWng Materials
Upgraded materials required to help close the sale with our customer’s customers. The materials need to be simplified and widely available in all branches.
$5,401,000
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Co-‐CreaWon = Winning SoluWons Win -‐ Win
WINNING WITH CUSTOMERS I D. Keith Pigues
Correlate DVP to Financial Outcomes 2007 GM% vs DVP%
10
20
30
40
50
60
70
0 -‐1 -‐2 -‐3 -‐4 1 2 3 4 5 6 7 8
Bathaus Westlake Inspired Interiors
Rhinomart
Ferguson
WM F. Meyer Banner Supply
DVP%
ID your higher value
customers
ID your lower value
customers
GM%
Measuring Return on Spending
WINNING WITH CUSTOMERS I D. Keith Pigues
Linking DVP to Your Company’s Profit
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AT RISK PARTNER
TRANSACTIONAL OPPORTUNITY
WINNING WITH CUSTOMERS I D. Keith Pigues
Winning with Customers
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Customers Company More Profits Growth + Profits
WINNING WITH CUSTOMERS I D. Keith Pigues
Q&A
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www.dkeithpigues.com
www.linkedin.com/in/dkeithpigues
@dkeithpigues
713-‐248-‐1539
WINNING WITH CUSTOMERS I D. Keith Pigues
