Building Integrated Customer Value Management Strategies · Customer Value Management A C E R...

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Building Integrated Customer

Value Management Strategies

Progress Partners - Introduction Pack

Kevin Decker

Managing Partner

Progress Partners - Insights, Strategy, Solutions

Discussion Agenda

Progress Partners Introduction & Core Consulting Team

Progress Partners Customer Value Management (CVM) Approach

Examples of Customer Value Management Framework Application

Summary of Benefits using the Progress Partners CVM Approach

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Progress Partners – Business Services Introduction

Progress Partners is a Business Strategy, Strategic Marketing and New Business Development Consultancy. We specialise in delivering solutions across 4 primary areas;

1. CUSTOMER STRATEGY DEVELOPMENT

Strategic Insights, Market & Customer Segment expertise & Customer Value Management Strategy Development.

2. BUSINESS MODEL DESIGN & DEVELOPMENT

Multi-Sector expertise in Business Model Design & Development to maximisebusiness, financial and customer outcomes.

3. VALUE PROPOSITION DEVELOPMENT

New Product, Channel & Service Value Proposition development experience across multiple markets, sectors and product types.

4. MARKETING & COMMUNICATIONS STRATEGY

Extensive Brand Design & Development, Positioning and Marketing expertise to maximise impact and effectiveness.

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Progress Partners - Core Consulting Team

Kevin Decker - Managing Partner (Customer Strategy & Business Model Development)

Kevin is a highly qualified Business Strategy, Marketing and New Business Developmentprofessional. A business professional with cross-industry experience in Property, FinancialServices and FMCG. Over 20 years of senior management experience across a range ofstrategic, functional and general management roles in 5 top tier organisations. Kevin hasa proven capability in designing, developing and implementing new business, product andchannel propositions into multiple segments and markets.

Mike Crisp - Analytics Partner (Customer Insights & Database Analytics)

Mike is highly experienced in marketing information development , business intelligence andadvanced customers analytics. For the past 25 years Mike has principally worked in thebanking and financial services industries. For the past 6 years he has had very extensivecomplex analytics experience in the Corporate, SME and Retail banking sectors in Asia.

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The CVM Framework is used to develop overall Segmentation Models & Specific Focused

Segment objectives, strategies and action plans for purpose of:

Acquiring the most profitable and highest growth customers,

Developing appropriate Customer Management models to manage customers profitably,

Expanding share of wallet and Retaining the most valuable customers.

EXTERNAL INTERNALCVM

Attitudinal/ Needs

Dem

og

rap

hic Behavioural

Dem

og

/Valu

e

Strategic

Market

Management

Customer

Relationship

ManagementCustomer Value Management

A C E R

ExpansionCustomer Management RetentionAcquisition

CVM Framework – The CVM Framework helps to develop the right

type of Customer Strategy approach for the right purpose


Customer Value Management

A C E R


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CVM Framework Outputs – CVM Framework is used initially to

develop the overall Market and Customer Segmentation Models

Core Segmentation Model CRM SegmentationMarket Segmentation RM Model

1

2

4

3

YS MC FM EN<25% 50% >75%

Strategic

Market

Management

Customer

Relationship

Management



Core Segmentation Model

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CVM Strategy Focus – The CVM Framework helps develop overall

Customer Strategy direction and alignment to business priorities

CRM SegmentationMarket Segmentation RM Model

1

2

4

3

YS MC FM EN<25% 50% >75%

The Segmentation Model & Operational CVM Architecture will provide good alignment &

customer centric marketing & sales direction to Core Business Strategic Priorities

Market

Share

Growth

Increased

Cross-Sell

Increased

Retention

Employee Engagement & Customer Engagement Platforms

Cost

Management

A C E R


Segment Behavioural

Analysis & CRM Plans

Sub-Segmentation

Segment Focus

ChannelsSegment

RM Model

Segment VP

Positioning

Product

Channel

Expansion Retention

Segment

Offering

+

+

+

Focus

Portfolio

Strategies

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Customer Architecture – The CVM Architecture also helps prioritise

implementation and develop focus portfolio strategies


1

2

4

3

YS MC FM EN<25% 50% >75%

A C E RExpansionCustomer

ManagementRetentionAcquisition

Progress Partners - Insights, Strategy, Solutions9

CRM / Behavioural & Trigger

Based Programs On-boarding & Ongoing Sales

& Service Processes

Upfront Product Packaging &

Natural Fit Bundles

Building Effective Cross-Sell Capability

A C E R


1

2

4

3

YS MC FM EN<25% 50% >75%

Cross Sell Program Capability – The CVM Framework also helps us

structure and develop Integrated Cross-Sell Programs…


Progress Partners - Insights, Strategy, Solutions10

Customer Risk Management – The CVM Framework also helps to

define and direct the Customer Risk Management Models…

Exclusion

Rules

Over-ride

Rules

•Over-ride

rules to

switch off

certain credit

requirements

•Exclusion

rules to

over-ride

certain

credit

exclusions

Product Risk

Scorecards

Scorecard Over-

Ride Rules

Customer Risk Rating

(CRR) Model

Customer Potential

Rating

+9+8+7.0.

-7-8-9

CRR BRR PRR DRR

=

+3+2+10-1-2-3

+3+2+10-1-2-3

+3+2+10-1-2-3

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Risk

Segmentation

Model

Customers Potential Value (Low SOW)

High Medium Low

Custo

mers

Curren

t Value

High

Value

(Premium)

First

priority(move to higher

SOW value)

Second


SOW value)

Maintain

Medium

Value

(Middle)

First


SOW value)

Second


SOW value)

Maintain

Low Value

(Mass)

Third

priority(move to

medium value)

Maintain Not applicable

Very Low

Value (Sub-mass)

Ignore Not applicable Not applicable


1

2

4

3

YS MC FM EN<25% 50% >75%


Our CVM Framework (ACER Model) provides us with a practical and logical framework to

plan and implement effective Customer Value Growth Programs to achieve the following:

To acquire the most profitable and highest growth customers

To develop appropriate customer relationship models to manage customers profitably

To expand share of wallet and increase profitability

To retain most valuable customers ensuring sustainable profitability

EXTERNAL INTERNALCVM

A C E R

Attitudinal/ Needs

Dem

og

rap

hic Behavioural

Dem

og

/Valu

e

Strategic

Market

Management

Customer

Relationship

Management



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In Summary – Our integrated and structured approach to Customer

Value Management will help effectively grow customer value

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Insights, Strategy, Solutions

Kevin Decker

Managing Partner

www.progresspartners.com.au

[email protected]

+61 422 377 318

Building Integrated Customer Value Management Strategies · Customer Value Management A C E R...

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