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What Are The Challenges To Building Customer Propositions?
Last week we delved into ‘brand & channel strategy’. Refer to blog http://www.superiorsales.com.au/aligning-brand-channel-strategy/ A key output to this is the Customer Proposition.
Following from channel strategy we now articulate our offer to customers or sub channels. The success of our business is closely connected to the success of our customers, therefore, if we want to win, we have to help our customers win. But we can only help them succeed if we deeply understand and deliver on their business needs. The first step of Channel Strategy encourages us to understand our customer’s strategic priorities and their market context. It is critical to revisit these as we develop the Customer Proposition to ensure we include elements that address specific customer needs.
Appreciating customer needs helps us better understand how and where we can create value for our customers. Customer relationships are developed based on a number of different interactions with your business and value can be created in many ways. There are four key ways we can create value with our customers – our challenge is to determine which of these are the right ones. The ones that create value for both the customer given its business needs and for us.
Not all customers are created equal. Some customer formats (such as different store formats for Key Accounts or sub-channels in fragmented trade) create more or less value for our business. Therefore, we may not want to offer everyone in particular customer group the exact same elements of the Customer Proposition, especially if certain elements are expensive to execute.
Driving profitable revenue means being selective about who gets what and why. It also means clearly understanding what we get in return. Looking at how these two things interact – what we offer and what we get in return, we can develop variations on our Customer Proposition to ensure we “give” high value elements of the offer only when we ‘get’ high value in return.
The Customer Proposition output captures everything we offer to a particular customer. It also summarises our financial goals, the supporting insights and the overarching commercial challenge.
We should be able to test each of the four elements to see how they are mutually enforcing. For example, we may have a discount strategy in the trade terms that is conditional on customers complying with our shopper initiatives. Senior leaders can test the strength of the Proposition by asking the trade teams why each and every element included on the Customer Proposition is there and how it creates value for both the Customer and us.
At Superior Sales we build programmes leveraging all the core drivers of capability – organisation, people, process and culture, not just skills. Refer to our white paper at http://www.superiorsales.com.au/storytelling/whitepaper/
At Superior Sales our capability experts work extensively with companies to equip sales teams, and indeed the whole organisation, to deliver a better customer experience. Please get in touch at http://www.superiorsales.com.au/contact-us/
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