Tuesday, August 10, 2004

Creating Customer Value

Much has been written about customer orientation, customer relationship management (CRM), Customer Lifetime Value (CLV) metrics, Customer Centric organization models, customer retention, customer care…add any high sounding word with ‘customer’ preceding or succeeding that word and you have a new model, a new theory. Headline hitting books, celebrity author seminars and training till another theory comes along.

And we see the poor customer is still the most dissatisfied lot (that includes all of us specialists too, as customers).

What a manufacturer or service provider often thinks as a market or value proposition, customers respond in a diametrically different fashion. Why does this happen?

While business thinks in terms of products and derived values, customer is looking at satisfaction. The key question is whether all the strategy, product features, add-ons and value creation lead to ultimate customer satisfaction.


Blogger Strategy on the Internet. said...

I believe the problem is not the many writings of these subjects, but the lack of implementation of the theoretical observations on the subjects. It is excellent to develop add-ons etc. as long as there exists a client demand off course, but many companies today develop "just for the sake of developing something new each year". Go back just a few years - to the burst of the Internet bubble - and see how far we had come in terms of business and marketing strategies. What happened? Everybody ran out onto this new market called the Internet and acted completely opposit of what all this newly aquired knowledge on the subjects of strategy and marketing had told us.. Businesses engaged in a gold rush for short term profits, exchanging the demands for good products and services with online marketing and the cutting of prices. The theory clearly showed us how harmfull a lack of focus in client needs could be, and indeed this turned out to be true. Many business today still ignore client demands for quality products and services, and hence the clients are left unsatisfied still.

Strategy on the Internet. An in depth analysis and a must read for every Internet entrepreneur and online business manager

5:44 PM  

Post a Comment

Business Strategy Forum