USING SERVICE TO LEVERAGE COMPETITIVE ADVANTAGE

Professor Colin Gilligan Khartoum, 27th September ,2011

MANAGING THE CUSTOMER EXPERIENCE BY LEARNING FROM THE SERVICE LEADERS

Marketing excellence is achieved not through ignorance and guesswork, but through a really detailed understanding of your market and a compelling value proposition.

THE WORLD IS CHANGING

 We live in a world characterised by a surplus of similar organisations, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar products and services, with similar prices and similar quality.

EVERYTHINGS THE SAME THESE DAYS

So what makes you interesting, exciting, different and relevant to my life? OR: In a crowded & competitive market, why should I choose you rather than one of your competitors?

TODAYS MARKETING REALITY

The emergence of: A new type of consumer with ever-higher demands The new competition & over-capacity New media New technologies Maverick factors (ever-higher commodity prices, social & political unrest)

And new rules of the game

 In most markets today it is about demonstrating relevance & customer value

SO WHAT ABOUT THE FUTURE?

What do we really think will happen tomorrow?

THE NEW MARKETING ENVIRONMENT & THE NEW CONSUMER

THE MORE DEMANDING, MORE DISCRIMINATING, BRAND AWARE, EXPERIENCE-SEEKING, TIMEPRESSURED, CYNICALLY-MINDED, GREEN-FOCUSED, DISLOYAL CONSUMER

THE CHANGING PRESSURES OF MARKETING

THE DIMENSIONS OF MARKETING STRATEGY

What are the bases of our competitive advantage?

Which markets do we want to operate in?

Which products & services are we going to offer?

BUT THE TRADITIONAL BASES OF COMPETITIVE ADVANTAGE ARE BEING ERODED

COMPETITIVE ADVANTAGE?

Genuinely better products? I dont think so Lower prices? The road to ruin Legal advantages & patents? Well how much are you willing to spend in defending these?

COMPETITIVE ADVANTAGE

Instead, the focus today is upon the softer factors such as: The brand; Innovation & thinking & behaving differently; Speed; AND Customer service and the customer experience

SO, IS SERVICE & THE CUSTOMER EXPERIENCE REALLY IMPORTANT TO YOU? EVERYONE TELLS ME THAT SERVICE IS IMPORTANT, BUT.

THINK ABOUT YOUR SERVICE STRATEGY & TELL ME ABOUT THE THREE SERVICE INNOVATIONS YOU HAVE INTRODUCED OVER THE PAST TWELVE MONTHS

AND THEN TELL ME WHAT YOU HAVE PLANNED FOR THE NEXT TWELVE MONTHS

TELL ME ALSO WHAT CUSTOMERS THINK ABOUT YOUR SERVICE & HOW THIS IS DRIVING YOUR THINKING

CONDUCT THE SERVICE AUDIT & IDENTIFY THE BOTTLENECKS & OBSTACLES (AND THEN DO SOMETHING ABOUT THEM)

WALK THE CUSTOMER JOURNEY

Point of First Contact

Point of Last Contact

Where & What are the OTMUs?

DELIVERING GREATER VALUE

So, think about what value means to each of your target groups and then identify: The value creators The value destroyers

IF SERVICE IS SO IMPORTANT, WHICH ORGANISATIONS DO YOU ADMIRE AND WHAT ARE YOU DOING ABOUT LEARNING FROM THEM?

MY SERVICE HEROES
For technology and service excellence

The customer relationship management champions

For database management

BUT WHAT DO WE MEAN BY SERVICE & WHY IS IT STRATEGICALLY IMPORTANT?

SOME FACTS & FIGURES

The cost of acquiring a new customer can be 5X greater than the cost of keeping a current one Reducing customer defections can boost profits from between 25-150% The ROI from marketing to existing customers can be up to 7X more than for prospective customers Used properly, happy customers are the best promoters of the company & its brand

BUT WHAT DOES SERVICE LOOK LIKE IN YOUR MARKET? IS IT SPEED, IS IT PERSONALISATION, IS IT VALUE FOR MONEY, OR IS ITJUST LOW PRICES?

SERVICE SPEED, THE SEARCH FOR VALUE & THE GROWTH OF CURATED CONSUMPTION

THE SERVICE VALUE PROPOSITION

RETHINK THE VALUE PROPOSITION

The Selling Proposition

The Unique Selling Proposition

The Extra Value Proposition

SERVICE & INNOVATION

SERVICE THROUGH ONLINE MARKETING

THE FUNDAMENTAL IMPORTANCE OF PEOPLE (MY THEORY OF SERVICE STAFF)

BUT SERVICE COSTS MONEY.. SO WHAT IS YOUR SERVICE BUDGET?

MANAGING THE CUSTOMER EXPERIENCE

THE CUSTOMER EXPERIENCE: THE COMPELLING TRUTH

Dont expect customer engagement if you have an indistinct brand personality and fail to demonstrate your (continuing) relevance to me. So, give me reasons to believe. Excite, enthuse and delight me. Be part of my life.

DELIVER OR DIE!!!!!

OVER-PROMISE & UNDER-DELIVERY

FINAL THOUGHTS & QUESTIONS

SOME QUESTIONS FOR YOU

What would customers say about your service? Do you even know? What levels of service do your customers want? How much are they willing to pay for (higher) service levels? Do you actually have a service strategy? What is the budget? Who has responsibility for it in top management? What levels of service do your competitors offer? What service benchmarking have you done?

SIX LESSONS ABOUT SERVICE

Take customer & service seriously Lead from the top. If you cant do it. Build service into the process from the outset. It isnt an add on & it isnt an option Invest in it & think differently Select your staff carefully, train them & then retrain them Use service to gain an advantage

THANK YOU FOR YOUR ATTENTION