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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

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

EVERYTHING’S 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? .

social & political unrest) • And new rules of the game .TODAY’S 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.

• 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 .

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

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 don’t 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. AND  Customer service and the customer experience .  Innovation & thinking & behaving differently.  Speed.

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

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 .

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

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? .

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

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) .

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

MANAGING THE CUSTOMER EXPERIENCE .

enthuse and delight me. . So. Excite.THE CUSTOMER EXPERIENCE: THE COMPELLING TRUTH Don’t expect customer engagement if you have an indistinct brand personality and fail to demonstrate your (continuing) relevance to me. give me reasons to believe. Be part of my life.

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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? .

 Build service into the process from the outset. It isn’t an add on & it isn’t an option  Invest in it & think differently  Select your staff carefully. If you can’t do it…. train them & then retrain them  Use service to gain an advantage .SIX LESSONS ABOUT SERVICE  Take customer & service seriously  Lead from the top.

THANK YOU FOR YOUR ATTENTION .