Escaping Commoditisation

Post on 15-Jan-2015

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Avoid the race to the bottom on price by moving from the customer's thinking from price to value. Transform your business by exiting Level 1 thinking and move the conversation to Level 2 and Level 3 of Perceived value. Lead with your core uniqueness, lead with your people and their passion, not your products.

Transcript of Escaping Commoditisation

www.flickr.com/photos/lobraumeister/3168287411

www.flickr.com/photos/theplanetdotcom/4879425518

“We are different”

www.flickr.com/photos/traftery/4773457853

“We are really different”

Commodity

A race to the bottom

www.flickr.com/photos/left-hand/2922904230

Race to the bottom

Race to the bottom

Race to the bottom

www.flickr.com/photos/carquestguy/4335716783

www.flickr.com/photos/roblee/348548738

Race to the bottom

Price vs Value

www.flickr.com/photos/josephrobertson/419101649

Being commoditised

www.flickr.com/photos/bronv/4412939449

12

View _Allen_'s map

Taken in Paris, Ile-de-France (See more photos or videos here)

48°51' 58" N, 2°19' 30" E48.8660452.32488

Escape the Red Ocean

13

Navigate to Blue Oceans

Creative thinking

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www.flickr.com/photos/fotoosvanrobin/2545857883

Transformational thinking

Managing the inevitable

www.flickr.com/photos/vek/4665924239

www.flickr.com/photos/winemegup/3641912321

Get it right

www.flickr.com/photos/roome/3390682853

Get it wrong

OK, but how?

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the CLOUD It is not about

Technology It is not about

It is not about

It is about

PROBLEMS Tomorrow’s

What is the problem

for which you are the

solution?

The 6M€ Question?

Running shoes

www.flickr.com/photos/evaxebra/5620076409

Feet solutions

www.flickr.com/photos/pmtorrone/4573661684

Technology and innovation

www.flickr.com/photos/rhinoneal/3907394091

Avoid Willy Wonka thinking

www.flickr.com/photos/uaba/2923459060

Think like a Rock Star

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Dominate your own category 3

Differentiate at Level 2 and Level 3 2

Competitive separation 1

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Competitor 2

Competitive Separation

YOU Competitor 1

Competitor 3

Competitive Set

Core

Goal: Use innovation and differentiation to break out of your traditional set of competitors

Unmatchable offer

* Question: Who is your Reference Competitor?

Reference Who is your

Competitor?

Example

Slideshare

Dominate your own category 3

Differentiate at Level 2 and Level 3 2

Competitive separation 1

Avoid looking in

the wrong places

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Perceived value

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It’s all about the target

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Basic Product/Service: • Technology • Price performance • Product quality

Enhanced Services: • People • Perceived value • High touch • Exceed customer expectations • Delight and astound customers

Basic Product/Service

Differentiation: 3 Levels of Perceived Value

Enhanced Services 3

1 Basic

Product/Service

Your Hosted

Services

Support Services: • Levels of support • Quality of service • Systems • Processes

2 Support Services

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Basic Product or

Service Support Enhanced Service

Focus Requirements/Specs Satisfaction Delight

Customer Concern

Does the product/service meet my needs/standards/ expectations?

Is the product/service convenient/efficient/easy to access or use?

How do they make me feel?

Key Elements Technology/Technical expertise

Systems, processes, policies, and structure

Leadership and Culture

Controlled by Technical specialists Management Front line performers

Abilities Needed Industry/Field/Trade/ Clinical Knowledge or Skills

Intellect and Reasoning (IQ)

Emotional Intelligence (EQ)

1 2 3

Differentiation: 3 Levels of Perceived Value*

*www.jimclemmer.com/blog/2011/04/12/the-three-rings-of-perceived-value-an-integrated-customer-focus

Differentiation = your

Inner Advantage

Example

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How are we difference?

Exercise

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Differentiation exercise

Are you remarkable?

"...but what really blew me away...” exercise

"I was pleased that we got what we paid for, that the service worked just like it was supposed to, that they honored their contract from start to finish, that the user experience was simple and powerful like they promised, that there have been no glitches, hick-ups, outages or crashes and that all our support issues have been resolved quickly and painlessly. But what really blew me away was ____________"

Dominate your own category 3

Differentiate at Level 2 and Level 3 2

Competitive separation 1

erent f

dif think

Commodity thinking

www.flickr.com/photos/rooreynolds/5848100806

One size fits all thinking

www.flickr.com/photos/marcwathieu/3963792473

Creative thinking

www.flickr.com/photos/vek/5543548284

Structured thinking

www.flickr.com/photos/juhansonin/3703735824

SalesChannel Europe ©2011 All rights reserved 53

Differentiation Mindset

Old Paradigm New Pardigm

Be rational Be passionate

Be cautious Lead, don’t follow

Aim to satisfy Aim to surprise

Be practical Be unreasonable

Innovate when necessary Innovate incessantly

Get it mostly right Sweat the details

Think like an engineer and feel like

an accountant

Think like an engineer and feel like

an artist

www.flickr.com/photos/maestropastelero/258000448

The Difference is YOU!

Examples

Dilemma of choice

Differentiation

Black socks

Pain vs Gain

What is the problem

for which you are the

solution?

The 6M€ Question?

Rackspace

are The DIFFERENCE

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Basic Product/Service: • Technology • Price performance • Product quality

Enhanced Services: • People • Perceived value • High touch • Exceed customer expectations • Delight and astound customers

Basic Product/Service

Support Services

Enhanced Services

Differentiation: 3 Levels of Perceived Value

1

2

3

Basic Product/Service

Your Hosted

Services

Support Services: • Levels of support • Quality of service • Systems • Processes

Dominate your own category 3

Differentiate at Level 2 and Level 3 2

Competitive separation 1

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“Genius is one percent inspiration and ninety-nine

percent perspiration.”

- Thomas A. Edison_

it Happen

it Happens

Success:

Think like a Rock Star

www.flickr.com/photos/feiticeira_org/4602640594

Disciplined effort and

resilient thinking

Victory feels like this

www.flickr.com/photos/rhinoneal/2573461339

www.flickr.com/photos/winemegup/3641912321

Get it right

www.flickr.com/photos/littlebabyjesus/123838009

Get it right

www.flickr.com/photos/horacio/3781750

David R Ednie President & CEO

SalesChannel Europe Ph: +33 676 60 09 25 (FR)

Email: david@saleschannel-europe.com Website: www.saleschannel-europe.com

Your Hosted

Services