Building Integrated Customer Value Management Strategies · Customer Value Management A C E R...
Transcript of Building Integrated Customer Value Management Strategies · Customer Value Management A C E R...
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Building Integrated Customer
Value Management Strategies
Progress Partners - Introduction Pack
Kevin Decker
Managing Partner
Progress Partners - Insights, Strategy, Solutions
Discussion Agenda
Progress Partners Introduction & Core Consulting Team
Progress Partners Customer Value Management (CVM) Approach
Examples of Customer Value Management Framework Application
Summary of Benefits using the Progress Partners CVM Approach
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Progress Partners - Insights, Strategy, Solutions
Progress Partners – Business Services Introduction
Progress Partners is a Business Strategy, Strategic Marketing and New Business Development Consultancy. We specialise in delivering solutions across 4 primary areas;
1. CUSTOMER STRATEGY DEVELOPMENT
Strategic Insights, Market & Customer Segment expertise & Customer Value Management Strategy Development.
2. BUSINESS MODEL DESIGN & DEVELOPMENT
Multi-Sector expertise in Business Model Design & Development to maximisebusiness, financial and customer outcomes.
3. VALUE PROPOSITION DEVELOPMENT
New Product, Channel & Service Value Proposition development experience across multiple markets, sectors and product types.
4. MARKETING & COMMUNICATIONS STRATEGY
Extensive Brand Design & Development, Positioning and Marketing expertise to maximise impact and effectiveness.
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Progress Partners - Insights, Strategy, Solutions
Progress Partners - Core Consulting Team
Kevin Decker - Managing Partner (Customer Strategy & Business Model Development)
Kevin is a highly qualified Business Strategy, Marketing and New Business Developmentprofessional. A business professional with cross-industry experience in Property, FinancialServices and FMCG. Over 20 years of senior management experience across a range ofstrategic, functional and general management roles in 5 top tier organisations. Kevin hasa proven capability in designing, developing and implementing new business, product andchannel propositions into multiple segments and markets.
Mike Crisp - Analytics Partner (Customer Insights & Database Analytics)
Mike is highly experienced in marketing information development , business intelligence andadvanced customers analytics. For the past 25 years Mike has principally worked in thebanking and financial services industries. For the past 6 years he has had very extensivecomplex analytics experience in the Corporate, SME and Retail banking sectors in Asia.
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Progress Partners - Insights, Strategy, Solutions
The CVM Framework is used to develop overall Segmentation Models & Specific Focused
Segment objectives, strategies and action plans for purpose of:
Acquiring the most profitable and highest growth customers,
Developing appropriate Customer Management models to manage customers profitably,
Expanding share of wallet and Retaining the most valuable customers.
EXTERNAL INTERNALCVM
Attitudinal/ Needs
Dem
og
rap
hic Behavioural
Dem
og
/Valu
e
Strategic
Market
Management
Customer
Relationship
ManagementCustomer Value Management
A C E R
ExpansionCustomer Management RetentionAcquisition
CVM Framework – The CVM Framework helps to develop the right
type of Customer Strategy approach for the right purpose
Progress Partners - Insights, Strategy, Solutions
Customer Value Management
A C E R
ExpansionCustomer Management RetentionAcquisition
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CVM Framework Outputs – CVM Framework is used initially to
develop the overall Market and Customer Segmentation Models
Core Segmentation Model CRM SegmentationMarket Segmentation RM Model
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2
4
3
YS MC FM EN<25% 50% >75%
Strategic
Market
Management
Customer
Relationship
Management
Customer Value Management
Progress Partners - Insights, Strategy, Solutions
Core Segmentation Model
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CVM Strategy Focus – The CVM Framework helps develop overall
Customer Strategy direction and alignment to business priorities
CRM SegmentationMarket Segmentation RM Model
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2
4
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YS MC FM EN<25% 50% >75%
The Segmentation Model & Operational CVM Architecture will provide good alignment &
customer centric marketing & sales direction to Core Business Strategic Priorities
Market
Share
Growth
Increased
Cross-Sell
Increased
Retention
Employee Engagement & Customer Engagement Platforms
Cost
Management
A C E R
Progress Partners - Insights, Strategy, Solutions
Segment Behavioural
Analysis & CRM Plans
Sub-Segmentation
Segment Focus
ChannelsSegment
RM Model
Segment VP
Positioning
Product
Channel
Expansion Retention
Segment
Offering
+
+
+
Focus
Portfolio
Strategies
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Customer Architecture – The CVM Architecture also helps prioritise
implementation and develop focus portfolio strategies
Core Segmentation Model CRM SegmentationMarket Segmentation RM Model
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2
4
3
YS MC FM EN<25% 50% >75%
A C E RExpansionCustomer
ManagementRetentionAcquisition
Progress Partners - Insights, Strategy, Solutions9
CRM / Behavioural & Trigger
Based Programs On-boarding & Ongoing Sales
& Service Processes
Upfront Product Packaging &
Natural Fit Bundles
Building Effective Cross-Sell Capability
A C E R
Core Segmentation Model CRM SegmentationMarket Segmentation RM Model
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2
4
3
YS MC FM EN<25% 50% >75%
Cross Sell Program Capability – The CVM Framework also helps us
structure and develop Integrated Cross-Sell Programs…
ExpansionCustomer Management RetentionAcquisition
Progress Partners - Insights, Strategy, Solutions10
Customer Risk Management – The CVM Framework also helps to
define and direct the Customer Risk Management Models…
Exclusion
Rules
Over-ride
Rules
•Over-ride
rules to
switch off
certain credit
requirements
•Exclusion
rules to
over-ride
certain
credit
exclusions
Product Risk
Scorecards
Scorecard Over-
Ride Rules
Customer Risk Rating
(CRR) Model
Customer Potential
Rating
+9+8+7.0.
-7-8-9
CRR BRR PRR DRR
=
+3+2+10-1-2-3
+3+2+10-1-2-3
+3+2+10-1-2-3
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Risk
Segmentation
Model
Customers Potential Value (Low SOW)
High Medium Low
Custo
mers
Curren
t Value
High
Value
(Premium)
First
priority(move to higher
SOW value)
Second
priority(move to higher
SOW value)
Maintain
Medium
Value
(Middle)
First
priority(move to higher
SOW value)
Second
priority(move to higher
SOW value)
Maintain
Low Value
(Mass)
Third
priority(move to
medium value)
Maintain Not applicable
Very Low
Value (Sub-mass)
Ignore Not applicable Not applicable
Core Segmentation Model CRM SegmentationMarket Segmentation RM Model
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2
4
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YS MC FM EN<25% 50% >75%
Progress Partners - Insights, Strategy, Solutions
Our CVM Framework (ACER Model) provides us with a practical and logical framework to
plan and implement effective Customer Value Growth Programs to achieve the following:
To acquire the most profitable and highest growth customers
To develop appropriate customer relationship models to manage customers profitably
To expand share of wallet and increase profitability
To retain most valuable customers ensuring sustainable profitability
EXTERNAL INTERNALCVM
A C E R
Attitudinal/ Needs
Dem
og
rap
hic Behavioural
Dem
og
/Valu
e
Strategic
Market
Management
Customer
Relationship
Management
ExpansionCustomer Management RetentionAcquisition
Customer Value Management
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In Summary – Our integrated and structured approach to Customer
Value Management will help effectively grow customer value
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Insights, Strategy, Solutions
Kevin Decker
Managing Partner
www.progresspartners.com.au
+61 422 377 318