Customer Equity Management
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DO YOU KNOW WHAT YOUR CUSTOMERS WANT? ! ? # YOU COULD! Customer Equity Analysis can help. And you will need to use your IT strategically alligned. CUSTOMER EQUITY RELATIONSHIP BRAND EQUITY VALUE EQUITY Quality, Price, Convinience Brand awareness/attitude, corporate ethics, emotional tie Loyalty, affinity, community/ knowledge building programs Customer Equity is described in three components - "value", "relationship" and "brand". Through your already existing custiomer touch points, you can gather data which can help you draw "What is most valuable to your customers?" [Fig.1], "Comparision of your performance against competitors [Fig 2], and deeper insights into each element of Customer Equity [Fig. 3] Fig. 1: Comparision of what customers want, vs. what you (firm) is delivering What customer's said about their needs/wants Fig. 3: Comparision of what customers want along "value" equity, vs. what you (firm) is delivering What customer's said about their needs/wants along the sub-drivers of "value" equity QUALITY PRICE CONVINIENCE Fig. 2: Comparision of you (firm) with 2 other players/competitors along the three "customer equities" What customer's said about their needs/wants RETAIL INTERNET HELP DESK CALL CENTER CUSTOMER SERVEYS Capturing data about customer interaction in a centralized system is essential for this analysis Once customer data is captured in a centralized system, alligning technology at every cutomer facing ends is important. Each customer facing systems should be capable of targeting the customers randomly CUSTOMER TOUCH POINT BUSINESS INTELLIGENCE 6000 5000 4000 3000 2000 0 -1000 -2000 -3000 -4000 Randon selection of customers, once they have requested service, or came in touch with the firm for the purpose of gathering information(via surveys) to measure about customer equity Connecting all the customer touch points (call center, internet, retail, etc.). The results of the survey (over a specified duration) is used to illustrateyour performance against a (sample) customer's expectations [Fig 1], performance as compared with your competitors [Fig. 2], or for creating a more drill down picture of each components of equity [Fig. 3] HOW DOES IT WORK? Ideation and design: Pradyot Rai, Concept : Customer Equity Management, Roland T. Rust, Katherine N. Lemon, Das Narayandas Graphics Design: Pradyot Rai (inspired by www.xplane.com) BUSINESS MISSION PROFIT VOLUME Customer equity analysis allows many strategic decisions to be taken, which may include following -- -- Budgeting of Marketing spending to change customer perceptions -- Improving service/product performance to be alligned with the market needs -- Evaluating, monitoring and measuring effectiveness of business strategy -- Calculating Life Time Value of Customer, performing customer selection, and segmentation
description
A brilliant framework for slicing marketing dollars towards customer management – it tells you how to find what your customers are looking in/with you – Relationships (Service, loyalty, Community) Value (price, quality, product) or Brand (image, corporate governance, esteem). This is the new marketing mantra; CRM is old.
Transcript of Customer Equity Management
DO YOU KNOW WHAT YOUR CUSTOMERS WANT? !
? #
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YOU COULD!Customer Equity Analysis can help. And you will need to use your IT strategically alligned.
CUSTOMEREQUITY
RELATIONSHIP
BRAND EQUITY
VALUE EQUITY
Quality, Price, Convinience
Brand awareness/attitude, corporate ethics, emotional tie
Loyalty, affinity, community/knowledge building programs
Customer Equity is described in three components - "value", "relationship" and "brand". Through your already existing custiomer touch points, you can gather data which can help you draw "What is most valuable to your customers?" [Fig.1], "Comparision of your performance against competitors [Fig 2], and deeper insights into each element of Customer Equity [Fig. 3]
Fig. 1: Comparision of what customers want, vs. what you (firm) is delivering
What customer's said about their needs/wants
Fig. 3: Comparision of what customers want along "value" equity, vs. what you (firm) is delivering
What customer's said about their needs/wants along the sub-drivers of "value" equity
QUALITY PRICE CONVINIENCE
Fig. 2: Comparision of you (firm) with 2 other players/competitors along the three "customer equities"
What customer's said about their needs/wants
RETAIL
INTERNET
HELP DESK
CALL CENTER
CUSTOMERSERVEYS
Capturing data about customer interaction in a centralized system is essential for this analysis
Once customer data is captured in a centralized system, alligning technology at every cutomer facing ends is important. Each customer facing systems should be capable of targeting the customers randomly
CUSTOMERTOUCH POINT BUSINESS
INTELLIGENCE
6000
5000
4000
3000
2000
0
-1000
-2000
-3000
-4000
Randon selection of customers, once they have requested service, or came in touch with the firm for the purpose of gathering information(via surveys) to measure about customer equity
Connecting all the customer touch points (call center, internet, retail, etc.). The results of the survey (over a specified duration) is used to illustrateyour performance against a (sample) customer's expectations [Fig 1], performance as compared with your competitors [Fig. 2], or for creating a more drill down picture of each components of equity [Fig. 3]
HOW DOES IT WORK?
Ideation and design: Pradyot Rai, Concept: Customer Equity Management, Roland T. Rust, Katherine N. Lemon, Das Narayandas Graphics Design: Pradyot Rai (inspired by www.xplane.com)
BUSINESS MISSION
PR
OFI
T
VOLUME
Customer equity analysis allows many strategic decisions to be taken, which may include following --
-- Budgeting of Marketing spending to change customer perceptions-- Improving service/product performance to be alligned with the market needs-- Evaluating, monitoring and measuring effectiveness of business strategy-- Calculating Life Time Value of Customer, performing customer selection, and segmentation
