AMSA – Future Leaders Programme Action Learning Project

“Thinking in New Boxes”

Coffee Muffins & Steel June 2016

“The Improvement of Customer relationships to ensure we gain customers loyalty and sustainable relationships are established”

Background

Initiative overview

Current Challenges• Customers satisfaction• Quality • On time delivery• High cost

Objectives• Understand our customers• Value our customers• Build customer value• Remove organisation silos

Risks• Customer retention

• Loss of market share

Solution• Follow the Lean Six Sigma

DMAIC approach i.e. DEFINE, MEASURE, ANALYSE, IMPROVE & CONTROL

• Introduce 2 visible dashboards - SERVQUAL Model (P-E Gap) - Customer Lifetime Value (CLV)• Initiate ACTION

In context

Doing nothing is going to cost us

Doing nothing is going to cost us

We have to do “something”

Methodology and recommended solution

Research methodology

The Problem We are at risk of losing customers

Project ScopeGalvanized products

The goalImprovement of customer relationships to

ensure we gain customer loyalty and sustainable relationships are established

MeasureDefine Analyse Improve Control

Research methodology

SERVQUAL = The P-E gap dashboard

MeasureDefine Analyse Improve Control

Tangibles Reliability Empathy Assurance Responsiveness

-8

-6

-4

-2

0

2

4

6

PerceptionExpectationGap

Research methodology

Customer Life Cycle dashboard (CLV)

MeasureDefine Analyse Improve Control

• www.salesforce.com

Research methodology

Customer Life Cycle dashboard (CLV)

MeasureDefine Analyse Improve Control

CLV is the net present value of the sum of all future revenues

from a customer, minus all costs associated

with that customer

Research methodology

What will these tools help us achieve?

MeasureDefine Analyse Improve Control

Uncover hidden possibilities Anticipate

change

Make the best business decision

Profit from future potential

Research methodology

MeasureDefine Analyse Improve Control

Position

Product

People

PlaceProcesses

PromotionPrice

Physicalexperience

Customer Relationship

People influence the Process and Physical

experience

Improve Customer Value

Proposition through a Process focussed approach

Define Cpk’s

CLV and P-E gap interacts with the Customer

Value Proposition

Envisaged benefit

Understandwhat customer needs

ROR = Return on Relationship Sustainable metrics

Improvecustomer value

by doing things differently

Better Customer relations

Quantifycustomers value

SERVQUAL Customer Lifetime Value

Customer Lifetime Value

Break down silos

How to unlock value?

Project implementation and proof of concept

The planSilo sessions (May 2016)• Concept introduced to Internal Stakeholders• Concept introduced to 2 Pilot Customers

Develop CLV and P-E gap prototypes (June 2016)

Action plan (August 2016)• Stakeholder engagement

• Proposed actions

• Establish silo accountability

P-E gap survey (July – August 2016)• Analysis of survey results

Customer feedback (August 2016)

• Present findings

• Propose a way forward

Continuous improvement

The plan Envisaged interaction with the dashboard

• www.salesforce.com

Customer contact reports

Account plans

Industry plans

Silo Accountability Lost order tracking

2 visible real time data driven dashboards

1. SERVQUAL (P-E Gap)

2. CLV

Let’s do it!

Let’s do it!

Let’s do it!