THE CLIENT PAYS YOUR SALARY

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THE CLIENT PAYS YOUR SALARY!!!!!
AN INTERACTIVE MEETING ABOUT CUSTOMER FOCUS
VALUES
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• The client is the most important visitor of our
  house. He is not an interruption of our work. He
  is our goal.
• If we serve the client, we do not favour him. The
  client favours us, if we may serve him!!
• Mahatma Gandhi

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INTRODUCTION-1

• Clients are the engine of enterprises. They make
  the difference between profits and losses
• Therefore the battle for the client is fought on
  different areas by
• Improving customer satisfaction
• Loyalty programs
• Relation marketing
• CRM
• The missing link in all these activities is the
  insight
• In what customer values are
• How to create customer values
• How to communicate customer values
• How to deliver customer values
• And how to translate customer focus in market
  share and profit

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INTRODUCTION-2

• In this presentation the most important ins and
  outs of creating customer focus by customer value
  management will be discussed
• The goal is to make aware about
• The importance of customer focus and customer
  value management
• The road which has to be travelled by customer
  value management to achieve customer focus

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CONTENT MEETING

• The changing customer and the need for customer
  focus
• Explanation
• Customer focus
• Customer Values Management
• Customer Value Scan

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THE CHANGING CLIENT
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CHARACTERISTICS CONSTR.INDUSTRY-1

• Complex Decision Making Unit (DMU)
• Principal (wants, needs, user)
• Local government (law/regulations)
• Architects (prescriptor)
• Constructors (prescriptor)
• Main contractor (buyer)
• Sub contractor (installer)
• Wholesale (distribution)
• In every project different organizations are
  involved. The construction differs highly from
  the process industry whereby more long term
  relations can grow and at the long run
  partnership can evolve.

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CHARACTERISTICS CONSTR.INDUSTRY-2

• At every new project a producer active in the
  construction has to
• Identify the relevant players
• Identify their needs, wants, demands and
  preferences
• Furthermore the construction industry has a more
  technical orientation. CEOs and managers
  frequently have a technical education and the
  career path went more often through production
  and product development instead of sales and
  marketing
• So mentality in construction is frequently
  product orientated
• Furthermore commercial enforcements are aimed at
  gaining projects instead of making relations
  

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CHANGING MARKETS / CLIENTS-1

• Concentration at industry level
• less competitors
• BUT competitors become larger and more
  professional
• From ad hoc competition with local / regional
  players to continued competition with national
  players
• Knowledge from market players about each others
  activities and client relations grows
• Competition has intensified heavily
• Concentration at contractors level
• In most European countries large companies
  developed as a result of takeovers and mergers
• The concentration does seem to be at its end
• The major projects are done and frequently even
  developed by the large contractors.
• Instead of gaining projects, developing long term
  partnership becomes more important

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CHANGING MARKETS / CLIENTS-2

• Clients mentality has changed as well
• Expectations become higher
• Quality of products is measured based on the
  services around the core product
• From make and buy to listen and serve
• Not transactions but relations are the base for
  success
• From market share to client share
• In the construction mentality has changed
• From gaining projects to creating client
  relations.
• The intensified competition can only be avoided
  with long term relations.
• Long term relations are built on customer focus
  by customer values management!!!!!

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CUSTOMER FOCUSBYC.V. MANAGEMENT
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CUSTOMER VALUE CYCLE
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Understanding Customer Value
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Sustain Customer Value
Selecting Customer Value
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5
Creating Customer Value
Delivering Customer Value
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Organising Customer Value
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1-UNDERSTANDING CUSTOMER VALUES

• Customer values (needs wants) and market info.
  is gathered by marketing department. Input from
• The sales force,
• Technical advisors,
• Client service departments,
• Distributors
• Market research
• The gathered information has to be shared in the
  organization. So all employees must understand
  what the final goal of their activities is
  (serving the client). Means for this are
• Internal newsletters / house magazines
• The intranet (frequently not applicable for
  production pers)
• Missions statement
• Departmental meetings

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2-SELECTING CUSTOMER VALUES

• In the construction industry the DMU is complex.
  Each involved type of organization has its own
  needs and wants.
• Furthermore the construction industry is very
  diverse
• Therefore suppliers have to
• Segment the market and the organisations involved
• Target the relevant market segments and most
  interesting organization types (based on the role
  in the DMU)
• Position the organisation/brand in relation to
  competitors (why should the market choose for a
  Consolis company)

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3-CREATING CUSTOMER VALUES

• Creating customer value is done by product
  development

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4-ORGANISING CUSTOMER VALUES

• The created customer value has to be produced on
  a continuous base. Therefore the needs and wants
  of the selected target groups must be known and
  carried out in the complete business process.
• To achieve this
• Business culture must become client orientated
• Management must enforce, facilitate and reward
  client orientated behaviour
• Company strategy must focus on customer value
  instead of share holders value
• HRM trainings, reward, judge and select employees
  with a good customer value orientation
• In the company procedures customer values must be
  formalized

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5-DELIVERING CUSTOMER VALUES

• The delivery of customer value is primary done by
  the product delivered to the client
• Furthermore the employees with customer contact
  plays a very important role.
• Sales force, technical advisors, service and
  order department, distribution.
• But non personal client contact through mailings,
  brochures, the website is important for the
  delivery of customer value as well
• At all contacts the client orientation of the
  company must be clear and tangible.

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6-SUSTAIN CUSTOMER VALUES

• Reliability customer contact
• Keep promises, do it within the agreed schedule,
  do it right immediately
• Responsiveness customer contact
• Help client directly, willingness to help clients
• Care and empathy
• Give client confidence, courtesy, knowledge to
  help, understanding problems of customers
• Complaint management
• Easiness to complaint, priority regarding
  complaints, usage of complaints to improve
• Partnership
• Involve clients at major changes, give a feeling
  of partnership

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RESULTS OF CUSTOMER VALUE MNGMNT
EMPLOYEE SATISFACTION

CREATE C.VALUE

CUSTOMER SATISFACTION


DELIVER C.VALUE
MARKET SHARE
PROFIT




CUSTOMER LOYALTY
SUSTAIN C.VALUE


REPETITION BUYING
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CUSTOMER VALUESCAN
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CUSTOMER VALUE SCAN

• To install customer value management it is
  necessary to investigate the status quo to
  determine the strategy and actions which must be
  taken
• As well as internal (employees) as external
  (client) interviews have to conducted.
• Based on the interview results you can see
• In what degree in general in your company
  customer value management is installed
• Which link in the customer value cycle of your
  company is the strongest and which is weakest
• The differences between the self opinion of the
  organisation and the client opinion
• Given the insight as a result of the internal and
  external interviews, its clear where to change
  the organisation to install customer value
  management on a continuous base