Thales Teixeria, author of Unlocking the Customer Value Chain shared this “Did You Know” slide.
Costco: Costco makes a profit entirely due to its membership fees.
Grocery stores: Supermarkets get more profit % from brands who buy shelf space and cap ends than they do from the products they sell.
P&C insurance: Pay $100 per click yet still feel they get an efficient ROI!
FedEx: Has very slim margins. FedEx absolutely, positively must have systems that work consistently. One phone call complaint, eliminates Profit!
Apple: Like Dell Computers Apple receives your payment before paying for the parts to make your iPhone.
RyanAir: A $15 international plane ticket is profitable because RyanAir makes so much on upgrades from passengers.
Business today is conducted far differently than it was 15 years ago. Teixeria shared three slides on how things have changed for one of his favorite restaurants he frequents over the past 15 years, and how they will change further soon.
Disruption Today – Decoupling
Today there are four possible disruptions taking place in Turmeric Thai Garden’s Customer Value Chain. .
Yelp now helps you choose a restaurant; you can use Google to do the same thing and look at their review ratings.
Open Table similarly helps you to reserve a table, while Uber can get you there, or bring the food to you. The Toast App allows you to pay for your meal!
Soon CloudKitchens Apps will allow you to order/receive food or drinks from a restaurant you’re not even dining at.
Where does Decoupling Occur?
Decoupling occurs when customers tend to be most dissatisfied with the established company.
How do you determine opportunities and measure your customers’ dissatisfaction to discover where you need to improve?
You need to identify all the segments of your purchasing chain. Teixeria provided several examples with the Automotive buying process being one most of you are familiar with. Find the weak link in your purchase process by questioning several of your customers in each segment.
Car buyers, particularly women, hate the negotiating segment. While everyone enjoys the feeling of driving off the dealers’ lot with a brand-new vehicle.
Measure Customer Satisfaction
To discover your customers’ purchase chain satisfaction, ask them. Teixeria doesn’t feel you have to ask a lot of customers either. First, build/identify your purchase chain, and then find a half dozen or more customers for each segment and measure how they feel about the experience. You can use the NPS scale, or another consistent measure to determine your customer’s satisfaction level.
Improve Where it’s Low.
Once you’ve determined how your customers measure each of your purchase decision chain segments, the best place to start is where customer satisfaction is low. That’s where decoupling starts.
This is a customer-centric approach to improving customer satisfaction. It will stir innovation and make your customer experience vastly better.
Three Options to Improve
What does customer satisfaction come from? Three costs really:
- Too expensive
- Too Slow
- Too Complicated
Think about your customer experiences. Too expensive may not deter you, however, if the remainder of the elements in your purchase decision chain doesn’t meet or exceed the value levels for your customer’s experience, it will encourage them to look elsewhere.
Too slow can occur in several of the segments of the purchase chain. Any lackadaisical or sluggish element can easily persuade a customer to look elsewhere.
Complicated? Anything easier will always serve customers better. Uber is a prime example of how the industry changed overnight by simplifying the ride-hailing industry.
Developing a customer-centric strategy prevents decoupling and disruption. Unlocking the Customer Value Chain is an enlightening journey to open your mind to innovative ideas to spark opportunities.
Unlocking The Customer Value Chain - A Playbook for Innovation!!
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