Rules for Creating Customer
Partnerships1 |
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Make customer partnership everybody's job:
Don't leave partnering with customers to isolated departments like
marketing or customer service. Your organization exists to serve its
customers, and this recognition should permeate every process,
department, and job role. Everybody in your organization, from
front-line employees to the Board Chairperson, must find ways to
connect with customers.
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Partner with potential customers:
Potential customers represent a tremendous opportunity - you need to
understand why they aren't buying your product or services. Uncover
this information through market research surveys or focus groups or
special incentive offers or thorough postmortems on the lost sales.
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Partner with lost customers:
Interview disenchanted customers, empathize with their decision and
find out why they are leaving - not all of these customers will
return, but the lessons learned in the process can prevent future
losses.
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Increase "wallet share": Generate
more revenue from your existing customers
through discovering untapped needs that open up exciting market
opportunities and offering new or augmented products or services.
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Let go of "poor fit" customers:
Use the 80/20
principle - defection of unprofitable customers should not
concern you much. If some customers need services that you cannot or
should not offer in the spirit of your mission and values, let them go
elsewhere, or otherwise you may lose the competitive advantage of your
integrity.
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Customer Partnership
Defined
"Customer partnership is a shared journey to create a future
for both parties that is better than either could have developed alone."1
The customer influences every aspect of your business and is the foundation of your organization's success. In
today's turbulent times of rapid and chaotic change, "no force is more
grounding and stabilizing than a partnership with customers."1
The term 'customer partnership' we take not so much in its legal definition
of co-ownership but rather in its sense of sharing in benefits,
profits and losses of your company.
Customer partnership is more than "putting customers first",
or finding mutually satisfactory solutions to shared problems, or
a dedication to excellence in every sale or service encounter. It also
requires commitment to forging long-term relationships that create synergies
of knowledge, security, and adaptability for both parties.
Why Customer Partnership?
Fierce competition today forces companies to become much more
creative and flexible in their dealings with customers to give them exactly
what they want -
faster. Creating a partnership with customers will help your
organizations maintain the focus you need to make good decisions and harness
the power and commitment you need to weather volatile times. Partnering with
customers represents your firm's "capacity to
anticipate what customers need even before they know they need it."2
Case in Point: Nike
When Nike partnered with their running customers, they
discovered that, apart from running shoes and apparel, they also needed sport
watches, MP3 players, and heart monitors. Nike developed these offerings and
their equipment business boasted sales in excess of US$400 million within
few years.
Case in Point:
BMW
In partnership with its customers and external innovators,
BMW is constantly seeking to discover new technologies and design features
to put into future cars. To harvest the insights of creative minds outside
the BMW Group, the firm's Virtual Innovation Agency (VIA) is the point of
contact for all external innovators who do not as yet have contacts within
the firm. VIA makes it easy for car fans to communicate their ideas through
its web-site, with additional online discussions that solicit ideas from
enthusiasts around the world...More
Case in Point:
Dell Computer Corporation
Dell start their innovation process with asking their
customers, "What would you really want this thing to do? Is there a
different way to accomplish that?" Then they meet with their suppliers and
ask, "Can we do this in a different way?" Then they try to come up with a
totally different approach that exceeds the original objectives.
To continually bring information from the outside world into
Dell, with an eye toward staying as competitive as they can, Chairman and
CEO of the
Dell Computer Corporation uses a variety of innovative approaches. He
says, "I also enjoy roaming around outside the company to see what people
think of us. On the Web, nobody knows I'm a CEO. I'll hang out in chatrooms
where actual users commonly chat about Dell and our competitors. I listen to
their conversations as they discuss their purchases and their likes and
dislikes. It's a tremendous learning opportunity."1...More
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