The world has completely changed in the last 10-15 years. The digitization and accessibility of information has completely changed how customers behave. We are in the age of the customer and an experience economy. No longer can business leaders and managers rely on the ‘tried and true’ product centric business models that originated in the dawn of the industrial revolution. Today, savvy business leaders have worked out that it is the configuration of the customer portfolio that drives long-term, profitable growth for the business, not products.
Profit by Design provides a unique perspective on how organisations can deliberately shape the value of their customer portfolio.
Profit by Design delivers key insights and a step by step approach for leaders and managers of organisations of all types and sizes.
Six Key Learnings from Profit by Design
Product centric business models were developed during the Industrial Revolution, over say the last 250 years. These are the most common approaches to business design today, yet the world has completely changed in the last 10-15 years. More importantly customers – those people that pay for your services – have changed how they buy, how they behave and how they provide word of mouth. Time to overhaul how we design our organisations.
Today the customer is in control. They are in total control of whether they chose to buy or not. To subscribe or not, to repurchase or not. They choose whether to provide positive word of mouth or totally trash you on social media. Customers do not trust advertising. They will believe people in their network and total strangers on social media before advertising messages. Your success – however you define it – depends on your relationships with your customers. It depends on the make-up of customer portfolio. And the construct of your customer portfolio needs to be designed.
We know that not all customers are equal; either in what value they represent to you, or in how they perceive the value you deliver. Yet we continually treat all customers the same. This generic approach is a legacy of product centric business design. Recognising that not all customers are equal, let’s then design our customer portfolios for the maximum mutual value exchange, and long-term profitability.
A meaningful customer strategy is one that is specifically designed based on an understanding of your unique two-way value exchange with your customers. Which customer groups will you grow? Which customer groups will you need to reengineer your relationships with? This gets defined in your customer strategy. Supported with the templates, chapters four-five-and-six detail how to create your meaningful customer strategy that is implementable.
The purpose of communication is to engage with your chosen customers. Do not let this happen by chance. Your messaging with customers needs to be crafted in a way that resonates with your awesome customers. Chapters seven and eight provide you with a framework to ensure you design value propositions that communicate your values and the value your customers are looking for. Chapter nine describes to old sales traps that are no longer relevant for customers today. And then details the Architecture for Customer Engagement, that you can use to design your customer engagement approach.
The final chapter provides you with a framework to assess where you are now and how you make progress through the five levels of customer engagement. The chapter will also provide you with practical tips on managing the change and developing your measurement system to help you stay on track. It is about building the capability within your organisation to stay the course and create a profitable business. The appendix has three case studies demonstrating the application of these approaches to businesses in B2B, in B2C, and a non-profit organisation.
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Paperback: 159 pages
Published by Hambone Publishing, Melbourne Australia, November 2019
Profit by Design® is a registered trademark with IP Australia.