Thursday, March 25, 2010

Customer Focus Drives Organizational Strategy

I would like to applaud Dale Wolf of The Cx Institute for observing that "your customer needs set up your corporate strategy. Your corporate strategy sets up your customer expectations.

For example, if the customers you are targeting want “everyday low price” then they will expect you to use specific strategies and processes to deliver this position consistently.

Growth Companies must deliver the best, most effective products, speed to market, innovation and market leadership driven by people who are entrepreneurial and who are rewarded for increasing revenue.

Low-Cost Companies must deliver low price with products that have exactly the benefits that customers want without unwanted frills by standardizing processes, eliminating waste and rewarding efficiency.

Relationship Companies must be intensely customer-centric and provide intense service, multiple touchpoints and consistent quality to build loyalty and reward improvements in customer lifetime value.

Risk Averse Companies must imitate and let leaders go first and then improve with quality control and tight contracts and reward for compliance.

Use customer focus to eliminate strategies and processes that confuse direction; focus right where you want to be and re-define your processes so that they simply deliver the expected value at a profit level you find acceptable."

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