recentpopularlog in

jerryking : customer_lifetime_value   8

What Customers Want
JULY 7, 2003 | Fortune | by Larry Seiden and Geoff Colvin
To increase overall profitability, smart companies retain and
grow their most profitable customers and acquire more of them.
They fix, close, or sell their least profitable customers. And they
organize in a nontraditional way, around customer segments...
A winning value proposition is the one that best meets the full
set of customer needs, including price. That is, certain critical
elements of the experience deliver on the customers’ most important
needs better than the competition. This creates differentiation
and the potential for superior customer profitability—a mutually beneficial value exchange. Your goal is to create mutually beneficial value exchanges with customer segments that offer the greatest economic profit potential. Creating, communicating, and executing competitively dominant value propositions that earn exceptional customer profitability involves a sixstep process we’ve identified at leading companies and dubbed value proposition management.

Step 1: Figure out the needs
of your most profitable customers
Step 2: Get creative
Step 3: Test and verify your hypotheses
Step 4: Tell customers how great
your value propositions are
Step 5: Apply the best value
propositions on a large scale
Step 6: Begin anew.
customers  customer_acquisition  customer_experience  customer_lifetime_value  customer_profitability  customer_segmentation  Dell  Geoff_Colvin  Michael_McDerment  mutually_beneficial  RBC  value_propositions 
april 2012 by jerryking
Will This Customer Sink Your Stock? Here's the newest way to grab competitive advantage: Figure out how profitable your customers really are. - September 30, 2002
By Larry Selden and Geoffrey Colvin
September 30, 2002

Get ready for a big idea that's about to sweep through most companies: managing the enterprise not as a collection of products and services, not as a group of territories, but as a portfolio of customers. Of course, managers have always known that some customers are more profitable than others. But it's amazing how many executives, like those of that big retailer, haven't the least idea just how profitable (or unprofitable) individual customers or customer segments are.
customer_profitability  Geoff_Colvin  Dell  RBC  Fidelity_Investments  HBC  customer_lifetime_value  customers  retailers  banks  data_mining  data_driven  competingonanalytics  competitive_advantage 
april 2012 by jerryking

Copy this bookmark:





to read