recentpopularlog in

jerryking : customer_profitability   8

The Missing Piece in Big Food’s Innovation Puzzle
April 1, 2019 | WSJ | by By Carol Ryan.

.......In truth, they are becoming reliant on others to do the heavy lifting. Specialist food ingredient companies like Tate & Lyle and Kerry Group work with global brands behind the scenes to come up with new ideas. These businesses can spend two to three times more on innovation as a percentage of turnover than their biggest clients.

One part of their expertise is overhauling recipes. Ingredients companies can do everything from adding trendy probiotics to taking out excess sugar or gluten. Nestlé got a hand from Tate & Lyle to remove more sugar from its Nesquik range of flavored drinks, while Denmark’s Chr. Hansen helped Kraft Heinz switch from artificial to natural colors in the U.S. giant’s Macaroni & Cheese......Another service food suppliers offer is coming up with successful innovations to help revive sales. Nestlé’s ruby chocolate KitKat, which has become very popular in Asia, was actually created by U.S. cocoa producer Barry Callebaut, for example.

=============================================
See also, "For innovation success, do not follow the money"
07-Nov-2005 | Financial Times | By Michael Schrage "There is
no correlation between the percentage of net revenue spent on R&D
and the innovative capabilities of an organisation – none,"...Just ask
General Motors. No company in the world has spent more on R&D over
the past 25 years. Yet, somehow, GM's market share has
declined....R&D productivity – not R&D investment – is the real
challenge for global innovation. Innovation is not what innovators
innovate, it is what customers actually adopt. Productivity here is not
measured in patents granted but in new customers won and existing
customers profitably retained..
customer_profitability  Big_Food  brands  flavours  food  foodservice  health_foods  healthy_lifestyles  ingredients  ingredient_diversity  innovation  investors  Kraft_Heinz  large_companies  Mondelez  Nestlé  new_ideas  R&D  shifting_tastes  start_ups  Unilever 
april 2019 by jerryking
Cross-selling in the financial sector: Customer profitability is key
Journal of Targeting, Measurement and Analysis for Marketing (2002) 10, 282–296; doi:10.1057/palgrave.jt.5740053

Yasar F Jarrar1 and Andy Neely2
cross-selling  customer_profitability  financial_services 
july 2012 by jerryking
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
For innovation success, do not follow the money
07-Nov-2005 | Financial Times | By Michael Schrage "There is
no correlation between the percentage of net revenue spent on R&D
and the innovative capabilities of an organisation – none,"...Just ask
General Motors. No company in the world has spent more on R&D over
the past 25 years. Yet, somehow, GM's market share has
declined....R&D productivity – not R&D investment – is the real
challenge for global innovation. Innovation is not what innovators
innovate, it is what customers actually adopt. Productivity here is not
measured in patents granted but in new customers won and existing
customers profitably retained...A successful innovation policy is a
competition policy where companies see innovation as a cost-effective
investment to differentiate themselves profitably. If a 1 % R&D
intensity buys market leadership, more power to them; if 15 % is what it
takes to keep up with the competition and satisfy customers, that is
fine, too.
Michael_Schrage  innovation  R&D  productivity  measurements  metrics  ROI  customer_acquisition  correlations  customer_adoption  customer_profitability  GM  decline  competition_policy  innovation_policies 
october 2010 by jerryking

Copy this bookmark:





to read