Define

value & satisfaction - understand how to deliver them The nature of high-performance businesses How to attract & retain customers Improving customer profitability Total quality management

Image value Personnel value Services value Total customer value

Product value
Monetary cost Time cost
Energy cost

Customer delivered value Total customer cost

Psychic cost

Set strategies to satisfy key... By improving critical business... and aligning...

Stakeholders Processes

Resources

Organization

Support Activities

Firm infrastructure Human resource management Technology Development Procurement MarketOutServing Inbound Operabound ice Logistics tions and Logistics sales

Primary Activities

Order

Order

Order

Order

Du Pont (Fibers)

Milliken (Fabric)

Levis (Apparel)

Sears (Retail)

Customer

Delivery

Delivery

Delivery

Delivery

Competition is between networks, not companies. The winner is the company with the better network.

 Are

loyal longer Buy more (new products & upgrades) Spread favorable word-of-mouth Are more brand loyal (less price sensitive) Offer feedback Reduce transaction costs

High margin Many customers/ distributors Medium number of customers/ distributors Few customers/ distributors Accountable

Medium margin Reactive

Low margin Basic or reactive

Proactive

Accountable

Reactive

Partnership

Proactive

Accountable

Suspects

Prospects customers

First-time

Repeat customers

Clients

Advocates Partners

Disqualified prospects

Inactive or ex-customers

Customers

P r o d u c t s

P1 P2 P3 P4

+ +
High profit customer

C1

C2

C3

Highly profitable product Profitable product Losing product Mixed-bag product

Mixed-bag customer

Losing customer

Profit
Competitive advantage

Quality

#1

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

 Define

value & satisfaction - understand how to deliver them The nature of high-performance businesses How to attract & retain customers Improving customer profitability Total quality management