In this engaging, challenging and thought-provoking session, D. Keith Pigues, co-author of Winning with Customers: A Playbook for B2B (Pigues and Alderman, Wiley & Sons 2010) will help participants:
- Understand why a focus on your customers’ profitability is the key to your company’s growth and profitability,
- Uncover the differential value customers receive from your company’s value proposition,
- Identify the most valuable opportunities to improve your customers’ business and make more profits for your business in return,
- Collect and utilize customer and competitive insight derived from the use of the Differential Value Proposition (DVP) to improve your organization’s decision-making, investments and results.
2. WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
Are
Your
Customers
at
the
Center
of
Your
Business?
2
3. Customer
Winning
Check-‐up
• We
know
specifically
how
we
help
customers
make
more
money
• We
understand
how
we
will
make
our
customers
more
money
in
the
future
• We
measure
and
track
how
much
money
over
/me
customers
make
doing
business
with
us
• We
measure
and
track
how
much
more
money
our
customers
make
doing
business
with
us
rela/ve
to
our
compe/tors
3
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
4. True
Measure
of
Winning
4
• And,
capture
your
fair
share
How
your
customers…
Make
more
money
by
doing
business
with
you
• In
today’s
world,
you
must
understand
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
5. • The
challenge…
• The
lightning
strike…
• The
enterprise…
The
Journey
to
Win
with
Customers
5
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
7. What
MaYers
to
Customers?
• Quality
and
Reliability?
• ReputaWon?
• RelaWonships?
• Product?
• Technical
Capability?
• Product
Features?
• Financial
Stability?
• Long
Term
Players?
• Increased
Performance
• Earnings
• Growth
• Return
on
Investment
• Shareholder
value
• Drive
Revenue
• Control
Costs
• Improve
Cash
Flow
• Build
Shareholder
Value
Their
Bo>om
Line
7
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
8. TradiWonal
Management
Winning
With
Customers
Inside
Out
How
much
profit
do
we
make
from
our
customers?
Outside
In
Do
our
customers
perform
be>er
because
they
do
business
with
us?
There
Is
More
Than
One
Point
of
View
8
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
10. Differen/al
Value
Proposi/on
Supply
Chain
Product
Line
Brand
Name
Sales
Organiza/on
Marke/ng
Campaigns
What
is
Your
DifferenWal
Value?
DVP
Your
Customers’
Financials
Your
Value
ProposiWon
10
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
11. DVP™ =
Money Your Customer Makes with You vs. Other Alternatives
Amount of Business You Do Together
DVP™ =
$400,000
$10,000,000
= 4%
Measuring
DifferenWal
Value
11
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
12. DVP%
DifferenWal
AYributes
Hypothesis
What
we
think
Ease
of
Install
Customer
Service
Reliability
6%
Current
Customer
view
of
today
Reliability
Customer
Service
Ease
of
Install
Safety
4%
Opportunity
Incremental
improvements
iden9fied
Customer
Service
Safety
3%
Goal
Achievable
18–24
months
from
now
Reliability
Customer
Service
Ease
of
Install
Safety
7%
Measuring
and
Improving
DVP™
12
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
13. 6%
4%
2%
0%
-‐2%
DVP%
Scale
DVP
is
real
money,
not
a
sa/sfac/on
or
loyalty
score
Customer
relies
on
you
to
run
their
business
profitably
–
Indispensible
Customer
considers
relaWonship
healthy
–
Partnership
and
Growth
Customer
does
not
consider
you
significant
to
the
business
–
No
Growth
Customer
is
losing
money
doing
business
with
you
–
At
Risk
Customer
considers
your
offering
a
commodity
–
No
Impact
What
a
DVP™
‘Feels
Like’
13
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
14. DVP
Varies
by
Industry
and
Business
200%
50%
10%
0%
-2%
DVP
• DVP
is
not
compared
by
business
• DVP
varies
by
business
type,
product
maturity
and
geography
1%
A
4%
B
4%
C
7%
D
25%
-‐
30%
E
200%
F
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
15. THE
LIST:
Top
5
things
to
make
our
customers
more
$$$
Investment
Opportunity
Impact
on
Customer
Product
DifferenWaWon
Upgrade
exisWng
low-‐end
products
to
provide
an
offering
for
price-‐sensiWve
buyers.
$3,082,000
Product
Line
Fill
gap
in
Product
Line
by
offering
High
End
OpWon
that
provides
a
natural
up-‐sell
to
mainstream
products.
$1,843,000
Loyalty
Programs
Simplify
the
paperwork
required
to
parWcipate
in
Loyalty
Program.
$1,645,000
Sales
OrganizaWon
Increase
focus
down
channel
to
drive
demand
with
our
customer’s
customers.
$2,071,000
MarkeWng
Materials
Upgraded
materials
required
to
help
close
the
sale
with
our
customer’s
customers.
The
materials
need
to
be
simplified
and
widely
available
in
all
branches.
$5,401,000
15
Co-‐CreaWon
=
Winning
SoluWons
Win
-‐
Win
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
16. Correlate
DVP
to
Financial
Outcomes
2007
GM%
vs
DVP%
10
20
30
40
50
60
70
0
-‐1
-‐2
-‐3
-‐4
1
2
3
4
5
6
7
8
Bathaus
Westlake
Inspired
Interiors
Rhinomart
Ferguson
WM
F.
Meyer
Banner
Supply
DVP%
ID
your
higher
value
customers
ID
your
lower
value
customers
GM%
Measuring
Return
on
Spending
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
17. Linking
DVP
to
Your
Company’s
Profit
17
AT
RISK
PARTNER
TRANSACTIONAL
OPPORTUNITY
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
18. Winning
with
Customers
18
Customers
Company
More
Profits
Growth
+
Profits
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues
19. Q&A
19
Keith@dkeithpigues.com
www.dkeithpigues.com
www.linkedin.com/in/dkeithpigues
@dkeithpigues
713-‐248-‐1539
WINNING
WITH
CUSTOMERS
I
D.
Keith
Pigues