pres 134 gautam mahajan august 17 2016
TRANSCRIPT
• Service innovations improve the quality-of-life of individuals and the wealth of institutions
• Service is the application of knowledge for the benefit of others, …“human-centered value-cocreation systems” in business and society. Service innovations impact individuals and institutions at all levels, from family to community
Value Creation
Executing proactive, conscious, inspired and imaginative actions that Create better gains or benefits for Customers and all stakeholders, including enhanced returns on investment
The role of an executive is to create value, and go beyond being a functional administrator and a efficiency expert
Corporate Service Value Creation
• Service and Value Creation Culture has to run throughout organisation
– Top level led
– Bottom led
• Customer Strategy/Service Strategy
• Customer Centric Circles
Value
• Value for Money
• Money for Value
• How to measure and build value?
• Value is always comparative as perceived by the Customer
Measuring Customer Value
Customer Value Added
CVA = Perceived worth of your offer
Perceived worth of competitive offer
Adding Customer Value
Creates Competitive Advantage!
To measure Relative Value Added we need to
- Measure market perceptions of value we add
- Measure market perceptions of value added by
competitors
- Define a relationship between the two
CVA scores lead Market
Share ! Example from Telecom %age installs
CVA
score
Pts of Share
Year 1 Year 2 Year 3
Value (-4 Mos.)
Market Share (%)
ROI Vs. Relative Customer Value (PIMS Data over 1000 companies)
Relative Customer Value
0
5
10
15
20
25
30
RO
I (%
)
Consumer Industrial Goods
Bottom 20% of
Businesses
Middle 20% of
Businesses
Top 20% of
Businesses
Customer Value and Share Price
• A 1% increase in value or satisfaction
increased share price by 4.6%*
*U of Michigan study
30 (Illustrative Data)
Customer Loyalty Predictor
0
10
20
30
40
50
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10
Customer Value Rating
What is Improvement Impact ?
Predicted
Loss Rate
= 33%
Moving from an
7.0 to an 8.0
would improve
loyalty to 67%
Increase in Customer Net Value for 5% Increase in
Customer Retention
0 20 40 60 80 100
Software
Publishing
Office Building Mgt
Life Insurance
Industrial Distribution
Industrial Brokerage
Credit Card
Branch Bank Deposits
Auto Service
Auto/Home Insurance
Advertising Agency
13
CVA .
BCP Telecomunicações
IIT Delhi
CVA
CELESTICA
Chambal Fertilisers & Chemicals
Zuari
Coromandel