By S. Vandermerwe
During this ebook the writer brings jointly exact and leading edge paintings established upon her personal learn and paintings with top businesses within the overlapping parts of procedure, advertising and marketing and innovation to supply a brand new and dynamic version to enforce patron concentration in companies. In an atmosphere of falling margins the version indicates tips to bring up price to shoppers and increase enterprise effects.
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Additional info for Breaking Through: Implementing Customer Focus in Enterprises (Bloomberg Professional Library)
As part of its total financial management plan for its customers, the stockbroker offered what it called ‘Beyond Banking’, which merges the artificially separated buckets of stockbroking and banking and ties them together as part of ongoing, lifetime liquidity management with a single point of customer contact. The whole point about a unified customer concept is that the customer is better off, in good times and bad, which means that ultimately so is the enterprise. Virgin One consolidates loans with checking, savings, money market, car loan and mortgage accounts so that customers don’t have to go through the costs, inconvenience and stress of having to deal with different institutions for different financial requirements.
This is the fate that awaits not only the mobile phone manufacturers, but all other enterprises who continue to perpetuate the product-based business model. With product focus, investments are made in products so the idea is to hold onto them for as long as possible, perfect them, update them, and extract as much value from them early on before the competitive onslaught hits, eroding margins and forcing investments Recast the Business Model $ Returns Returns decrease Time The value of products diminishes with time Exhibit 2 Conceptual product curve and returns over time to be remade, so perpetuating the classic product lifecycle treadmill (see Exhibit 2).
They can become aware just in time that the customer approach is more resilient for a future where pressure mounts as dramatic changes in the environment threaten to destroy not only their market power, but perhaps that of the whole industry as well. Usually by that time the numbers or key ratios have already begun to slacken, because most executives still tend to focus on the figures before they look at the market. But that doesn’t stop them taking the measures to make people aware that the business model has to be altered to focus on customers and their long-term and longer-lasting rewards, rather than on making, buying and selling products that eventually lead to diminishing returns.