Valuespace – Where Customers and Marketers Meet 11/13/2015 Copyright: 2001-14, Dr. Banwari Mittal, ValueSpace, Inc., Cincinnati, USA. .

Valuespace – Where Customers and Marketers Meet

04/20/23 Copyright: 2001-14, Dr. Banwari Mittal, ValueSpace, Inc., Cincinnati, USA. www.Myvaluespace.com

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www.myvaluespace.com

Ban Mittal, Ph.D.Business Consultant, Professor, Author

ValueSpace, USA

Valuespace– A New Executive Guide to Creating Business Growth



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VALUEThe Basic Currency of all human exchange.



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.

PRICE

PER

SON

ALI

ZATI

ON

3 P’s Customer Valuespace

.P

ER

FO

RM

AN

CE

CUSTOMER



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Customer ValueSpace

CUSTOMER

PE

RS

ON

AL

IZA

TIO

N

PERFORMANCE

PRICE

Quality

Innovation

Cus

tom

izat

ion

Fair Price

Value Price

Easy REACH

Rapid

RESPONSE

RELATIONSHIP

Nurture

3R

’s o

f P

ers

on

ali

zati

on

3P’s



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Performance Value - Quality

Effectively does the job it is supposed to do, even implicit.(e.g., medical diagnosis is as accurate and complete as current knowledge will permit.)

Performance>Promise Roach Killer



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Roach Killer Ad

Omitted



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Performance Value--Performance Value-- Innovations

a. Big Breakthru’s

b. TinkeringLong shoe

horns



8



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Tinkering-long shoehorns

• The Plastic Shoehorn

• Length is 16 1/4".

• Assorted colors.



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Valuespace -- Performance Value

Customization



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Customer Valuespace

Price Price ValueValue

1. Fair Price

2. Value Price

Gouging Tricky price

----------------------------------------

Benefits > Costs



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Customer Valuespace Personalization ValuePersonalization Value

1. Easy Access

2. Rapid Response

3. Relational Nurture

Anytime, anywhere Quick connect First contact is right--------------------------------------------- Understand my concerns Resolution is quick Resolution is just Keep me informed-------------------------------------------- Recognition Remember history Trustworthy Enjoyable interaction



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Customer ValueSpace

CUSTOMER

PE

RS

ON

AL

IZA

TIO

N

PERFORMANCE

PRICE

Quality

Innovation

Cus

tom

izat

ion

Fair Price

Value Price

Easy REACH

Rapid

RESPONSE

RELATIONSHIP

Nurture

3R

’s o

f P

ers

on

ali

zati

on

3P’s



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CPS

PM

PC

QI

C

FPVPRC

RS

RLCustomer Valuespace

•Performance

–Quality–Innovation–Customization

•Price–Fair Price–Value Price

•Personalization

–Reach

–Response

–Relationship

UPS

O

O

O

O

Rosenbluth

O

O

O

O

O

O

SYSCO

O

O

O

O

O

O



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Customer Valuespace

Innovation

Customer (Sender) UPS Recipient

$

•Performance–Quality–Innovation–Customization


•Personalization

–Reach

–Response

–Relationship

UPS

O

O

O

O



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Customer Valuespace

Customization



•Personalization

–Reach

–Response

–Relationship

UPS

O

O

O

O



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Customer Valuespace

Price Value

To Be or Not To Be?

3 Days From NY to LA

Ground or Air ?

That is the Question.

(5 days – 2 days)



•Personalization

–Reach

–Response

–Relationship

UPS

O

O

O

O



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Customer Valuespace

Reach



•Personalization

–Reach

–Response

–Relationship

UPS

O

O

O

O



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Innovations

Give Customer New Capabilities

Te

lesu

ite



•Personalization

–Reach

–Response

–Relationship

Rosenbluth

OO

O

OOO

Image omitted



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Innovations Te

lesu

ite Image omitted



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Valuespace for Rosenbluth

Customized Suite of Services

Reduce Total Spend

Call within Europe

Enroute Help

Got to Try



•Personalization

–Reach

–Response

–Relationship

Rosenbluth

OO

O

OOO



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•Personalization

–Reach

–Response

–Relationship

Sysco

OO

O

O

OO

The Spinach Salad story



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New Value Proposition: SYSCO

Higher Price That Offers Even More Value

“A” “B”

Image omitted



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•Personalization

–Reach

–Response

–Relationship

Sysco

OO

O

O

OO

Response.

Personal Delivery

Relationship –

Ann’s Restaurant Story

The Spinach Salad story



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Customer Valuespace

• ComprehensiveComprehensive• Non-redundant.Non-redundant.• Hierarchical Hierarchical • SimpleSimple• Practical Practical

thereforetherefore

3P’s of Customer Valuespace• Performance• Price• Personalization

•Memorize Memorize 3P’s and 8 Values3P’s and 8 Values

C

PS

PM

PC

Q

I

C

FPVPRC

RS

RL



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Customer Valuespace DRIVERS

VALUE- CREATINGORGANIZATION

Organizational Processes

C

PS

PM

PC

Q

I

C

FPVPRC

RS

RL

Customer ValueCustomer Value Drivers



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Customer Valuespace : Drivers

QUALITYQUALITY DriversDrivers

Defining Quality in Customer Terms. Brand Standards (Best-in-class) Deploying Technology, Systems, & Processes

for Quality ……. ……….



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Drivers of INNOVATIONS. INNOVATIONS.

Reward Intrepreneuring …. …. A Strong Futuristic Orientation

Customer Valuespace- Drivers



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Drivers of Customization Customization Mass Customization

Production Processes … Collaboration DNA Deep Customer Knowledge

Customer Valuespace- Drivers

Image omitted



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Deep Customer Knowledge

*

Image omitted



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Price Value Drivers Performance upgrade

(Non-commoditization) Task versus Results indexed ….

Pricing ethics Price Value EDUCATION.

Customer Valuespace Drivers



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Drivers of Personalization Drivers of Personalization ValueValue

Easy AccessEasy Access Rapid ResponseRapid Response Relational NurtureRelational Nurture

Customer Retention as Business Model Digitized Customer Database Capability 360 Customer Visibility …. Social Bonding Habits

Customer Valuespace Drivers



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Customer Valuespace and Firm Performance

VALUE- CREATINGORGANIZATION

------------------------

Value-Drivers

C

PS

PM

PC

Q

I

C

FPVPRC

RS

RL

Q. Can we measure these value components and drivers?

Outcomes----------

FirmLevel

CustomerLevel



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Customer Valuespace

Customer ViewCustomer ViewValue ComponentsValue Components

2.2. Self AuditSelf AuditValue Driver ProcessesValue Driver Processes

A New Measurement Agenda



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Customer Valuespace

Customer View-- Value ComponentsCustomer View-- Value Components

1. The product does everything I 1. The product does everything I could wish for.could wish for.

2. Sometimes I think the product was 2. Sometimes I think the product was designed just for me.designed just for me.

3. No other product is as good a 3. No other product is as good a value for money as this one.value for money as this one.




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Customer Valuespace

Customer View-- Value Components4. I wouldn’t know where to go or whom to call if

I needed help on this product.5. They resolve all my problems as soon as they

arise.6. I enjoy dealing with people at this company.

7. We – our company and theirs-- work in total harmony, caring for our joint interests.




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Customer Valuespace – A New Measurement Agenda

Company View (Self-Audit) – Value Drivers.

• Our brand standards are best-in-class.• We are deemed an innovation leader in

our industry• We have customer specific applications

aplenty• Our performance/price ratio has an

uptrend.



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Customer Valuespace – A New Measurement Agenda

Company View (Self-Audit) – Value Drivers.

• Our product development is driven by customer cost targets.

• We have strong ethics of open and honest dealings.

• Collaboration with customers in planning common future has a vivid presence.

• Tales of customer “WOW” abound.



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Value Measurement

CustomerCenteredness

PE

RS

ON

AL

IZA

TIO

N

PERFORMANCE

PRICE

Quality

Innovation

Cus

tom

izat

ion

Fair Pric

e

Value Price

Easy Access

Rap

id R

esp

on

seRel

atio

nal

Nurtu

re Company ‘A’



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Valuespace Measurement


PE

RS

ON

AL

IZA

TIO

N

PERFORMANCE

PRICE

Quality

Innovation

Cus

tom

izat

ion

Fair Price:

Target Costing

Value Price:Lean Operations

Easy Access

Rapid Response

Relat

iona

l

Nurtu

re


PE

RS

ON

AL

IZA

TIO

N

PERFORMANCE

PRICE

Quality

InnovationC

usto

miz

atio

n

Fair Pric

e

Value Price

Easy Access

Rap

id R

esp

on

seRel

atio

nal

Nurtu

re

Company ‘A’ Company ‘B’



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Mother Driver

A Culture ofCustomerCenterednes

s

Customer Valuespace

Customer



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Customer Valuespace

Valuespace Master StrategyValuespace Master Strategy NEW VALUE

PROPOSITION• Kodak



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Selling Camera

and films

Helping Customers store, edit, and share memories.

Kodak digital services:

Print;

Email

Store on Web site

Photo-edit

Quantum Leap in Customer Valuespace

Kodak: What business is it in?



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1. Memorize 3P’s and 8 VS Components.1. Memorize 3P’s and 8 VS Components.

2. This 3-8 VS becomes the Touchstone for all Projects (TQM, Reengineering, Technology deployment, program redesign, staffing, new accounting procedures, etc.)

3. Contemplation of Client’s VS and your role in it.-- Cultivate as “Second Nature.”

You and Valuespace --- or

How Can You Practice ValuespaceC

PS

PM

PC

QI

C

FPR

RS

RL

VP

A. Read the Book!



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4. A Program of Valuespace Assessment.



PS

PM

PC

QI

C

FPR

RS

RL

VP

Value Components

Value Drivers

Self-Audit

Customer Survey



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PS

PM

PC

QI

C

FPR

RS

RL

VPValue Components

Value Drivers

Self-Audit

What percent of my customers would agree:

“No other product meets my needs as well as this one (customer)”

“I enjoy dealing with my account manager from this company.”

Be Ruthlessly Honest



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You and Valuespace -- or


PS

PM

PC

QI

C

FPR

RS

RL

VPValue Components

Value Drivers

Self-Audit

SELF-AUDIT.

On a 0-10 scale rate your company:

“Our performance/price ratio has an uptrend.”

“We have strong ethics of open and honest dealings.”

Ruthlessly Honest

Planning



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You and Valuespace


PS

PM

PC

QI

C

FPR

RS

RL

VP

5. Contemplating Client’s Valuespace and Planning Concrete Action Steps;

a. Annual Goals. In What Ways, will we contribute to client’s Valuespace over the next one year?

b. Client Visit Goal. What Value am I bringing to client during my next visit?

“I look forward to a visit from this salesperson/account executive.”

On a Scale of 0-10, current score =6, move to 8.



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Valuespace-- Mother driver – Becoming Customer-Centered

Hangout

with the

Customer

Customer

Image omitted



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You and Valuespace C

PS

PM

PC

QI

C

FPR

RS

RL

VP

Goal:

Over next three months:

On a scale of 0-10, I am going to move myself from 5 to 7 in

how well I understand this customer’s Valuespace—

concerns and hopes in relation to using my product.

Hangout with the Customer

Image omitted



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You and Valuespace CPS

PM

PC

QI

C

FPR

RS

RL

VP

Make your customer your partner in helping you gain “deep customer knowledge.”

Hanging out with the Customer has one problem:

Why should the customer let you hang out?

Hangout with the Customer

Mutual Trust

Image omitted



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You and Valuespace

Executioner of “Client-

projects” or a Sales Account

Management

Resource for Bringing “Deep

Customer Valuespace Knowledge”

Internally to the Organization

Planning

CPS

PM

PC

QI

C

FPR

RS

RL

VP



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Customer Value

It is the be-all And the end-all Of all business activity.

The only purpose Of all organizations. It is the only justifiable goal Of all reengineering, Organizational renewal. Entrepreneurship, And corporate innovation.

And it is the only path For sustained growth, And for winning the battle For market leadership.

-- ValueSpace 2001

www.myValueSpace.com

Customer Loyalty

How do you win it? Business gifts, frequency rewards, Corporate hospitality events— These are mere icing. Customer retention As business model, An unwavering ethic of Non-opportunistic behavior, A human face on customer Interactions, And, most important, A myopic obsession With customer value innovation – On these four pillars Are lasting Customer relationships founded.

-- ValueSpace 2001

www.myValueSpace.com



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Thank you very much.

Your ValueSpace

&

I (ban mittal)

[email protected]

Valuespace – Where Customers and Marketers Meet 11/13/2015 Copyright: 2001-14, Dr. Banwari Mittal, ValueSpace, Inc., Cincinnati, USA. .

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