Joe Dager – Business901

R. Eric Reidenbach

Six Sigma Marketing Institute

Customer Identification

Customer Value

Customer Acquisition

Customer Retention

Customer Monitoring

Current State

Metrics Value

Stream Future State

Kaizen

Identify Value Retain Acquire Monitor

Customer Monitoring (Control) Value Proposition Transactional

Customer Retention (Implement) Loyalty Value Model Loyalty Matrix

Customer Acquisition (Analyze) Competitive Value Matrix Competitive Value Model

Customer Value (Measure) Value Model

Customer Identification (Define) Product Market Matrix Market Opportunity Matrix

Lean Thinking

• Identify Value

• Map Value Stream

• Create Flow

• Establish Pull

• Seek Perfection

What a Customer

will

pay for!

goods dominant logic

• Assumes Better, Faster, Cheaper wins

• Limits mind-set for co-creation opportunities

• Transactional exchange struggles w loyalty

• Constraints on developing lifetime value

My Last Mention of

Inside – Out Thinking

Where Does Demand come from?

1. Make it Magnetic

2. Fix the Hassle Map

3. Build a Complete Backstory

4. Find the Triggers

5. Build a Steep Trajectory

6. De-Average

Demand: Creating What People Love Before They Know They Want It by Adrian Slywotzky

Where Does Demand come from?

1. Make it Magnetic: It’s not the first mover that wins; it’s the first to create and capture

the emotional space in the market.

2. Fix the Hassle Map: Map the hassles and fix them. This will provide a path to

explosive potential demand.

3. Build a Complete Backstory: Till this in place and all the dots connected in the

hassle map, demand simple does not happen.

4. Find the Triggers: Always experiment, search to turn fence sitters into customers.

5. Build a Steep Trajectory: Continuously innovate.

6. De-Average: Constantly improve product fit for varying customers.

Demand: Creating What People Love Before They Know They Want It by Adrian Slywotzky

Demand side Thinking

Fleetguard developed a decisive competitive edge through

its guarantee of availability.

Drive by empty Coffee Shops and you see lines at

Starbucks.

The release of new iPhone: Store manager told me that

they were fully staffed and everyone had to come in at 7AM.

Xerox uses Lean Six Sigma to assist in-house printers to

create better internal efficiencies..

It is not about the things we make

it how we use the things we make

It is not about the things we make

it is About how our customer use the things we make

Service dominant logic

Service Dominant Logic The Service-Dominant Logic of Marketing edited by Robert Lusch and Stephen Vargo

1. Service is exchanged for service.

2. Indirect exchange masks the fundamental unit of exchange

3. Goods are distribution mechanisms for service provision

4. Knowledge is the fundamental source of competitive advantage

5. All economies are services economies

6. The customer is always a co-creator of value

7. Value is always determined by the customer (value-in-use)

8. A service-centered view is customer oriented and relational

Value is Derived thru USe

Functional Emotional Social

Forrester predicts that by 2012 half of all consumer purchases will either be transacted online or

driven by online research and word of mouth. To succeed in the digital marketplace, it’s no

longer customers that matter most, but users—anyone who interacts with your company digitally.

Keep users happy, and customers follow.

Value is Derived thru USe

Functional: It gets me there

Emotional: It makes me feel good

Social: It is what others think

Today’s most successful companies organize their business

around users and building user satisfaction,”

writes Aaron Shapiro CEO of digital agency HUGE in his book

Users, Not Customers: Who Really Determines the Success of Your Business.

usability excellence

It is not about the things we make

it is About how our customer use the things we make

Service dominant logic

• Lean

• Collaboration

• Co-Creation

• SD -Logic

• Value–in–Use

• Gamification

• Service Design

• Design Thinking

What would happen if your

product or service was free? It can be commoditized

How would you make

money? Where would your demand come from?

Handout