Strategico’s Strata of Customer Value©
Change has become the only constant of the modern business environment. The ancient Chinese proverb “may you live in interesting times” has never been more prescient and relevant where the customer’s business environment is continuously changing, sometimes to the demise of business-to-business serving organizations.
Organizations require significant effort and investment in market research, travel, and customer relation management (CRM) applications required to monitor the business environment of their served customer segments. The customer’s changing business realities can create risk that their customer’s perception of value received from the organization may decline, Conversely, a changing customer business environment may generates new opportunities to further differentiate their organization’s delivered value by predicting, then adapting to the changes on the customer’s behalf.
Trends in the business environment can come and go as they do within a consumer society. These trends (political, environmental, social, technological, economic and legal) may not have a specific impact upon the targeted customer segments, however, when impact is foreseeable, organizations that communicate potential impact, may generate additional value that sustains customer loyalty, while improving margins, profitability and differentiation.
Unfortunately, business owners often claim their business, industry or sector differs from any other. Whereas many business activities, or combination of activities, may well be unique, the differences pale to the potential arising from generating additional value for their customers. Understanding the impact of these differences and similarities is critical to assessing their current value.