Value Chain Strategies Unleashing Organizational Sales Potential WILSON OYLER GROUP ASSESSMENT. STRATEGIES. SOLUTIONS Presented by Thomas L. Oyler Marketing and Customer Management Processes of the Future Value Chain Strategies Marketing and Customer Management Processes of the Future INTRODUCTION To Unleash Organizational Sales Potential your Company must realize the importance of knowing and understanding your client’s needs. In the past, top-tier landscape contractors had their way in their markets. Due to the rapid maturation of our industry, more and more companies are competing for the same customer’s dollar. This intense competitive dynamic has led to ever-increasing price and loyalty pressure. The tried and true process of “high touch” customer management is now being challenged. This presentation will explore the marketing and customer management processes of the future. Value Chain Strategies Facts To Consider The industry is rapidly maturing & in mature industries all top tier companies look very much alike to the consumer/end user. Value Chain Strategies Facts To Consider Many if not most of the top tier companies sell and market very similarly. Marketing Tools Value Chain Strategies Facts To Consider Commoditization begins when Consumer Choices consumers have multiple product/service choices competently delivered by top tier companies. Value Chain Strategies Facts To Consider Many companies in the Landscape trades use comparative examples (comparing themselves to the competitor) in an attempt to distinguish themselves. This strategy is a lead indicator of commoditization, i.e. consumer products. Value Chain Strategies Facts To Consider Studies show that most Organizations spend 7-10X more time analyzing financial and operational performance, than they spend analyzing and understanding their customer’s business model. (Spend more time on internal issues than external issues) Value Chain Strategies Facts To Consider All industries have destructive habits. Determining, analyzing, & overcoming destructive habits leads to market leadership/ dominance. Value Chain Strategies Facts To Consider Many/most companies in the landscape trades rely on relationships rather than Innovation to gain and retain customers. Value Chain Strategies Facts To Consider The Relationship sales model have been known to struggle/fail. (Sears Model) Value Chain Strategies Facts To Consider Research has confirmed that the most successful service sector companies build aggressive marketing platforms and are ‘Total Sales Organizations’ (Landstar Model) Value Chain Strategies SOLUTION – Become A Value Innovator and A Total Sales Organization Value Chain Strategies The Rules – The Total Sales Organization The Entire Organization Must be Unified Around a Simple Market Message and Market Identity Build the Story Line Dialogue at all levels of the organization Embed the Story Line at every level of the organization Create organizational alignment – align customer wants and your business objectives Consistent execution of the message (high touch), with consistent execution of service delivery (competency trust) Value Chain Strategies The Rules – The Total Sales Organization Each and Every Employee Must be Empowered to Represent the Company From the Sales Perspective Starts with social architecture Education – pricing strategies, service scheduling, service offerings, dispute resolution, customer profiles and lessons learned Challenge assumptions Create a vision – Long Range Planning. Constantly reaffirm the vision Value Chain Strategies The Rules – The Total Sales Organization The Organization Must Deliver on Each and Every Commitment and Promise Made by the Organizations Sales Representatives (everyone) Consistent delivery of core competencies Extremely high touch (low touch can be high touch) Constantly reaffirm value Absolutely no surprises Speed Kills (the competitor) Keep is Easy, Keep it simple Organizational Reflection Value Chain Strategies The Rules – The Total Sales Organization The Organization Must Build All of Its Operational, Sales, Financial, and Social Tools and Architecture Around the Customer, Starting with the Customer and Moving Back Understanding the Market Demand Chain Understand the Customers Value Chain Protect – Be the 3rd eye/cover the Customers ‘6’ Mutually Beneficial, Empathetically Engineered Relationships Networking & Economic Ecosystem (Home Field Advantage) External Focus Exceed Expectations – (WWII) Broaden the Vision – Internally & Externally Value Chain Strategies The Rules – The Value Innovators The Organization Must Become a ‘Low Cost Service Provider’ Eliminate Waste – No Dumb Taxes Treat the Customers $ Like it is your Own No Surprises Financial Rewards for All Parties Exceptional Value for the Customer ‘Low Cost does not Mean the Lowest Price Lower Cost means ‘Total/All-in Cost & Value of Products and Services’ Low Cost Service Providers Understand the Power of Leverage Value Chain Strategies The Rules – The Value Innovators To Become a Value Innovator an Organization Must Aim for Leap Frog Advantages Question everything your Industry is doing Examine everything your customer is doing Understand the Industry you are really in Learn about the Industry you are really in Modify/Change Organizational Vocabulary Avoid Urgency Addiction – Strategically Plan & Reflect Break the Grip of competitive imitation & pursuit Develop an ‘Up or Out’ Culture DO NOT GIVE UP Value Chain Strategies The Rules – The Value Innovators Value Innovators Place the Customer at the Center of Their Strategic Thinking, Planning and Actions Do not Invest in Anything the Customer is not willing to pay for Develop Customer Value Chains for every customer segment they serve and service Become Strategically Relevant to the Customers Business (move up the value chain) Develop Strategies that anticipate ‘Key Driver & Key Restrictors to your Customers Business and Thiers (no surprises) Develop Marketing & Sales ‘Networking’ Strategies that drives your Customers Business and thiers. Relentlessly pursue new innovations (no sacred cows found here) Value Chain Strategies Marketing and Customer Management Processes of the Future What the Customer Thinks of When They Wake up DEVELOPER Site Selection Financing Marketing (Sales/Leasing) Site Development Vertical Construction Horizontal Construction REAL ESTATE INVESTMENT TRUST (Private Equity) Location-Location-Location ROIC Acquisitions Management Maintenance (Landscaping) Management REAL ESTATE INVESTMENT TRUST (Public Equity) Share Price Share Volume Property Value (Resale) Location-Location-Location Management Maintenance Maintenance (Landscape) MAINTENANCE Cost (prices paid for services) Control Date/Knowledge(tracking and trending) OBJECTIVE: MOVE UP THE VALUE CHAIN/BECOME STRATEGICALLY RELEVANT Value Chain Strategies Economic Facts to Consider 86% 0f All New Business Launches are ‘Line Extensions’ (me too products that are result of competitive improvements and/or countermeasures to recent moves of the competition) These business launches account for only 62% of that lines sales These business launches account for only 39% of the profits The remaining 14% of the business launches (the value innovators) attribute 38% of the revenue and 62% of the lines profits* (determined in a US bases study by Kim Consulting & Instead International Management School) Value Chain Strategies Unleashing Organizational Sales Potential Questions? Contact 866.517.2272 Thomas L. Oyler toyler@wilson-oyler.com Marketing and Customer Management Processes of the Future