IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Write back to Jack & Suzy Welch at editor@businessandeconomy.org
Que: In your opinion, what big business imperative doesn’t get enough attention? (Pedro Cezar Dantas Neto, Brazil) Ans: Stickiness. Of all the business ideas in the “debate-o-sphere” – and stickiness has been out there for years now, known by many names including “customer retention” and “loyalty” – it still doesn’t obsess managers nearly as much as it should. Because stickiness can change the game: It transforms business from a transaction-based model to a more lasting, mutually beneficial one, in which companies improve their own revenues and margins by improving their customers’ competitiveness. Indeed, the only trouble is it can be so hard to create. But still, allow us to suggest a few proven ways to go at it.
The first, perhaps not surprisingly, is good old-fashioned service, which needs to stand out. Take Mitchell’s, the Connecticut-based clothing chain. It’s managed to outperform its competition in the tough suburban New York market by treating its customers not only like royalty, but also as unique individuals, offering personal productivity “enhancements” with conveniences such as same-day tailoring and home delivery. On a much larger scale, The Four Seasons also wins hearts and wallets in the crowded luxury hotel market by invariably delivering high-quality, seamless experiences. For manufacturing companies, customer service is critical, but another approach to stickiness requires moving from a product-focused business to a product-and-long-term-service business by guaranteeing productivity gains to customers. Now remember, most engineers want to build new machines; the faster and more powerful, the better. With this model, you’re asking your engineers to focus on continuous technology upgrades to meet commitments that got you the sale, and you’re betting they’re talented enough to design and deliver those upgrades in a way that can guarantee productivity increases over many years. That’s a big wager, but if you’re right, it’s a huge win for everyone at the table.
Another option open to manufacturing companies, particularly in commodity businesses, is to use your strong balance sheet to take a major outlay of capital off of a customer’s balance sheet. Specialty industrial gas companies win long-term contracts, for instance, by building their plants next door to customers’ factories, providing over-the-fence, competitively priced raw materials without hassles of hazardous delivery. Similarly, some plastic manufacturers build on-site silos for customers, essentially guaranteeing an ever-present, cost-competitive supply.
Almost all companies can create stickiness by sharing know-how. You can welcome customers into your R&D facilities with a “my lab is your lab” mind-set, share new designs for packaging or demonstrate exciting products coming down the road. If your expertise happens to be HR, you can train your customers’ managers in hiring, coaching, evaluation et al. Many companies that are advanced with lean Six Sigma, for instance, send their “Black Belts” into customer organisations to launch training programmes.
Finally, businesses can create stickiness by building user communities. Every year in cities around the world, for instance, SAP hosts conferences where customers can meet IT experts, software developers and – most importantly – each other, to share SAP best practices. These are not sales events per se, but you can be sure that attendees leave with a feeling of partnership with SAP that has to be a big part of the company’s steady share gains.
We’re not inventing gravity here: We know that in most companies, all or some of these approaches to stickiness have gotten lip service. But too often that’s all they get. The truth is that any one of these approaches involves a major culture and mind-set change, with a management commitment of time and money, and the acceptance of some level of risk. Basically, the organisation must come to see the world through the customers’ eyes. Otherwise, unlike gravity, stickiness just won’t happen.
Jack Welch & Suzy Welch
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
Write back to Jack & Suzy Welch at editor@businessandeconomy.org
Que: In your opinion, what big business imperative doesn’t get enough attention? (Pedro Cezar Dantas Neto, Brazil) Ans: Stickiness. Of all the business ideas in the “debate-o-sphere” – and stickiness has been out there for years now, known by many names including “customer retention” and “loyalty” – it still doesn’t obsess managers nearly as much as it should. Because stickiness can change the game: It transforms business from a transaction-based model to a more lasting, mutually beneficial one, in which companies improve their own revenues and margins by improving their customers’ competitiveness. Indeed, the only trouble is it can be so hard to create. But still, allow us to suggest a few proven ways to go at it.The first, perhaps not surprisingly, is good old-fashioned service, which needs to stand out. Take Mitchell’s, the Connecticut-based clothing chain. It’s managed to outperform its competition in the tough suburban New York market by treating its customers not only like royalty, but also as unique individuals, offering personal productivity “enhancements” with conveniences such as same-day tailoring and home delivery. On a much larger scale, The Four Seasons also wins hearts and wallets in the crowded luxury hotel market by invariably delivering high-quality, seamless experiences. For manufacturing companies, customer service is critical, but another approach to stickiness requires moving from a product-focused business to a product-and-long-term-service business by guaranteeing productivity gains to customers. Now remember, most engineers want to build new machines; the faster and more powerful, the better. With this model, you’re asking your engineers to focus on continuous technology upgrades to meet commitments that got you the sale, and you’re betting they’re talented enough to design and deliver those upgrades in a way that can guarantee productivity increases over many years. That’s a big wager, but if you’re right, it’s a huge win for everyone at the table.
Another option open to manufacturing companies, particularly in commodity businesses, is to use your strong balance sheet to take a major outlay of capital off of a customer’s balance sheet. Specialty industrial gas companies win long-term contracts, for instance, by building their plants next door to customers’ factories, providing over-the-fence, competitively priced raw materials without hassles of hazardous delivery. Similarly, some plastic manufacturers build on-site silos for customers, essentially guaranteeing an ever-present, cost-competitive supply.
Almost all companies can create stickiness by sharing know-how. You can welcome customers into your R&D facilities with a “my lab is your lab” mind-set, share new designs for packaging or demonstrate exciting products coming down the road. If your expertise happens to be HR, you can train your customers’ managers in hiring, coaching, evaluation et al. Many companies that are advanced with lean Six Sigma, for instance, send their “Black Belts” into customer organisations to launch training programmes.
Finally, businesses can create stickiness by building user communities. Every year in cities around the world, for instance, SAP hosts conferences where customers can meet IT experts, software developers and – most importantly – each other, to share SAP best practices. These are not sales events per se, but you can be sure that attendees leave with a feeling of partnership with SAP that has to be a big part of the company’s steady share gains.
We’re not inventing gravity here: We know that in most companies, all or some of these approaches to stickiness have gotten lip service. But too often that’s all they get. The truth is that any one of these approaches involves a major culture and mind-set change, with a management commitment of time and money, and the acceptance of some level of risk. Basically, the organisation must come to see the world through the customers’ eyes. Otherwise, unlike gravity, stickiness just won’t happen.
Jack Welch & Suzy Welch
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
