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Competing through customer intimacy
                       What does it mean? What does it take?
                       Prof. dr. Kurt Verweire
Flanders DC Kenniscentrum
Flanders DC - Missie




       Ondernemend Vlaanderen         Creatief Vlaanderen
          Creatiever maken           Ondernemender maken



Flanders DC Kenniscentrum
Flanders DC – Bedrijven




Flanders DC Kenniscentrum
Flanders DC – Onderwijs




            4
Flanders DC Kenniscentrum
Flanders DC – Algemeen Publiek




            5
Flanders DC Kenniscentrum
Competing Through Customer Intimacy: Agenda

                                                 A remarkable case study
                                                 The choices of customer-intimacy firms
                                                 Strategy implementation at customer-
                                                  intimacy firms




6|   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
A Case Study: Châteauform’

      A unique concept of venues totally dedicated to meetings and
       seminars
      In various European countries
      Sites are castles, big farms, big houses
      “Feel at home, far from home”




7|   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
A Case Study: Châteauform’




8|   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Competing Through Customer Intimacy




9|   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Developing a winning strategy


                Whom do we                             What do we
                                                                                      ‘Competitive arena’
                  serve?                                provide?




                 What is our                            What is our
                    value                               operating                     ‘Competitive theme’
                 proposition?                            model?



                                          Clear choices + unique choices!

10 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Châteauform’s winning strategy

        Big multinational companies
        To meet their needs in terms of meetings, seminars, events
        Special attenttion to the wishes of the different sub-segments
                      Participants: “Feel at home far from home”
                      Assistants: Easy to do business with and total care
                      Decision makers: All inclusive, no surprises
                      Facilitators: High tech, high touch, no stress
        Unique in what it does: Less costs and higher customer
         satisfaction


                                                                                      •   95-100% client satisfaction
                                                                                      •   Customer delights


11 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Châteauform’s winning value proposition

        The five attributes of all
         commercial transactions:
                  Product: Goods and/or services purchased
                  Price: Cost of goods and/or services
                  Access: How easy consumers obtain and
                   use goods
                  Service: What is done extra before,
                   during, and after the sale
                  Experience (connectivity): How consumers
                   feel about themselves as a result of goods
                   and/or services


                                   Consumer relevancy                                 Source: Crawford & Mathews (2001)

                                       framework


12 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Châteauform’s winning value proposition
         Level                     Access                   Experience                       Price                 Product               Service
         Consumer seeks            Turn my hassle           Establish intimacy               Be my price agent;    Inspire me with an    Provide me with a
         the company               into a positive          with me by doing                 let me trust you to   assortment of         solution, take my
                                   experience.              something no one                 make my               excellent products    problems away.
               
                                                            else can.                        purchases.            I didn’t know
                                                                                                                   about.
         Consumer                  Make the whole           Care about my                    Be fair and           Offer continuously    Educate me when I
         prefers the               interaction reliable     needs and me.                    consistent in your    high-quality and      encounter a
                                   and convenient for                                        low pricing (this     well-performing       product or a
         company
                                   me.                                                       does not              products.             situation I don’t
                                                                                            necessarily mean                            understand.
                                                                                             lowest price).
         Consumer                  Make it easy for         Respect me, treat                Keep the prices       Be credible in your   Accommodate me;
         accepts the               me to find what I        me like a human                  honest; don’t jack    product and           bend over
                                   need.                    being.                           them up or offer      service offerings.    backward some-
         company
                                                                                             big savings when                            times to show me
                                                                                            there are none.                             you care.
         Consumer                  Block my way,            Dehumanize me;                   Be inconsistent,      Offer me poor-        Give me an
         underworld                hassle me, keep          disrespect me;                   unclear, or           quality               experience I’d just
                                   me waiting, make         ignore my needs.                 misleading in your    merchandise and       as soon forget;
               
                                   it hard for me to                                         pricing.              services that I       give me a reason
                                  get in and out.                                                                 can’t use.            to tell my friends
                                                                                                                                         to stay away.



13 |   Flanders DC Kenniscentrum         27-2-2013|    Competing Through Customer Intimacy
Châteauform’s winning strategy




14 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Châteauform’s winning operating model




15 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Successful strategy implementation




                                                                                      Source: Vlerick Business School & GDF Suez (Electrabel) (2004)



16 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Flanders DC Kenniscentrum

                            17
Flanders DC Kenniscentrum School
          © Vlerick Business

                                   18
Flanders DC Kenniscentrum

                            19
Successful strategy implementation




20 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy
Conclusion




21 |   Flanders DC Kenniscentrum   27-2-2013|   Competing Through Customer Intimacy

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Competing through customer intimacy by kurt verweire

  • 1. Competing through customer intimacy What does it mean? What does it take? Prof. dr. Kurt Verweire Flanders DC Kenniscentrum
  • 2. Flanders DC - Missie Ondernemend Vlaanderen Creatief Vlaanderen Creatiever maken Ondernemender maken Flanders DC Kenniscentrum
  • 3. Flanders DC – Bedrijven Flanders DC Kenniscentrum
  • 4. Flanders DC – Onderwijs 4 Flanders DC Kenniscentrum
  • 5. Flanders DC – Algemeen Publiek 5 Flanders DC Kenniscentrum
  • 6. Competing Through Customer Intimacy: Agenda  A remarkable case study  The choices of customer-intimacy firms  Strategy implementation at customer- intimacy firms 6| Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 7. A Case Study: Châteauform’  A unique concept of venues totally dedicated to meetings and seminars  In various European countries  Sites are castles, big farms, big houses  “Feel at home, far from home” 7| Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 8. A Case Study: Châteauform’ 8| Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 9. Competing Through Customer Intimacy 9| Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 10. Developing a winning strategy Whom do we What do we ‘Competitive arena’ serve? provide? What is our What is our value operating ‘Competitive theme’ proposition? model? Clear choices + unique choices! 10 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 11. Châteauform’s winning strategy  Big multinational companies  To meet their needs in terms of meetings, seminars, events  Special attenttion to the wishes of the different sub-segments  Participants: “Feel at home far from home”  Assistants: Easy to do business with and total care  Decision makers: All inclusive, no surprises  Facilitators: High tech, high touch, no stress  Unique in what it does: Less costs and higher customer satisfaction • 95-100% client satisfaction • Customer delights 11 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 12. Châteauform’s winning value proposition  The five attributes of all commercial transactions:  Product: Goods and/or services purchased  Price: Cost of goods and/or services  Access: How easy consumers obtain and use goods  Service: What is done extra before, during, and after the sale  Experience (connectivity): How consumers feel about themselves as a result of goods and/or services Consumer relevancy Source: Crawford & Mathews (2001) framework 12 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 13. Châteauform’s winning value proposition Level Access Experience Price Product Service Consumer seeks Turn my hassle Establish intimacy Be my price agent; Inspire me with an Provide me with a the company into a positive with me by doing let me trust you to assortment of solution, take my experience. something no one make my excellent products problems away.  else can. purchases. I didn’t know about. Consumer Make the whole Care about my Be fair and Offer continuously Educate me when I prefers the interaction reliable needs and me. consistent in your high-quality and encounter a and convenient for low pricing (this well-performing product or a company me. does not products. situation I don’t  necessarily mean understand. lowest price). Consumer Make it easy for Respect me, treat Keep the prices Be credible in your Accommodate me; accepts the me to find what I me like a human honest; don’t jack product and bend over need. being. them up or offer service offerings. backward some- company big savings when times to show me  there are none. you care. Consumer Block my way, Dehumanize me; Be inconsistent, Offer me poor- Give me an underworld hassle me, keep disrespect me; unclear, or quality experience I’d just me waiting, make ignore my needs. misleading in your merchandise and as soon forget;  it hard for me to pricing. services that I give me a reason  get in and out. can’t use. to tell my friends to stay away. 13 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 14. Châteauform’s winning strategy 14 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 15. Châteauform’s winning operating model 15 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 16. Successful strategy implementation Source: Vlerick Business School & GDF Suez (Electrabel) (2004) 16 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 18. Flanders DC Kenniscentrum School © Vlerick Business 18
  • 20. Successful strategy implementation 20 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy
  • 21. Conclusion 21 | Flanders DC Kenniscentrum 27-2-2013| Competing Through Customer Intimacy