CVM Customer Value Management A Presentation CVM Corporate

CVM Customer Value Management A Presentation CVM Corporate Advisors CVM

2 Structure of the Presentation Our Our Our Vision Focus Philosophy “Product” Process CVM Corporate Advisors CVM

3 Our Vision To create success * for our custom ers * market position, profitability and corporate value CVM Corporate Advisors CVM

4 Our Focus The Custom er The Compa ny Success The Comm unity CVM Corporate Advisors CVM

5 Our Philosophy Customers are the very reason why companies exist. Community The digital revolution is profoundly impacting every aspect of doing business. Company All organisations have a hidden human potential which can be unleashed. CVM Corporate Advisors CVM

6 Our Philosophy (cont. ) In order to be successful, all companies must manage well: · It’s heart and soul - which are the people and their attitudes, values and principles. · It’s body and brain - which are the resources and the organisations’ competence and experience. · It’s energy - which is the relationship and interaction with the customers. CVM Corporate Advisors CVM

7 Our Contribution Success Indicators Stronger market position and competitive advantage Increased profits Increased value of the company CVM Corporate Advisors CVM

8 Our Process We work with: we do: C C S C we deliver: we implement: CVRA CVRMP CVRMS A complete Customer Value and Relationship Audit A Customer Value and Relationship Management Program A Customer Value and Relationship Management System With partners Start Check point Delivery CVM Corporate Advisors CVM

9 CVRA - Checklist The Customer Knowledge · Analysis · Understanding · Requirements Customer Communication · Support · Information · Advantages Customer Satisfaction · Measurements · Personalization · Assessment The Company Sales & Marketing · CRM · Branding · Communication The Resource Base · Corporate Value · Profitability · Structure Capital Human Resources · Culture & Values · Hidden Potentials · Performance The Community Trends & Forces · Investments · Systematization · Availability The Digital Revolution · Network Value · New Business Concept · Customer Loyalty The Competition · Hypercompetition · Customer Power · New Competitors CVM Corporate Advisors CVM

10 The Customer Custome r Knowled ge • Analysis • Understa nding • Require ments Custome Commu • Suppo nication rt • Inform ation • Advan r tages The Custom er Custome r Satisfac tion • M easurem ents • Person alization • Assess ment CVM Corporate Advisors CVM

11 The Customer knowledge refers to how effective an organisation is at determining current and potential customer requirements and how well the company understands the relative value that customers place on product/service features. Here a few examples of how this information can be gathered; · · · Interviews with key customers Interviews with lost customers Won/lost analysis · · · Understanding the customers business Study of customers business environment Analysis of competitors activities CVM Corporate Advisors CVM

12 The Customer Communication relates to how effective an organisation is in; · Handling customers inquiries and orders · Providing customers with product and service information · Technical supporting · Utilizing the potentiality in the digital revolution · · Dealing with account queries Dealing with customers complaints · Following up of transactions The more relevant information that can be made available throughout an organisation, the better positioned the organisation is to satisfy their clients and gain a competitive advantage over their competitors. CVM Corporate Advisors CVM

13 The Customer satisfaction is a component that looks at how an organisation determines customers satisfaction or dissatisfaction. The methods used will depend on the customer segment. Customer satisfaction results should be analyzed and acted upon by senior managers in the organisation. This means that the whole process from the company´s suppliers, through the own company and the distribution system, all the way to the end user, must be analyzed. Key accounts should, for instance, be visited personally, in order to assess their satisfaction or dissatisfaction. CVM Corporate Advisors CVM

14 The Company Sales & Marketing · CRM · Brandin g · Outsour cing The Resour ce Base · Corpo rate Va lue · Profit ability · Struc ture Ca pital The Compa ny Human Resourc es · Culture & Values · Hidden potentials · Perform ance CVM Corporate Advisors CVM

15 The Company Sales and Marketing CRM Rapid advances in technology are creating profound business changes in Sales and Marketing functions. Customer Relationship Management (CRM) is the new tool for integration of markets, sales and service, into a platform for enhanced customer collaboration. Key functional areas include; · · Marketing Automation - generating quality leads. Sales Automation - from leads to closing of business. Customer service - resolving customer issues. E-Commerce - handling the transaction on-line. Internet based CRM systems will provide a common platform to deliver applications for use by employees, partners and customers. CVM Corporate Advisors CVM

16 The Company Sales and Marketing The changing role of branding The emergence e-business will change the role and value of traditional brand equity as a mean of retaining and attracting customers. Companies will find that many traditional brand building tools and strategies will decrease in effectiveness or will not simply be transportable to interactive channels. Companies will have to experiment with new branding media, strategies and tactics for creating “virtual branding equity” and they must reallocate a significant portion of traditional brand spending to build loyalty in electronic communities through superior customer care and personalisation technologies. CVM Corporate Advisors CVM

17 The Company Sales and Marketing Outsourcing A clear trend is outsourcing of certain elements of sales and marketing to new type of virtual service companies and utilities that deliver: · Scale infrastructure and technical capacity as; Internet Service Providers (ISP’s), Application Service Providers (Asp’s), Storage Service Providers (SSP’s), Hosting, Transaction Engines and Web Ad Serving. · Specialised expertise in e. g. Internet Ad design, Web integration E-commerce strategy and Channel intermediates. Outsourcing of sales and marketing functions will be essential in developing an adaptive marketing cost structure that enables state of the art capacity in core strategic areas. CVM Corporate Advisors CVM

18 The Company Human Resources Culture and Values Most organisations that have been around for some time has a culture that, if not subscribe by all, usually is understood as “The way we do things here”. These values actually practiced by the people is the clearest expression of the real culture within the organisation. It is vital do define a clear set of professional culture values to guide management behavior and business relations at all levels. Examples of such expressed values are; · We are all in this together-company-suppliers-customers. · Open and honest communication is essential for us. · Everyone shall have access to all information on all operations. · We focus on processes and not on individual work. · There are no success or failure, just learning experiences. CVM Corporate Advisors CVM

19 The Company Human resources The Hidden Potentials Every organisation has a hidden human potential. A successful opening and management of this potential will in the end create increased value in the company itself and for its customers. The basics for the development of an organisations human potential is to have; · the right people · working in the right environment · focusing on the right objectives. And the management must have; · a shared vision · complementary skills · mutual trust and respect CVM Corporate Advisors CVM

20 The Company Human resources Performance A company must regularly conduct surveys designed to measure how well the people are doing in supporting the principal of values, through interaction within the organisation and with people outside the company. Human resources management should also be used in the context of concrete actions such as; · Reducing personnel costs by lowering of absence, recruitment costs and staff turnover. · Improving performance and productivity by increasing skills, motivation and moral. · Improving the effectiveness of human resource administration through increased efficiency, faster response, more accurate reporting and focused management. · Investing in knowledge creation and development. CVM Corporate Advisors CVM

21 The Community Trends & Forces · Investm ents · Systema tization · Availab ility The Digital Revolu tion · Netw ork val ue · New busines s conce · Custo pt mer loy alty The Comm unity The Competi tion · Hyperco mpetition · Custom er Power · New Co mpetitors CVM Corporate Advisors CVM

22 The Community Trends & Forces Trends and driving forces in a market or a branch are increasing in complexity and becomes more and more difficult to foresee and anticipate. It is therefor crucial for a company to systemise and invest in its “environment custody”. Here a few examples of important topics to follow and analyse; · · · Public opinions Political changes and legislation's Environmental issues and restrains Innovations and technological break-through´s Shifts in capital and investment flows Mergers and acquisitions CVM Corporate Advisors CVM

23 The Community The Digital Revolution The digital revolution is changing the logic in most aspects of business. The digitalization of products and services creates new opportunities and challenges for all companies. Basically there are three areas to analyze carefully: · · · The potential for increasing value for the customer at a low cost. The potential to create a continues income. The potential to build close customer relation - one-to-one marketing. An increasing larger part of the economy is becoming less physical and more immaterial (digital). With the clear distinction between what can be delivered digitally and what must be delivered physically. In the digital world the value chain is no longer a chain but a network where values move around in all directions and where the final customer, as well, participates in the value exchange. CVM Corporate Advisors CVM

24 The Community Competition New competition will arise from companies changing their business structure or moving into a new branch. Key questions · Who are my competitors today? · From where is new competition emerging? The competition becomes an hypercompetition when customers can compare products and services easily and objectively. Computer power, unlimited communication capacity, portals, search-engines, etc. creates an eldorado of comparisons. The enormous quantity of information that will be available in the digital global marketplace will make gathering, processing and presentation of information to a new business. The fierce competition makes it absolutely necessary to submit added value to the customer and thereby creating a possibility to get higher prices. CVM Corporate Advisors CVM

25 Our working principals 1 We start when we have agreed on a workplan and our client say OK. Let´s go! 2 We work with our client and involve the people in the company. 3 We keep a complete openness in the relation with our client. CVM Corporate Advisors CVM

26 What is our competitive strength? 1 Experience. The partners have 100 years of combined experience from many branches and stand with “one leg” in both the old and the new economy. 2 Knowledge. The partners have combined 50 years in management consulting business and have worked with all kinds of consulting techniques. 3 Fantasy. The partners are creative persons with sensitive ears and with curiosity and enthusiasm as a part of their personalities. 4 Focus We focus on “the moment of truth”. What is the product, who is the customer and where is the money? CVM Corporate Advisors CVM