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August 1998 Volume 2.11
Communicating Your
Value Proposition
An e-mail message flashed on my laptop from ABici.
I knew this message was important - Andrea works for
an investment banking firm and does not have a lot of time to reply,
let alone, send e-mails.
She forwarded an e-mail sent from another one of her
busy female friends. The e-mail invited me to join the Gifts
from Delta & American Express for Executive Women Travellers.
These 2 international companies have teamed up to market, enrol
& reward female travellers. This type of Value Added service
is probably the next best thing to a frequent flyer program.
Females who enrol by Sept. 18th receive a free upgrade to first
class, coupons for cheap ($US99) companion fares, retail discounts
and other goodies with 10 other companies. And the cost?
Just your time to call the 0800 number or visit their Website.
(And the registration process is easy.)
What have these international companies done? Simply,
target and communicate their value proposition. They realise
that frequent flyer points are not enough. More importantly,
how was their value proposition communicated? My investment
banker girlfriend received this message from another busy investment
banker who was 1 of 14 e-mailed Then, she e-mailed this to
50 girlfriends! Not only was the power of the Internet untapped,
but it was a quick, efficient way for its customers to communicate
its value proposition.
Susan Moore
Success Through Partnership
8th Customer
Satisfaction Congress,
Fairmont Hotel,
San Francisco
The single biggest change for Scott Panel & Hardware
that drove the company forward has been its focus on Success through
partnership. That was the message that Bob Linton, Scotts’
Managing Director delivered to the 8th Customer Satisfaction Congress.
Bob presented his paper in the famous Vienna Room of San Francisco’s
Fairmont Hotel. This is the same room where the United Nations charter
was signed and where Tony Bennett first sang the song, "I left
my heart in San Francisco". The many business people attending
this American Marketing Association conference appreciated the Scott
story with its emphasis on people, partnering, and comprehensive
measurements across the whole business driving success.
Businesses that successfully focus on the customer
are able to measure their success in dollar terms. For Scott Panel
& Hardware this means jointly setting profitability goals with
their customers. The success of the partnership and business
improvement initiatives can then be tracked against targets over
time.
Scott Panel & Hardware realised that to grow their
business they had to partner with customers. They decided
on a strategy of providing more than product and price, a strategy
that would commit to the success of their customers and work with
their customers to improve. Scotts have a whole host of customer
services including workshops, factory tours, conferences, study
tours, product training, and business management training.
But the heart of Scotts’ Partnering with Customers
initiative is based around the Business Improvement Service that
is made available to target customers. The service provides assistance
across the areas of costing and recoveries, credit control, human
resource management, colour and design consultation, financial management
information, and information technology hardware and software.
With many small business customers they realised that these were
services that small businesses needed but could not afford to provide
themselves. Scotts’ Chief Financial Officer was promoted
to run the Business Improvement Service.
An important point is that Scotts’ customers pay for
these services where they are outsourced. In some cases the
company has assisted their customers arrange loans to cover the
cost of the improvement projects. People value what they pay
for! And with the information from the Customer Value Added
research undertaken by Scotts, they know precisely what their customers
value.
Bob Linton emphasises that it is critical to put as
much emphasis on Partnering with your Colleagues as you do on Partnering
with your Customers. At Scotts this emphasis has been centred on
training and development, reward & recognition, performance
based bonuses, WorkWear, and skills development. An ongoing
colleague survey provides feedback to fine tune and refresh these
initiatives. Performance based remuneration has been introduced
throughout the company.
A recognition programme based on one discovered on
a benchmarking visit to the Milliken textile company in the United
States works successfully. A certificate and a cheque for $75 is
given to colleagues as and when is appropriate with an annual awards
banquet. The outcome of the Partnering with Colleagues has
been development of a ‘Can Do’ environment where the colleagues
play their part in driving the company forward.
The turnaround at Scott Panel & Hardware has been
a success for the owners too, with financial performance indicating
a doubling of revenue with corresponding increases in profit.
Rodger Gallagher
It Gets Talked About
I remember going down to the Harp of Erin shops in
Auckland for my mother to buy our bread. If I was good then
I was given a penny to buy a treat. And what a marvellous
treat the chocolate fish was. This strange New Zealand confectionery
is soft pink marshmallow shaped like a fish then smothered in dark
chocolate. In those days they came loose packed in a
carton on sheets of cardboard. The boxes were on display behind
a glass window in the counter.
Well at Scott Panel & Hardware, chocolate fish
have been given Award status. Whenever the company achieves
a new sales record the M.D. Bob Linton sends every colleague in
the company a chocolate fish. As he says, "It gets
talked about". Its important to remember to have a bit of fun
in business and to celebrate success.
Regards,
Rodger Gallagher
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