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Talk session for SPIN Chennai (Software Process Improvement Network) September 10, 2009

Mumbai +91 (22) 2407-8970. Bangalore +91 (80) 2520-1398. Chennai +91 (44) 2834-1719. Delhi +91 (11) 2643-0386. Gauging Customer Pulse for Business Growth: The case for focusing on Customer ‘Disposition’ in IT services firms.

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Talk session for SPIN Chennai (Software Process Improvement Network) September 10, 2009

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  1. Mumbai +91 (22) 2407-8970 Bangalore +91 (80) 2520-1398 Chennai +91 (44) 2834-1719 Delhi +91 (11) 2643-0386 Gauging Customer Pulse for Business Growth: The case for focusing on Customer ‘Disposition’ in IT services firms Talk session for SPIN Chennai (Software Process Improvement Network) September 10, 2009 Chandramouli Srinivasan; chandramouli@feedbackconsulting.com; +91 98451 19965 FEEDBACK BUSINESS CONSULTING SERVICES PVT. LTD.

  2. What are the business concerns at firms related to clients? Customer Challenges Impact on Business Retain Clients Growth – Repeat Business Grow the Account • Unlock Customer Value • Cross selling • Improve Top & Bottom line • Gross margins • Build Stability Improve Profitability Reduce Volatility Good Reference New Customers – New Business

  3. Survey is a good approach to gauge customer opinion. Some questions to keep in mind while we plan the process

  4. Some experiences…

  5. Some experiences…

  6. Some experiences…

  7. i. Building & Sustaining Favorable Customer Disposition has served IT services firms well CONTINUOUS & FOCUSSED ACTION POSITIONING • Firm * • Division • Account • Customer (Individual) • Up the Value Chain • Repeat Business • Better Top and Bottom Line • Expanded Footprint • Customers as Ambassadors DELIVER ON THE PROMISE • Firm and Division refer to the IT Service provider • Account refers to the Service provider’s client’s organisation; Customer is the individual across levels who receive the Firm’s service

  8. Good Connect • Win-Win situation ii. Experiences, Connections, Perceptions and Attitudes towards the service drive Customer Disposition Customer Connections Customer Experiences Delight Happy Met Expectations First Experience Project Management Peer Talk ... ... Kept Promises Reuse Escalations Estimation SLA / KPI Con calls Status Reports Schedule Variance Unhappy Email Relationship Management Miserable • Wrong Number • Solution did not help • Low Charge • Neglect the customer • Busy Tone • Not Critical to business • Switched Off • Missed meetings • Dropped Call • Lose track of Customer • Weak Signal • Performance below par • No Call back • No CXO traction Speaking up Point of View Attitudes to Sourcing Perceptions

  9. iii. We have found it useful to classify customers based on their responses to key business outcomes Key Outcomes Breakaway Core Moderate “Satisfaction” with Firm Satisfaction + Loyalty + Advocacy + Value for money Experience Index % All parameters shown are purely illustrative

  10. iv. Attitudes toward outsourcing along with Customer Experience allows the firm to take specific actions Reluctant Perceived Loss of Control + Hand Holding + Risks Manageable Apprehensions about Outsourcing Desirable 3 cluster solution based on attitude towards using External Service Providers 3 cluster solution based on experience with Firm

  11. v. Customers slot Service Providers. A firm needs to find innovative ways to determine its positioning Firms are obsessed with what they do. It is imperative to measure business value delivered in addition to measuring service delivery Firm Better Competition/In House Better The Firm In-House Best of Breed Firm Competition No Opinion All parameters shown are purely illustrative * Illustrative

  12. vi. Value proposition through business outcomes Scalability • Ramp resources as per requirement Costs • Lowered offshore costs • Reduced total cost of ownership • Efficiency • Productivity • Customer service • Best practices Operational improvements • Statutory compliance • Decision making • Business transformation MIS Market focus • Time to market • Competitiveness Determining the key drivers of value perceptions based on correlations with Value for Money * Business benefits delivered by the service provider are indicative

  13. vii. Tracking what is important to the Customer provides valuable insights about where the Firm should concentrate OUTSOURCING P E O P L E S T R U C T U R E POSITIONING SUSTAIN HARVEST DELIVER ON THE POSITIONING Satisfaction ratings TACTICAL ACTIONS CREATE DIFFERENTIATION The Firm can overlay Account profitability on Customer experience and Attitudes to outsourcing for deciding on Account strategy Corporate level Account level Unit level Relative impact on Value to Customer • Deliver on the positioning • Demonstrate Return on Investment • Distinctiveness • Breakaway • Lose Sleep • Low scores • Key drivers of Value TRACK SOS GOVERNANCE CUSTOMER DASHBOARD All parameters shown are purely illustrative

  14. Some results that emerged through our Customer Disposition framework over the last decade • Highlighted that soft skills could be a key differentiator. Learning and development department instituted • The case for the engagement manager. Assess capabilities for client facing roles before deployment • Transition issues given people attrition, transfers was causing concern. Out of box ideas provided on seamless knowledge transfer • Techies low on business savvy and cultural sensitivity. Sales low on technical appreciation. Suggested using technology innovatively to address the issue • Classifying target individuals in client organizations - those needing relationship nurturing to accounts at risk. Some have gone on to become multi million dollar clients • One face of the organization. A challenge in most firms as they grow

  15. Thank you

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