Customer Value

Traditional profitability models have tended to focus inwardly on the product related aspects of value - pricing, product mix & configuration, sales volumes, the size and value of transactions, and so on.

However the aggregate value of a customer is also determined by the more outward looking relationship dimension. This drives the business economics significantly: costs for acquisition and servicing, longevity / reduction in churn, and infrastructure costs associated with the different channels of managing the customer relationship

Excellent customer service delivers mutual benefits to customer and company alike, driving a virtuous circle of customer experience.  The better the value and experience, the more customers and transactions leading to greater revenue/profits, allowing more investment in a better experience, and so on. In the technology context, customer experience is driven by a number of factors, amongst these being:

  • Reliability, which promotes trust;
  • Availability, when customers want it;
  • Usability, to make it easier;
  • Scalable, so the system never runs out of steam.

However, it is important to consider not just the technology, but the totality of the customer's experience of general interactions with the business. Whilst reliability and availability are important, the total customer experience is tied directly to the perceived “service”, that is, the unified interaction of many components (people, processes, software, hardware, networks, and so on) to deliver a complete transaction to a customer.

From a pure technology perspective, customer centricity requires a highly functional and rich architecture, capable of processing and presenting customer data in many ways, supporting front-line people in the delivery of customer service, and built on an infrastructure where performance and availability are aligned across all the systems components so eliminating “weak points” or bottlenecks, with frictionless, joined up processes.

Sixhills has a wide range of experience in the design of business architectures (strategy, structure, style/culture, systems & processes, people/skills) to help clients deliver excellent customer experience, together with a deep understanding of the rigorous analytics that support the generation of customer value