ANDREAS MUNZEL

CUSTOMER CENTRICITY SIMULATION INTRODUCTION

HBP Product No. WH0008

CUSTOMER CENTRICITY

Learning Objectives

• Effectively shift from product-centric business model to benefit the bottom line.

• Harness CRM and data analytics in service of initiating effective customer centricity

• Identify most valuable customers, maximize CLV; find /attract similar new customers.

• Relationship between market valuation and customer equity

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THAT’S YOUR TASK IN THIS MARKETING

SIMULATION!

HOW DO WE IMPLEMENT IT?

‣ It is not about putting the product (or related technologies) first

‣ It is not about treating all customers equally in order to drive volume (and lower costs)

‣ Understanding that some customers are more valuable than others

‣ Building a growth strategy around these customers

‣ Enhancing their value, extracting some of it, and acquiring more customers like them

WHAT IS CUSTOMER CENTRICITY?

A Quick Reminder

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FIRST, WHAT IT IS NOT

WHAT CUSTOMER CENTRICITY IS

WHAT WILL YOU LEARN?

Customer Centricity in Action!

• Understand the relationship between CLV and overall enterprise value (via “customer equity”)

• How to identify potentially high-value customers

• Taking action to attract these valuable customers, and constantly learning how to do so more effectively

• Increase the retention and “development” of high-value customers while ensuring that benefits > costs of doing so

• Gain perspectives on the role of branding in a customer-centric organization

• Practice speaking the language of customer centricity. Learn more about new KPIs, decisions, org structures, etc., associated with it

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WELCOME TO HARTNOW!

CONTEXT

Your Company, Hartnow Technologies

• Hartnow manufactures 3D printers

• The company is 5 years old

• Revenue model is leasing (1 year contract term)

• Revenue and profits are currently below investor expectations

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CONTEXT

Customers & Offerings

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Hartnow serves manufacturers in 3 sectors

‣ Automotive

‣ Defense

‣ Aerospace

Hartnow produces two models

‣ A printer for small production runs (Basic Maker)

‣ A printer for larger runs and specialty items (Advanced Maker)

Simulation Intro

CONTEXT

Financial Position

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CONTEXT

Your Role

• Your Role is Chief Marketing Officer

• You control distribution of marketing budget

- Branding

- Marketing and Sales

- Customer Service

- CRM Information

- Strategic Decisions

• Your budget is a function of overall revenue

• Your goal is to increase the market value of Hartnow

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10Simulation IntroCUSTOMER CENTRICITY

CUSTOMER ACQUISITION

Internal Sales & Marketing

Internal staff at Hartnow

• Spend is for enhancing acquisition efforts of sales and marketing teams (not for payroll)

• Highly educated about Hartnow’s evolving capabilities and offerings

• Able to easily adapt sales and marketing efforts to changes in Hartnow strategy

• Possess deep understanding of customer base

• Limited by capacity of staff

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CUSTOMER ACQUISITION

External Sales & Marketing

External marketing and sales agency

• Work on behalf of Hartnow to sell goods and services

• Fees included in cost entered in the Decisions

• Large potential customer database

• Utilize industry standard lead generation and sales tools

• Not as familiar with Hartnow’s evolving capabilities and offering

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STEPS AND PLANNING

PLANNING

Milestones

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|1| KICK-OFF SESSION • Introduction to the simulation • Players Prepare Session

Nov 3 2020 9:30 am - 12:30 pm

Nov 10 2020 Before 12:00 pm

|2| MID-SIMULATION RESULTS • Finish rounds 1 through 4 • Mid-simulation results will be sent out

during the afternoon

Nov 17 2020 Before 4:00 pm

|3| END OF SIMULATION • Finish remaining rounds 5 through 9

Nov 26 2020 2:00 - 5:00 pm

|4| DEBRIEF SESSION • Final debrief of the simulation

PLAYERS PREPARE

Getting to Know the Simulation

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BREAKOUT SESSION