That’s right the old Mantra; Faster, Better, Cheaper is the norm nowadays. It really is not separating you from the crowd, it is only the average. How are you going to build Market Share? How are you going to be increase revenue? When you are only average?
People start utilizing methodologies like Lean and Six Sigma and start showing remarkable improvements. However, the market is a living thing and most companies have a tendency towards improvement which means that the bar is being continuously raised. As a result the “average” continuous improvement project gets you absolutely nowhere. Unless you can make significant improvements there is only one way to make those improvements effective.
In any given product/market there are Critical to Quality components that are important to the customer that makes them buy your product over another. You may have the WOW, availability, price, etc. The market may define those CTQ’s or other CTQ’s differently and that is why they buy another product. The acronym may make it sound complicated but it really is not most of the time. I mean really does anyone buy an iPad for reliability or price. No, they buy it because it is cool and seemingly will make their life easier. You still have to be competent in other areas but they are not the driver of sales.
That dirty little secret is that most companies take an inside out approach to improvement and really don’t concentrate on the CTQ’s of the customer for retention and the CTQ’s of the market for acquisition. So if you take an outside in approach in improving quality you will improve more than the average guy and as a result improve market share and/or profits. It really is that simple.
I had three recent discussions on this very subject and they all took a slightly different approach but all had a central theme of Customer Value.
- Dr. Eric Reiedenbach when we discussed Best in Market on the podcast Applying Six Sigma Marketing to become Best In Market. Eric discussed finding the Critical to Quality Issues that determined how a Customer defined Value in your Product(Service)/Markets.
- Mike Bremer co-author of Escape the Improvement Trap: Five Ingredients Missing in Most Improvement Recipes
. Mike discussed tying all improvement efforts to the CTQ’s components and more specifically to your Value Proposition.
- Christine Moorman co-author of Strategy from the Outside In: Profiting from Customer Value. Christine discussed developing your strategies and the deployment of those strategies through an Outside in approach.
These are three very unique perspectives that really approach the issue of customer value totally different. They all take a different path, disdain average but arrive at the same place. They even agreed on the same metrics: Market Share and Profitability. I wonder if all three of them have found the Holy Grail?
Related Posts:
Profiting from Customer Value
Why Lean Marketing? Because it is the Future of Marketing
What does a Customer want?
Six Sigma Marketing introduces 5 Cs of Driving Market Share Webinar Series
Your Value Network Participants; Who are they?
