? Black Box: Customer Decisions
www.cskmanagement.com 2 © Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 3 © CSK Management Nobody will read everything. But everything will be read. Tom Harris, User James Clarkson, Production Manager Deborah Summer, CFO John Carpenter, Procurement Ron Wood, Production Engineer Richard Hammer, Controller Buying Centre
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 4 THIS is your customer! Buying Centre Management (Economic Buyer) External Consultants © CSK Management Users Procurement (Purchasing, Sourcing) Subject Matter Expert (Technical Buyer)
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 5 $ Budget It’s about Value for Money!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 6 $ Budget It’s about Value for Money! Bid Manager: Ambassador of the right ‘balance’ Go for the MEAT (Most Economically Advantageous Tender) Balance value against price to maximise the relation (within budget) Value > Budget > Price 1) Maximise Value!!! 2) Define your Target Price to ◼ be within the customer’s budget ◼ achieve acceptable margins ◼ take into account your competition
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 7 ID 28231391 © Fabio Berti | Dreamstime.com The old struggle between heart and brain?
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 8 ID 34110799 © Fabio Berti | Dreamstime.com The heart always wins!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 9 Customers ALWAYS make emotional decisions, too!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 10 Pure Commodity (‘salt’, ‘screws’) Absolutely Unique Solution Spectrum of Differentiation Only differentiation: price Ability to Differentiate Various possible differentiations = reasons to choose our solution © CSK Management Sell on value, not on price!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 11 Sell on value, not on price! $ 0.028/oz
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 12 Sell on value, not on price! $ 0.62/oz or 22 times more expensive!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 13 Sell on value, not on price! $ 14.16/oz or 500 times more expensive!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 14 Even crazier…
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 15 Hot Buttons, Pain Points, Issues, Motivators, Business Drivers ▪ Issues that drive decisions ▪ Are repeatedly discussed ▪ Often problems resulting from a system, software, process, or resources inhibiting the customer’s success Sources: CSK, APMP BoK
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 16 Ideal positioning: Find the Sweet Spot value for the customer price maximum budget minimum perform. ‘reasonable’ budget Target perform. comfort zone ‘overkill’ risk Sweet Spot
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 17 How compelling is this? Facts tell… The local in-house network consists of a complete GSM network with MSC, HLR, VLR, BSC and BTS. The voice traffic is managed through the existing PBX solution. ... but they don’t sell!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 18 Our value proposition is clear! … isn‘t it??? ◼ „We are the leading provider of…“ ◼ „We have a long experience in …“ ◼ „We focus on our customer …“ ◼ „Our company sets a great importance to …“ ◼ „… is customer oriented…“ ◼ …
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 21 Talk about the benefit, not about features. Customers want benefits, not features. Important: do not confuse a BENEFIT with a FEATURE Feature (your product/your service) Benefit (for the client) Key: Benefits happen on the client’s side. Features are on your or on your product’s side. RESULT • They do not have to do it themselves. • They save time and money. • They have less risk of doing it wrong. “self-lubricating” RESULT ‘100 NM range’ is an aspect of a product and therefore a feature. ‘State-of-the-art solution’ is an aspect of a product and therefore a feature. FEATURES are about you or your product and service. A BENEFIT is about the RESULT on their side.
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 22 How do I find out about the benefit? Just ask – and what is the benefit of it? ‘All drive shafts are self-lubricating.’ ‘They don’t need to be lubricated.’ ‘The employee’s workload is reduced and there’s no risk of something going wrong if staff lubricate incorrectly.’ ‘Less workload. More time for other things. Less technical risk that could cause a delivery bottleneck.’ ‘As all drive shafts are self-lubricating, the maintenance workload for operational staff is reduced. The technical, commercial and security risks are therefore significantly lower.’ Feature Feature + Benefit! Feature Benefit! Benefit!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 23 Your turn! Your Storyline!
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 24 What’s the message of this chart? Process Map Deployment Change Management Anwender Incident Management Service Desk Problem Management Release Management Configuration Management Service Level Management Störungsmeldung Anforderungsmanagement (AFM) Kunde Kundenanforderungen Technical Support Operation, (inkl. Event- management) Störungen Trenddaten Testing Planning & Design Financial Management Availability Management Capacity Management IT Service Continuity Management CMDB-Daten Leistungsverrechnung Architekturchange RfC und Planungsdaten Dokumentationen Genehmigung Design Anfrage (fachl. RfC) BFK Störung / SR CMDB-Daten CMDB-Daten Service Request RfC CMDB-Daten RfC Workaround / Known Error UHD Unknown Errors Änderung CMDB Service Support Information Design Build Rollout (IMAC) Kalkulationsdaten CMDB-Daten Kapazitätsdaten Verfügbarkeitsdaten Notfalldaten Delivery Daten Prozesse der IT-Zentrale Service Delivery ICT Infrastructure Management Service-/ Produktkatalog Infos zu RfCs Angebotsmanagement Angebot Beauftragung (CR) Techn. Grobkonzept IT-Strategieprozesse UnternehmensstrategieIT Service- & Prozessmanagement Security Management Monatsgespräch/ Anforderungen SLA-Eskalationsmanagement Störung Applikationsbetrieb Applikationsentwicklung Design Build & Test Deployment Operation Optimize Application Management Requirement BFK Freigabe Produktivsetzung Prozessverbesserung: D M A I C Service- / Produktkatalog CAB CAB CAB ①②③④⑤⑥⑦⑧⑨⑩⑪⑫⑬ Deployment Change Management Anwender Incident Management Service Desk Problem Management Release Management Configuration Management Service Level Management Störungsmeldung Anforderungsmanagement (AFM) Kunde Kundenanforderungen Technical Support Operation, (inkl. Event- management) Störungen Trenddaten Testing Planning & Design Financial Management Availability Management Capacity Management IT Service Continuity Management CMDB-Daten Leistungsverrechnung Architekturchange RfC und Planungsdaten Dokumentationen Genehmigung Design Anfrage (fachl. RfC) BFK Störung / SR CMDB-Daten CMDB-Daten Service Request RfC CMDB-Daten RfC Workaround / Known Error UHD Unknown Errors Änderung CMDB Service Support Information Design Build Rollout (IMAC) Kalkulationsdaten CMDB-Daten Kapazitätsdaten Verfügbarkeitsdaten Notfalldaten Delivery Daten Prozesse der IT-Zentrale Service Delivery ICT Infrastructure Management Service-/ Produktkatalog Infos zu RfCs Angebotsmanagement Angebot Beauftragung (CR) Techn. Grobkonzept IT-Strategieprozesse UnternehmensstrategieIT Service- & Prozessmanagement Security Management Monatsgespräch/ Anforderungen SLA-Eskalationsmanagement Störung Applikationsbetrieb Applikationsentwicklung Design Build & Test Deployment Operation Optimize Application Management Requirement BFK Freigabe Produktivsetzung Prozessverbesserung: D M A I C Service- / Produktkatalog CAB CAB CAB
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 25 https://www.autoevolution.com/news/bmw-introduces-new-sound-logo-video-56578.html, BMW campaign 2013 Talk about the benefit!
www.cskmanagement.com 26 © Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting
© Christopher S. Kälin, CSK Management, APMP Florida Sunshine Chapter General Membership Meeting www.cskmanagement.com 27 Can you do me a favour? Let’s connect. Christopher S. Kälin [email protected] CSK Management