The Change Dude’s Blog

Balancing Act-Customers & Shareholders

Who’s on first?  Executives have always had to balance operational efficiency and customer needs, these days it’s akin to juggling roaring chain saws. Frugal customers looking for the best possible value have the ability to switch brands and service providers with the click of a mouse while Wall Street continues to push for every shiny penny of earnings. There is very little room on either side of the scale for movement. 

Domestic airlines have made their choice, earnings.  Recently released revenues from incremental charges for baggage, legroom and in-flight snacks have added $1.85 billion to one airline alone.  Passengers are increasingly unhappy and dread the flying experience.  Tolerance for all the annoyance from air carriers apparently stems from relatively low fares.  We’re seeing value for money so accepting reduced service levels is acceptable.  Consumers understand that in today’s economy something in the value equation must be sacrificed.

Strategies are becoming focused on providing  more for less for more.  Offering a better value for more customers is crucial to growth. Providing the more isn’t about volume but about value.  Value in 2010 comes in differing forms for each customer.  The challenge is divining the true value proposition of your business for a majority of your customers.

Finding the sweet spot where operational efficiency and customer engagement are in perfect balance is the challenge and the opportunity for innovation.  The recently announced $35 lap top is a wonderful example. Any opportunity to reduce the effort customers must exert while doing business with you is a significant win. 

Critical to holding existing customers and building for the future relies on the core competency of quickly turning customer needs, perceptions and value drivers into innovative alternatives.  Examples of these innovation abound.  From the use of mobile handhelds to make bank deposits by snapping a picture of the check to offering liberal return policies or the implementation of virtual service representatives.

Shareholder value growth and customer engagement rely on your ability to find the right balance.

July 27, 2010 - Posted by thechangedude | Uncategorized