2. Commerce in the 21st centuary
Chapter 01

3. Discussion topics Understanding the landscape
Defining customer loyalty
Loyalty in the new market place
Building & managing relationships in the new market place

4. 1. Understanding the landscape
The internal landscape
The new market place
The impact
The result

5. 1. Understanding the landscape
A. The internal landscape
The value discipline model

6. 1. Understanding the landscape
A. The internal landscape
Operational excellence
Involves building business processes that provide the best product quality, best price and the best purchasing experience, yielding the best total cost to the customer
Product leadership
Involves focusing investment and energy into developing the product that is the newest or most revolutionary or most sought after, offering the best product to the customer
Customer intimacy
Involves building strong customer relationships, really getting to know your customers so you are sure to really understand their situation, which should yield the best total solution for the customer.

7. 1. Understanding the landscape
B. The new market place
internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet internet yet the basics still count.

8. 1. Understanding the landscape
B. The new market place
Access
More information in customer’s hands
Control
Customers will do business when and how they want to do it
Speed
You want it now, you get it now
Globalization
World is an open marketplace for everyone
Automation
Internet has eliminated many of the employees

9. 1. Understanding the landscape
C. The impact
Internet effects
Operational Excellence
Product Leadership
Customer Intimacy
Access
Easier to compare & swap
Commoditization
Providing human contact
Control
Always on
Broader choice, less differentiation
Interaction preference
Speed
Process expectations
Products unique for shorter periods
Efficiency, not loyalty
Globalization
Language, localization
Localization of products
Unknown language, culture
automation
Process disconnects
Distance from customer needs
Loss of human memory, connection
Summary of changes in the marketplace

10. 1. Understanding the landscape
D. The result
Customer loyalty is the single most important differentiator for ensuring competitiveness and success in 21st centuary
CRM is a continuation of marketing practices and brand management, it keeps you apart.

11. 2. Defining “customer loyalty”
Developing a common language for terminologies/jargons
a. What is a customer
A customer is a human being. Only human beings can make decisions and use products.
A customer is a person who has acquired or is considering the acquisition of one of our products. Anyone who is involved in making a decision, from the financial decision maker to the decision influencer to the end user is a customer.
A customer company is an organization that has characteristics that influence the group of people who work there.

12. 2. Defining “customer loyalty”
b. What is loyalty?
Customer loyalty is a behavior, built on positive experiences and value. This behavior is buying our products, even when that may not appear to be the most rational decision.
Loyalty occurs when an individual has a vested interest in maintain a close relationship, usually resulting from a series of positive experiences that have occurred over time. These experiences can be either tangible or intangible.

13. 3. Loyalty in the new marketplace
Loyalty & disloyalty
Loyalty and profits
Loyalty and value discipline model
loyalty and operation excellence
Loyalty and product leadership
Loyalty and customer intimacy
Lower profit = less R&D money
Less R&D money = less differentiation
Less differentiation = commoditization
Commoditization = lower profits

14. 4. Building & managing relationships in the new market place
Match our operational processes to known customer expectations
Build the products we know the customer needs and wants
Build and customize our product and service offerings to meet specific customer expectations