Organizational Alignment - Metrics for Sustainable Growth

An old management adage asserts that anything that isn't measured isn't managed. It is surprising; therefore, that customer-perceived loyalty and/or value aspects critical to success, is often not measured, plotted, or tracked. The good news is that customer-perceived loyalty and/or value can be measured, and managed. What ultimately matters is not merely satisfied customers but the extent to which customers will choose your offering instead of the competitor's offering.

A client once told us, "it is the customer who has the money, and without customers we don't have any reason to exist". The quest for continuous improvement, customer delight, and building loyalty does not come easily. Improvement requires commitment, facing one's shortcomings and having the data to measure ones progress vs. the industry. If customer satisfaction is more than a slogan, we recommend you do it right and choose to use Mastio & Company's leading edge product.

The simple truth is customers base their purchase decision on which supplier(s) provides the best-perceived value.

Will customers choose to buy from you or from your competitor? The question is fundamental; the answer is simple. Most of the time, customers will choose the supplier whose products offer them the best value, i.e. the most useful benefits at the most reasonable prices. For this reason, empirical evidence shows that companies that can offer superior customer perceived value exhibit rising market share, rapid growth, and improving profitability.

To become the supplier of choice, a business must become known as providing better value than the competition. Managing customer loyalty and value involves coordinating products, prices, service, customer and employee relationships, marketing communications, and quality assurance to name a few in a strategically coherent and cost effective way. The aim is to provide a superior package in terms of what the customer really want.

Sustainable and profitable growth is achieved by aligning your company with customers - focusing resources in critical areas and delivering a "package" that best meets customers' priorities. In short, sustainable growth is achieved by having the data to align one's organization to the market and this is where Mastio & Company can help.

This principle of organizational alignment centers on the concept of a Value Proposition. A “Value Proposition” states the benefits, tradeoffs and pricing position your company will offer targeted customers vs. the competition. Our unique approach provides a powerful guidance system for companies to measure and identify improvements that will most impact their overall perceived value - and therefore influence more customers to choose them vs. the competitors. For your company to move from market analysis to a winning market strategy you must develop a Value Proposition to guide your strategy. As stated above, a Value Proposition is about choosing what factors will be used to guide your internal value delivery work and marketing communications over the long haul. A Value Proposition comes from making a conscious choice about the factors where you will consistently beat the competition and on what factors you will “trade-off”. Trade-offs are factors where you choose to be “just competitive”, or perhaps you may choose not to provide a factor at all.

Source: Superior Customer Value: Concepts and Cases (2nd Edition)

It is often said that strategy is all about making choices. We suggest that our approach provides powerful guidance on the set of factors where your company might improve your value position vs. competitors. A Value Proposition is about choosing what factors will be used to guide your internal value delivery work and marketing communications over the long haul.