Develop a Customer / Product Matrix pps

Work is Theatre & Every Business is a Stage Harvard Business School Press, 1999... • Experiences are as distinct from services as services are from products.. • How many different kinds

Outline for Discussion

• Understand the customer, develop a profile

• Determining who has the power to buy and why they buy

• Break for lunch (12:15 pm)

• Small Group Exercise

• Company analysis: SWOT

Develop a Customer /

Product Matrix

Customers Products

What are products?

• Tangible goods;

• a service;

Some examples?

• pick-your-own, entertainment

• composting, low input, organic products

Value proposition is a combination of three dimensions:

• Quality: high or low

• Time: little or lots

What’s your value proposition?

Value proposition is a combination of three dimensions:

• Quality

• Money

• Time

Value proposition for

• McDonalds

• Starbucks

Work is Theatre & Every Business is a Stage

Harvard Business School

Press, 1999

Economic development

Agricultural

Economy

Service Economy Industrial

Economy

Good

Commodity

Service

Evolution of the birthday celebration (aka party)

Experience

How do these differ?

• Commodities are produced in the

Service Experience

• Experiences are as distinct from services as

services are from products

• Services are performed for the person (or

property), experiences happen within the

person

• A result (benefit) of the paid experiences is the creation of a lasting memory To an extreme, experiences even change the individual

(transformation) The individual pays not just for another product or service, but the experience

Just

another doll

store?

Just another sporting goods retailer?

Absorb

Immerse

Active Passive

Experiences

• Garden & flower shows

• HGTV

• Planning, planting

• Harvesting

Educational

• Disney Institute

• Master Gardener

Active

• Clinics & Seminars

• Show & tell

• Enjoying social occasion or

• How many different kinds of

experiences can you create with yourproducts & services?

• Can others create these kinds of

experiences at a profit (monopoly)?

• How many different experiences can they have (repeat business)?

• Experiences happen within the person, creating a lasting impression or

memory

• What’s the value of a memory?

• Help businesses determine when clients want active and passive experiences,

and when they want to be immersed in

an environment or to absorb

information

Uncle John’s Cider Mill

During Peak Season

Cider Making Hay Rides

What was your experience?

the experience (what was the profit

potential)?

memories in your business or industry?

Work is Theatre & Every Business is a Stage

Harvard Business School

Press, 1999

• starting place (core product)

• actual product includes features, functions, benefits, and uses

• feature is the technical aspect

• function is what it does (uses)

• feature is the technical aspect

• function is what it does

• uses are how it can be used

• Feature

• Function & Uses

• Benefit

• One of the best tools a business can use

to allocate scarce resources is the

customer/product matrix

• Brainstorm for all the types of products you do offer or could offer

• Brainstorm for different groups of

customers you could or do serve

Customers Products

• Does a business or a family/household or

an individual use the product?

• That should be your unit on the customer side

• Then, describe different groups of those customers in detail

• Create groups of similar customers

• Consider features and benefits

• Consider different sizes and colors

• Consider offering “good, better, best” value combinations

• The key to a good customer product

matrix is how exhaustive the rows and

columns are

• Divide your current customers into

relatively small homogenous groups

• Divide your products into small, descriptive pieces as well

Customers

Products

Daily Weekly Special

Occasion Frappuchino

Espresso

Tea

• The key to a good customer product

matrix is how exhaustive the rows and

columns are

• Divide your current customers into

relatively small homogenous groups

• Divide your products into small, descriptive pieces as well

Customers Products