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STRATEGIC QUALITY OF THE CUSTOMERS
 
How can the strategic quality of existing and potential customers be evaluated?
 

BANKING ON THE “RIGHT” CUSTOMERS

FOR THE FUTURE 

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Only those who understand the strategic quality of existing and potential customers will be able to bank on the right customers in the future.
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Although a systematic evaluation of the strategic quality of customers forms the nucleus for developing a successful market presence, many companies shy away from the task. Most strategic concepts contain nothing about the strategic risks or strategic potential of its customers. But this is increasingly dangerous in an increasingly dynamic market environment.

Profound changes – especially in mature market structures – can have fatal consequences for existing and potential customers and therefore for companies. The evaluation of the strategic quality of existing and potential customers requires a new conceptual approach that takes into account the following aspects:



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1. THE POSITION OF YOUR CUSTOMERS IN THE MARKET LIFE CYCLE IS DECISIVE!


What phase of the life cycle is your customer’s market or industry in? In other words: Are your customers active in markets that could expect corresponding growth today or in the future?

Due to questions of growth or other risks, it does not make sense for a company to concentrate only on customers who are within one individual phase of the market life cycle. Only those companies that possess the right mix of customers will fulfill the basic requirements for realizing sustainable growth. In order to actively set up the right mix of customers it is vital to know what phase your potential or existing customer markets are in and which models or mechanisms for success are in place in these cycles.
 

2. THE QUALITY OF YOUR CUSTOMER’S BUSINESS MODEL IS VITAL 

To what degree is the business model of your existing or potential customers unique, sustainable and coherent with the requirements of the market in question?

Assessing the quality of your customer’s business model is intended to determine whether and which customers are able to create value for their customers and which ones have managed to use that value to capitalize on a sustainable profit model. The "Value creation and value capture matrix” therefore offers a valuable method for analyzing the position of your customers within the SCM model. It enables you to quickly recognize which of your customers enjoy a high-, mid- or low-quality business model and what future potential these customers really possess.



Identifying the RIGHT CUSTOMERS using IMP’s assessment methodology is the central requirement for putting into place a form of logic oriented to the growth strategy of a forward-thinking customer portfolio.

 

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Assessing the strategic quality of existing and potential customers requires a new conceptual approach.

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