To perpetually succeed one must understand not only the DyVal hierarchy but also have a process to support its implementation. DyVal is a mash-up of two words Dynamic and Value.
The lowest level of DyVal is a commodity. It has little or no DyVal. A commodity price depends on its location. If the location is close to the purchaser, its total cost should be less. Price is the primary factor in a commodity.
The next level higher on the DyVal ladder combines two old levels. The second level used to be called a product. In fact, many large companies still have product managers. Products now are usually combined with services, the third level in the old hierarchy structure. This old product and service distinction is now seldom a reality. Is your cell phone a product or a service? For most owners, it is both.
Hence, it is best to blend both product and service into one category, an “offer.” See: Blending in ba business plan.
With computer chips embedded into almost everything purchased there is usually a product and service component in what is being offered. Thinking “offer” instead of product or service aligns one with the new market reality.
At this level, regardless of what the DyVal is called, there is a HUGE problem. If something can be copied (a song, a movie, a book or a written idea) AND it touches the Internet, it will be copied. Once copied, price becomes the primary factor.
To stay out of making price the primary factor, one has to move up one more level on the DyVal ladder. At a minimum, your organization has to provide the prospect or client with an “experience.”
Why? Because each prospect/client’s experience is unique. This “uniqueness” cannot be duplicated, and thus your organization can never fall into the price trap. When the interaction is positive, there is a high probability the client will repeat or refer to others (or both). If you deliver a ten out of ten “experience” to clients your business grows 142% without any marketing or advertising See examples: Unique Client Experiences.
This is based on over 300,000 live surveys. Getting a nine out of ten is not enough. A nine out of ten gets only 65% referral/repeat clients. Eight out of ten drops to only fifteen percent. Hence, the successful strategy that optimizes your growth is a ten out of ten with EVERY prospect/client.
There are even higher levels on the DyVal ladder. Experience, however, is the minimum acceptable level of relationship with prospects/clients.
This rating must be done by an independent service. They must commit to never providing you with individual evaluations. Each member of your team gets their evaluation plus the composite company score. Top management gets only the composite score.
Any evaluation where top management sees the individual scores will result in a skewed positive score. The result: top management gets a false sense of how well the organization is doing.
In addition, when the teammate receives the confidential information they have the opportunity to learn without fear. In the best independent organizations, they also provide the individual with specific training; it is designed to improve that person’s feedback.
It is critical that top management receives only the composite score. This provides each team member with the assurance their rating is not being used as punishment. The independence of the third party removes fear and also stops the need by the recipient to “game” the evaluation.
To provide the optimal prospect/client relationship, it is critical to have a CRM (Customer Relationship Manager). In this CRM one captures as much information as possible from the prospect/client. This information is both personal (age, birthday, marriage status, number and ages of children) and professional (business they are in, annual sales, its objectives, the authority of the person you are dealing with, etc.). See: CRM’s value in a business.
There has to be a strict organizational rule: if it is not in the CRM, then it didn’t happen. This way, if the person who primarily deals with this prospect/client is unavailable, another member of the team can almost seamlessly go into the CRM and provide the prospect/client with a very personalized experience
This makes your company far more process-dependent than individual dependent. It reduces variation within your prospect/client processes. Reducing variation on the level of prospect/client’s experience is very important.
Focusing on the prospect/client “experience” and reducing variation in this process by using a CRM (coupled, of course, with the strict policy that if it is not in the CRM, it didn’t happen) will dramatically improve your success.
I am a comprehensivist:
“What can I do for you?”
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