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Treating customers fairly and profitably 26 September 2013 Victor Olowe Director, Winzest Consulting . LFS Conveyancing Conference. Nagging question. What is treating customers fairly?. Profitability League Table (Hypothetical Profit League Table – Conveyancing Firms). - PowerPoint PPT Presentation

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Presentation Title

LFS Conveyancing Conference Treating customers fairly and profitably

26 September 2013

Victor OloweDirector, Winzest Consulting 1

Nagging question

Source: Winzest Consulting

2

What is treating customers fairly?

Source: Winzest Consulting

3

Profitability League Table(Hypothetical Profit League Table Conveyancing Firms)

Source: Winzest Consulting

4

How businesses are wired?

Source: Winzest Consulting

5

Treating Customers Fairly Matrix Source:Winzest Consulting

6

Capacity to ExperimentI dont think that you can invent on behalf of customers unless youre willing to think long-term, because a lot of invention doesnt work. If youre going to invent, it means youre going to experiment, and if youre going to experiment, youre going to fail, and if youre going to fail, you have to think long term.

(Jeff Bezos, Amazon)

7

Pricing powerThe cost of being a conveyancer..- Low fixed fees

(Eddie Goldsmith, Conveyancing Association)

8

Pricing powerThe single most important decision in evaluating a business is pricing power.

If youve got the power to raise prices without losing business to a competitor, youve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then youve got a terrible business.

(Warren Buffet)

9

Another Roger Bannister?

Source: Winzest Consulting

10

Treating Customers Fairly Matrix Source:Winzest Consulting

11

Possible barriers to change Source: Winzest Consulting

12

Key Drivers of Change

Source: Winzest Consulting

13

Smarter CompetitionSource: Winzest Consulting

14

Smarter CompetitionSource: Winzest Consulting

15

Smarter Competition Bad profits

Though bad profits dont show up on the books, they are easy to recognise. They are profits earned at the expense of customer relationships...

Bad profits strangle a companys growth, primarily through the detractors they create

Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

16

Smarter Competition Bad profitsWhenever a customer feels misled, mistreated, ignored, or coerced, profits from that customer are bad. Bad profits arise when companies shortchange customers by delivering a poor experience. When sales reps push overpriced or inappropriate products onto trusting customers, the reps are generating bad profits. When complex pricing schemes dupe customers into paying more than necessary to meet their needs, those pricing schemes contribute to bad profits

Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

17

Smarter CompetitionGood profits

Good profits are dramatically different. If bad profits are earned at the expense of customers, good profits are earned with customers enthusiastic cooperation. A company earns good profits when it so delights its customers that they willingly come back for more and not only that, they tell their friends and colleagues to do business with the company

Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

18

Smarter Competition Good profits

Satisfied customers become, in effect, part of the companys marketing department; they become promoters. The right goal for a company that wants to break the addiction to bad profits is to build relationships of such high quality that those relationships create promoters, generate good profits and fuel growth

Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

19

Smarter Competition Good profits

..A truly customer-focused company is one that lives up to the Golden Rule. Employees treat customers the way they would want to be treated if they were customers. That means avoiding bad profits entirely

Fred Reichheld, Rob Markey & Andreas Dullweber (Bain & Company)

20

Smarter Regulation

Better Tools21

Smarter Consumers(How customers pay?)

Source: Seth Godin

22

Smarter Consumers

Better InformationCollaborative Decision MakingConnection Economy23

Moving to the next level Treating customers fairly framework

Source:Winzest Consulting

24

Summary Are we asking the right questions?

Source: Winzest Consulting

25

Summary

Source: Winzest Consulting

26

Summary Although the next two to three years looks promisingThe long term future is still uncertainThe challenge to find the right talent may continueUnless this sector is perceived to be more sustainableThe new disruptive competitors are unknownBut the regulators may look different The influence of channel partners may waneBut customers expectations will surely changeAnd the businesses that remain intelligently focused oncustomers will thrive

Are we making good or bad profit?

27

Further informationRelevant papers at www.winzest.co.uk

Setting Profitable Fixed Fees through Value Based PricingDeveloping a Better Customer Service Culture

Are we making good or bad profit?

28

For further information please contact us : [email protected] winzest.co.uk29