http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/matrix.jpghttp://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/handshake.jpghttp://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/respect_and_handshake.jpgAfter learning of the journey at Experian, we had the chance to hear from Das Narayandas, a well-regarded authority on B2B marketing & customer management. Das shared two very simple frameworks with a powerful punch. 

The basic message was if you want to build good loyal customers you must understand the value you create for customers and evaluate your customer portfolio to meet their unique needs. 

Creating value for customers requires that you move from product features to customer benefits. This has never been more important than in today's selling environment. Gone are the good old days of buying on the promise of the value your product or service may bring. Customers today are more discriminating and demand measurable business outcomes.   

Das offers a 2x2 framework: your ability to quantify the benefit on one axis and your ability to communicate the benefit on the other. By looking at your value proposition in this context you can quickly identify where your value proposition is and how it drives sales. The framework offers 4 categories:

1. High economic benefit, high ability to communicate: you must compare yourself with your competitors and have superior price performance.
2. High economic benefit, low ability to communicate: the burden of truth is on your side. Get a 3^rd party benchmark, pilot test or offer guarantees.
3. Low economic benefit, high ability to communicate: focus on building brand preference
4. Low economic benefit, low ability to communicate: not ideal for acquiring customers. Use as the glue to loyal customers.

The second framework he offered allows you to evaluate your customer portfolio. After all, customers are not all created equally and you need to manage them differently. In this framework, he offers us another 2x2 matrix. Here, we look at price on one axis and cost to serve on the other. Keep in mind that cost to serve excludes cost of goods sold (COGS).

In his experience companies have customers scattered in all four quadrants, and the important point is to understand where customers are in their lifecycle. Here's how they break down:

• High price, high cost of services: this is where life begins. Customers here value innovation, want full service, and are willing to pay for it.
• High price, low cost of services: the good life! Are these customers loyal or uninformed? They will eventually become informed and you need to understand them and keep them as long as possible.
• Low price, low cost of service: commoditization. This can be 40% of a business. Here you have to strip away and sell the core product at the lowest possible price.
• Low price, high cost of service: while obviously not ideal from a business prospective, you may choose to invest in some customers in exchange for reference or partnering on new products. Here you should evaluate whether you can move the client to another quadrant, strategically invest, or whether you need to fire them.

Das wraps up by telling us Promoters can live in any of these quadrants. The important point is to understand where they live and how best to serve them. 

I would recommend evaluating your benefits and customer portfolio in this context. I put this tool in my bag for future use. Sales & marketing today requires a focus on benefits vs. features -- these frameworks can provide the discipline to evaluate how best to serve your clients and create more Promoters.