Can the customer value proposition be saved by service dominant logic?by
'Value propositions' are over-hyped and under-utilised according to Adrian Payne. But could service dominant logic and cocreation change this?
- Laundries that sign up with Milliken get access to a computerised routing system enabling them to route their trucks much more efficiently. As a consequence, they can get rid of a few trucks, redeploy the drivers and eventually make a long-term cost saving.
- Milliken has developed specialised software for accounting and finance that allows laundries to do a lot more in-house and not go to expensive accountants.
- Milliken also has a system that can be put in place that enables laundries to do an internal laundry comparison, so that they can benchmark where their industrial laundry sits along hundreds of others and benchmark where they sit, as well as providing a profit improvement programme that enables laundries to establish what they need to do to move to higher profitability.
- Laundries also get factory leads from Millken.
- Milliken also provides free training for the salesforce.
- A belief that existing customers are being or will be retained as a given.
- A belief that their churn rate is high so they must “fill the leaking bucket”.
- Customer acquisition is reported regularly to shareholders/analysts/senior management, but businesses don’t report churn rates.
- Sales teams are rewarded for acquisitions but not for retention.
After two decades of experience working as a journalist and editor covering business and technology, including over 15 years as editor of MyCustomer, Neil now works as senior content manager at skills-based workforce management platform provider Spotted Zebra. ...