Customer Advisory Boards: Discovering new value propositions during economic crisis

Tuesday, February 10, 2009 by Rob Urbanowicz
Last week I facilitated my 23rd customer advisory council meeting in the last 2 years.  The meetings I’ve facilitated have included “C” suite executives from telecom, financial, banking, retail, high-tech, higher education, professional service firms, and manufacturing.  Over this time period, I’ve seen an interesting shift in the discussions and strategies from these executives. 
In 2007-2008, much of the executive level strategic discussions in executive customer advisory boards focused on the changing landscape in technology, the evolution of Web 2.0 and ASP models that would provide new levels of service in an evolving IT oriented landscape.  Demographic shifts to metropolitan areas and globalization were the drivers of strategic planning.  But over the past 9 months the discussions have dramatically shifted toward today’s economic environment that many B2B organizations are grappling with; determining impacts to their operations, customer relationships and customer loyalty.   
But most importantly, I’ve found that leaders have shifted their thinking from the tactical approach in Q3 of 2008, to a “mid-term” strategic approach through Q1 2009.  What I mean is that the 2008 dramatic impact of the economic downturn left B2B firms in the position where they threw out their strategic planning and focused on the day-to-day and week-to-week operations of the business.  Long-term planning was reduced to the next month of operations.   But now, as we’ve turned the corner into 2009, I’m finding organizations are thinking about their mid-term strategic approaches that will cover the next 12 months or so. 
The economic crisis has created a sense of urgency to get on with executing the changes that were once deemed too difficult or time consuming to deliver.  Organizations are making the headcount reductions that they’ve hesitated to do, making the cost cut focused six sigma decisions that were often shelved, and are no longer taking on the attitude that projects are OK to be delayed.  The mid-management team that has often stifled change in business is taking on a “git-r-done” attitude.
What this means to customer facing executives is that the value proposition built into products and services must change to meet the new market reality.  What delivered value just six months ago is no longer appropriate in many markets, and the sales pitch must change along with the new focus of customers.  Now is the time to listen intently through the voice of the customer to the new strategies and directions from your strategic customers in the B2B market.  Programs like a customer advisory board, a strategic major account program, executive summits and executive roundtables are a great environment to listen to the market, and craft the new value proposition to accelerate sales and increase customer retention. 

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