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CUSTOMER VALUE LEADS TO GROWTH
Growth is important to virtually every business, and there are only a few generic approaches to growth. A firm can acquire new customers or rely on old customers. A firm can expand into the sale of new products and services or rely on the traditional product mix. These alternatives can be combined into the Growth Matrix (Figure 3). The success of each approach to growth is dependent upon one thing, delivering better value than the competition.
Existing Customers - Existing Products
This growth strategy probably has the greatest potential for growth but is often overlooked. Very few businesses have a 100% share of a customer’s expenditures. Normally a customer will purchase from several competitors. For example, a grocery shopper may shop at four grocery stores during a month. Or a lady may purchase clothes at four or five stores. Or a couple may dine at numerous restaurants. In each case, a particular store may have only 30 - 40% of a customer’s expenditures.
If a firm could move from an average share of expenditure of 30% to an average share of expenditure of 40%, it would have a 33.33% sales increase. And if it went from 30% to 60%, its revenues would double. Unfortunately, many firms assume that all customers are loyal, devoted, and make 100% of their expenditures with a firm. However, this is seldom the case. Most firms have no idea of what share of expenditure they are getting from their customers. Studies have shown that the best predictor of share of spend is the customer’s perception of value. The greater the customers’ perception of value, the greater the share of pocketbook that a firm will have.
Existing Customers - New Products
This growth strategy occurs when a firm tries to build upon an existing relationship with customers by offering new products. It could be a restaurant that adds a home delivery or take-out option to a dining operation. It could be a grocery store that adds floral, video rentals, and film developing. It could be a telecommunications firm offering an array of new services, such as caller identification, voice messaging, or call forwarding.
The key to success here is that the new products must be a logical extension of the core competency of the firm and create good value for the customer. The economic landscape is littered with the remains of firms that fiercely clung to the “traditional mode of operation” and were passed by firms willing to innovate with new value propositions. Unfortunately the customer’s desires are often not readily apparent. The implication is that a firm must understand how a customer perceives a value proposition and to tie the new product to that perception.
参考答案:消费者评价上升导向
增长实际上对于每一个商业来说都很重要，一般很少有增长的，一个公司需要新的客户也依赖旧的客户，一个公司可以扩大为销售新产品和服务，或依赖于传统混合型产业，可以把这些选择性的结合到增长中(Figure 3). 每一个增长的成功都依赖于一件事，比竞争更有价值的是好的服务。
以上是第一段的内容