STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
ARTICLE 69
_1_ BUSINESS DRIVERS & VALUE
_2_ STAKEHOLDER ENGAGEMENT & SUPPORT
_3_ GOVERNANCE & PROCESS
_4_ PEOPLE & SKILLS
_5_ INFORMATION & TECHNOLOGY
_6_ RELATIONSHIP DEVELOPMENT & CULTURE
© 2014 State of Flux
The answers to these and many more questions on the relationship will give you an indication of how tough this journey is going to be. But don’t be put off. It will be impossible to be a customer of choice for all suppliers but every step on this journey, no matter how small, gets you closer to the destination. At State of Flux we have been encouraging organisations to think of the effort they put into their customer experiences and ask are they applying similar principles to their supplier experiences? We would like to see suppliers as loyal to your brand as your customers are.
Customer of choice is hard to measure. Do you know when you have it? Suppliers don’t hand out certificates, and if asked directly are almost sure to say that you are. You will only know by observing suppliers behaviours and being aware of the type of benefits that go with being a customer of choice, or from the problems that arise if you’re not.
Three relationship attributes suppliers value:
1. KEY CLIENT ACQUISITION AND BRAND ASSOCIATION
Suppliers would like to align to your brand or have your brand on their corporate CV.
2. REVENUE, PROFIT AND SUPERIOR ‘WALLET SHARE’
Suppliers can either earn good revenue or margin on your account.
HOW TO REMAIN A CUSTOMER OF CHOICE
3. CUSTOMER ATTRIBUTES – DIFFERENT FACTORS AND BEHAVIOURS THAT SIGNAL
THE SUPPLIER AS A ‘TRUSTED PARTNER’
The development of good practice SRM will help you achieve many of the attributes required to become a customer of choice, and help you stay there. Achieving a customer of choice status is not a separate initiative from SRM; it’s integral to the value proposition and will take ongoing work and commitment. Reaching the destination is one thing; maintaining it is another. Companies that win competitive sales advantage through developing more customer loyalty will always be alert and ready to react to
further change. The same must apply to the buy side looking to remain a customer of choice. It’s important to remember you are not alone on this journey; your competitors are trying to get to the same place ahead of you. Complacency is an invitation for others to take over.
Suppliers find you easy to work with and there is mutual respect. For more on this, take a look at the article 'it's about the supplier experience' on page 85.
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