2014 Global SRM Research Report - Customer of choice

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

Sell SIde perspective 91

Figure A. The overall change in customers' SRMactivities in the last 12months – sell side / buy side

0% 10% 20% 30% 40% 50% 60% 70% 80%

○ SELL SIDE ○ BUY SIDE

SIGNIFICANT PROGRESS

SOME PROGRESS

STAYED THE SAME

SOME DECLINE

SIGNIFICANT DECLINE

Figure B. Reasons for lower level of sell side engagement in buy side SRM programmes – sell side

YOU ARE NOT CONVINCED THAT YOUR CUSTOMER IS REALLY COMMITTED TO SRM

CORPORATE AND CULTURAL DIFFERENCES EXIST THAT MAKE SRM DIFFICULT

YOU HAVE MORE PRESSING PRIORITIES

YOU ARE UNCERTAIN OF YOUR CUSTOMER'S MOTIVES FOR SRM

LACK OF SENIOR EXECUTIVE SUPPORT FOR SRM IN YOUR ORGANISATION

YOU DO NOT SEE SUFFICIENT BENEFITS FOR YOU RESULTING FROM SRM

YOU DO NOT CONSIDER THE CUSTOMERS IMPLEMENTING SRM AS STRATEGIC OR A CUSTOMER OF CHOICE YOU DO NOT HAVE PEOPLE WITH THE REQUISITE SKILLS AND COMPETENCIES

OTHER (PLEASE SPECIFY)

0% 5% 10% 15% 20% 25% 30% 35%

CUSTOMER OF CHOICE

To become a customer of choice for more key suppliers, a company must first understand what the current situation is. Less than half of buy side respondents indicate that they have asked for supplier feedback on how they were perceived as a customer in the last 12 months. This is validated by the sell side: only 10% have been asked for feedback by more than half of their customers with whom they are engaged in SRM programmes ( figure D ). To be a customer of choice, it is necessary to understand what a supplier values and the degree to which it is feasible for you to deliver that value. Figure E indicates the value the sell side places on certain attributes.

Sell side feedback provides evidence that customer of choice types benefits are real and tangible. Figure C reveals that around one in six sell side companies indicate they put more effort into account management, and apply senior management and executive focus. Over 50% report more collaboration, ideas for continuous improvement, and simply additional commitment or ‘going the extra mile’. The low number of just 11% who indicate they provide customers who have SRM programmes with first refusal on innovation, is indicative of the work that needs to be done in this area for SRM to deliver its innovation promise.