39
Customer of choice Increasingly recognised alongside financial and operational benefits are a range of benefits that have become collectively known as ‘customer of choice’ benefits. “A customer of choice is a company that, through its practices and behaviours, consistently positions itself to receive preferential access to resources, ideas and innovations from its key suppliers, that give it a competitive advantage.” In the past, doubt has been expressed about whether ‘customer of choice’ is real and tangible. The evidence is provided by both the buy and sell side feedback. The buy side are reporting customer of choice benefits being received as indicated in the below chart. Customer of choice benefits – general increased commitment, preferential pricing, continuous improvement, senior management commitment and improved account management – are all reported by over 50% of respondents .
Figure 1.11. Customer of choice benefits – buy side
56%
PROACTIVE IDEAS FOR CONTINUOUS IMPROVEMENT SENIOR MANAGEMENT COMMITMENT / SUPPORT IMPROVED ACCOUNT MANAGEMENT
55%
1
54%
52%
PRIORITY ACCESS TO THE BEST PEOPLE AND RESOURCES INCREASED WILLINGNESS TO ACCEPT AND MANAGE RISK GENERAL INCREASED COMMITMENT ('GOING THE EXTRA MILE') PREFERENTIAL PRICING
50%
30%
29%
25%
OTHER NONE FIRST REFUSAL ON INNOVATIONS INCREASED WILLINGNESS TO INVEST IMPROVED ACCESS TO MARKET INTELLIGENCE PRIORITY ACCESS TO SCARCE MATERIALS AND / OR MANUFACTURING CAPACITY
23%
22%
11%
6%
4%
From the sell side perspective, it is clear that the benefits reported above are not imagined. Sell side companies report providing the below benefits to customers as a direct result of being engaged in an SRM programme. Customer of choice benefits such as first refusal on innovations, priority access to the best resource, willingness to accept and manage risk, continuous improvement, and improved account management, are all provided by over 50% of sell side respondents .
Figure 1.12. Customer of choice benefits – sell side
63% 63%
INCREASED WILLINGNESS TO ACCEPT AND MANAGE RISK PRIORITY ACCESS TO THE BEST PEOPLE AND RESOURCES PROACTIVE IDEAS FOR CONTINUOUS IMPROVEMENT
1
61%
53% 53%
FIRST REFUSAL ON INNOVATIONS IMPROVED ACCOUNT MANAGEMENT
41%
SENIOR MANAGEMENT COMMITMENT / SUPPORT PREFERENTIAL PRICING INCREASED WILLINGNESS TO INVEST PRIORITY ACCESS TO SCARCE MATERIALS AND / OR MANUFACTURING CAPACITY IMPROVED ACCESS TO MARKET INTELLIGENCE GENERAL INCREASED COMMITMENT ('GOING THE EXTRA MILE')
36%
33%
29%
23%
21%
4%
0% OTHER NONE
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