Developing the proposition

9% DO involve all proposition stakeholders in its development

Fewer than 1 in 10 companies involve all the providers of the proposition (eg sales channels, service, technical support, product development, administration) in defining their proposition. No wonder so many propositions are undelivered - they are probably undeliverable because functions involved in delivery have never been consulted!

54% DO NOT have a clearly defined proposition

Less than half of companies researched actually define any proposition with standards that can be used to measure that the proposition is being delivered. The challenge is to translate the proposition into something that is REALLY understood by everyone (to help guide values, beliefs and behaviour) and then to ensure that these become embedded in the norms of the organization.

24% DO carry out needs research on customers and prospects

Only a quarter of organizations carry out true NEEDS research among either customers or prospects. Many more carry out other types of research but this does not reveal customers' underlying needs. It often focuses on views about the current or future product range.

9% DO carry out needs research by segment

Many propositions are developed which are simply irrelevant to high-value customers. Only about 1 in 10 carry out needs-based research by segment.

War story: irrelevant proposition

Rail companies often report their performance in stations using posters. A regional UK railway did this, but the elements that they chose to focus on, illustrated with large wall posters in the station, included factors such as 'temperature of carriage' and 'comfort of seats'. They did cover punctuality but ignored the other factors that were most important to customers, such as reliability, availability of seats, keeping customers informed, and cleanliness of trains. It will come as no surprise that they scored highly on most of the things they reported on!

These last few points suggest that many companies do not recognize the determinants of customer repeat purchase (ie not just 'the brand' or television or marketing messages, or the loyalty scheme, but each and every experience with the brand). Some companies are simply confused about this whole area. Apart from consumer goods companies, there is limited recognition of the role of emotional loyalty as a input to proposition development.

Communicating the proposition

36% DO NOT formally check that customers and prospects understand their proposition

The most successful companies focus on keeping the proposition in the minds of their customers and staff. Just over a third of organizations do not check that either their customers or their own staff fully understand their proposition. This usually means identifying measures that are easily understood and monitored, but that also reflect the key dimensions of the proposition. It also means always tying reward and recognition (not necessarily financial) mechanics to proposition measures.

17% DO NOT check that customer-facing staff understand their proposition

It is no wonder that various studies have shown that a high proportion of complaints are caused by a mismatch between what customers think they are entitled to and what the organization thinks it is providing. Actual service or product failures account for far fewer complaints.

War story: separate propositions within same company

One utility organization that was assessed had four separate market channels: sales force, call centre, direct mail and a Web site. Each channel had a source of support information on the proposition, and although managers tried to keep these synchronized, there were invariably differences, It was possible for prospects to get different versions of service entitlement and price from the four different channels, even though this was NOT the company policy.