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Customer is King

Customer is king!

Delight your customer!

Define your customer’s needs!

I am sure you will know many more but what do they mean?

I believe that a business model design must start at the customer and work into the company.

However the key to a great business model design is defining what value we can bring to the customer’s own operation. We need to have a very detailed understanding of the customer’s business in order to achieve this.

This requires a great deal of analysis and not just relationship building or merely asking them what they “need”!

The power tool manufacturer Hilti was facing commoditisation in its market. Its response to that threat was to completely change its customer relationship.

Selling individual power tools put the emphasis on the customer to maintain them and replace high losses.

Instead Hilti introduced a monthly fee-based leasing system for whole ranges of power tools needed by large customers. It was “we take care of everything” unique value proposition.

This new approach had the company design a completely new business model. Selling contracts to Director level executives and an efficient low-cost maintenance and replacement system.

Does your business model have a laser focus on adding value to your customers?

Does your business have a positive sustainability business model?

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