Kepner-Tregoe Service Value ManagementCustomer Service as a Profit Centerwww.KePner-Tregoe.CoM“KT made it possible to uncover great savings without reducing staff and disrupting the organization.” Ray Miko, VP Organizational Development, Ricoh Corporation“we have been able to solve customer problems in half the time where weve engaged and used the KT process.” Mark Hayden, Global Program Manager and Six Sigma Black Belt, Sun MicrosystemsTransforming the Customer experience: KT Service Value ManagementService Value Management (SVMTM) is about more than providing your customers with high-quality and world-class support; its about transforming the customer experience. Face it, in todays highly connected world, good customer support just doesnt cut it; and one customer experience has the power to affect many others. Service organizations need to transform from traditional customer support to customer service and from cost centers to profit centers.At Kepner-Tregoe (KT), we take a holistic, systematic approach to creating business value by making service a direct, profound driver of revenue and profit. what is Customer Lifetime Value?If you had to put a single dollar value on a customer, what would that be? That dollar value is Customer Lifetime Value (CLV), the present value of all future cash flows attributed directly to your relationship with that customer. Focusing on CLV allows you to make decisions that align your service organization with your companys strategy and achieve your targeted bottom-line results.www.KePner-Tregoe.CoM“Since we started using KT to improve our problem-solving operations, we have cut our costs by a six-digit figure.”Ulrich Tews, Dell, Technical Escalation Manager“Service requests now pass from one engineer to another with maximum efficiency, and the engineers have a systematic process to crack even the toughest problems.”Customer Support Leader, ITService Management in TransitionTodays customer service landscape is changing rapidly: Corporate and service strategies are evolving from a product centric to a solution and customer centric business modelCustomer service needs to be able to support the rapid evolution of converging technologies and multi-vendor, multi-product servicesTo achieve higher effectiveness and efficiency, companies operating at a multi-site/multi-national/global level require a high level of consistency in how they deliver their servicesIn a buyers market, quality and speed of service have become the most important drivers of customer satisfactionThe 10-year ACSI* customer satisfaction study has revealed the significant relationship between customer retention, profitability and shareholder valueStrategy, processes, people, and systems need to be realigned to deal with the considerable challenges and opportunities brought about by the change. KT supports you in addressing the right variables in this equation that will have the most impact on your service revenue streams and service delivery costs. * American Customer Satisfaction IndexREVENUECOSTSRevenue Improvements through Maximizing EffectivenessCost Reduction through Maximizing EfficiencyFrom Cost Center to Profit Centerwww.KePner-Tregoe.CoM“Because we partnered with KT, we are in a much better position to leverage change and make it work for us.”Senior Manager“I was astounded by the work accomplished.” Country Support ManagerAt KT, we understand how organizations work in fact, we even wrote a best-selling book on it (How Organizations Work by Alan Brache, KT Vice President, Client Solution and Design). Based on our 50 years of experience in improving business performance, we created an analysis tool that helps identify how you can most effectively and quickly increase CLV from both a revenue and cost perspective. From this analysis, we can provide a modular suite of solutions to address specific issues that affect the core value drivers. These drivers provide the framework for our Service Value Management model. Drivers of Customer Lifetime Value (CLV)Process EffectivenessPeople EffectivenessOrganizational EffectivenessService QualitySpeed of ResolutionSecondary SalesIncreasing Service RevenueReducing Service CostService SalesCustomer RetentionCustomer ReferralsCustomer SatisfactionService PriceCustomer Lifetime ValueCost of OrganizationProcess EfficiencyPeople EfficiencyOrganizational EfficiencySoftware EfficiencyHardware EfficiencyProduct ServiceabilityService StrategyProduct PriceProduct QualityService Value Management Model we understand the complexity of consistently delivering high-quality, world-class service and support. with so many factors affecting CLV, our Service Value Management model focuses on the six key drivers that contribute most to CLV: Strategy and Culture, Monitor and Control, Service Processes, People, Tools, and organization. This model brings clarity to improvement efforts by providing a logical framewo