dm_csstd_dmk8_2

See figure 31 for details according to the

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Unformatted text preview: rrent customer base. See Figure 31 for details. According to the performance metrics of the Delta Model, DMK International should highly focus on providing Tier one and two clients, which are already the company’s exclusive/strategic partners and in the system lock-in of the Delta model, with new services/products, and capability to delivery new services/products to their partnership. Therefore, the significant dimensions in the performance metrics should be percentage of strategic/exclusive partnership acquisition, percentage of business volume from strategic/exclusive partnership and switching costs for complementor and customer. In terms of Tier three, clients attracted to DMK International’s capability to delivery total solutions, DMK International should focus on improving their retention, because they have the potential to be upgraded to exclusive/strategic partners. Therefore, the significant dimensions in the performance metrics should be customer share of percentage of total revenue, customer retention rate, Customers switching costs and the number of customer acquired. See Figure 32 for Performance Metrics by Customer Segment. Figure 1: Performance Metrics for the Business Drivers of the Delta Model Best Product (Tier-4 customer) Total Customer Solutions (Tier-3 customer) System Lock-In (Tier-1 and 2 customer) Operational Effectiveness ( Cost Drivers) •Cost of engineer idle time - Breakdown by skills, years experience, level •Cost of training and retraining delivery •Channel cost -Average sale per account •Customer value chain •Impact on customer profit due to DMK services vs. competitors -% work completed per contractual terms -Year of customer tenure -# of customer complain •Cist in training, acquiring, retaining Business Relationship Managers for key accounts •Volume of transaction per service •Customer savings •Measures of affordability, availability, and acceptability Customer Targeting (Profit Drivers •Cost to serve clients per channel •Customer repeat rate •Profit breakdown -referral by clients -referral by JBCC -direct: pull&push -cross selling •Customer share of % of total revenue •Customer retention rate •Customers switching costs •# of customer acquired •# of key customer acquired and retained •Savings through collaboration initiatives •Profit from Center of Excellence initiative through knowledge-base consolidation Innovation (Renewal Drivers) •% of sale from new skills and new clien...
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This note was uploaded on 03/24/2014 for the course MGMT 15.904 taught by Professor Arnoldohax during the Fall '14 term at MIT.

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