4.1 Choosing customers
Think about your own organisation – or your own experiences as a customer. I'm sure you'll agree that, over the last few years, customers have become very sophisticated. They expect higher standards, lower costs, and a wide range of goods and services that are provided at their convenience. If an organisation does not provide what they want, they find one that can.
Most companies have experienced changes in their markets, such as new customer demands and expectations, and new competitors, often unconventional ones.
These changes in buyer-seller relationships are making it difficult for organisations to satisfy all their customers in all their markets. T&W found that successful organisations chose groups of customers within their markets and offered them superior value. They call this a company's value proposition and defined it as follows.
The implicit promise a company makes to customers to deliver a particular combination of values – price, quality, performance, selection, convenience, service, and so on.
(Treacy and Wiersema, 1996, p. xiv)