Customer Alignment

The continuing shift of the cost burden from the retailer to the supplier, combined with the growing power of the retailer, the store and the shopper, requires a disciplined approach to the management of customer relationships. In this environment there must be a customer alignment strategy that aligns with the corporate strategic plan; there must be alignment of brand strategies and tactics with those of the customer; there must be a value proposition that creates competitive advantage; and resource allocation guidelines must be aligned with the size of the opportunity and anticipated return on investment.

When we ask the question “Do you have a formal customer relationship strategy and plan? The typical reaction is silence, with managers looking at each other waiting for the other to answer, and then… “Well no, not a formal plan”.

CPG manufacturers who do not address this issue will experience an increasing gap between customer relationship desired outcomes and actual results. Going forward, the development of a formal customer relationship strategy and plan should be a priority.

Strategic Customer Alignment Model^SM

WWA’s Strategic Customer Alignment Model^SMis a comprehensive approach to how an organization defines, aligns and manages their customer relationships to drive profitable growth

The Reasons Why

Accelerates transformation from transactional selling to strategic customer development
Enhances the overall value proposition
Ensures alignment of CPG brand and retailer objectives, strategies and tactics
Prioritizes strategies and tactics for capability development and resource allocation
Aligns allocation of resources with customer segmentation
Establishes the parameters for cross functional alignment and collaboration
Guides the customer annual planning process

We begin development of the Customer Alignment Strategy and Plan by assessing those environmental factors and internal capabilities that provide the strategic foundation. This includes environmental factors such as size of market, trends, importance of the category to the retailer, importance of segments, brands, flavors and sizes etc. We examine the competitive environment and retailer attitudes and capabilities in a number of areas. The internal capabilities assessment also focuses on market, category and brand dynamics as well as on organization structure, roles and alignment; customer relationships and alignment; category management capabilities, customer planning processes, shopper insights/marketing capabilities, trade promotion management, organizational skills and technology support.

We then benchmark the assessment findings against WWA’s Shopper Centric Critical Success Factors. This leads to identification of key points of leverage, development of the customer value proposition/value-added offering and core go-to-market strategies. Required actions are developed for each core strategy along with a prioritized implementation plan.

The resulting Customer Alignment Strategy and Plan enables a CPG manufacturer to better align brand strategies and tactics with those of the customer; it provides a value proposition that creates competitive advantage; it aligns planning across functions and from top down to the customer; and it guides the efficient allocation of resources across customers and channels. Importantly, it positions a company to achieve its desired sales and profit objectives on a customer by customer basis, and in total.

Guiding Principles for Approaching Customer Alignment

The following outlines our guiding principles for approaching customer alignment:

Build and Maintain Brand Loyalty with Consumers:
Strong consumer loyalty to a brand provides a framework for effective customer and category management go-to-market initiatives. We believe that a fine balance must be maintained between investment toward the customer and investment toward the consumer.
Treat Top Customers as a Business Unit:
The same disciplines applied to managing a brand franchise should be applied to managing the top tier of customers. The Customer Management Strategy and Plan provides a foundation for developing these disciplines and allocating resources for the greatest return on investment.
Implement Solutions with Customer Perspective:
Our approach is to enhance a CPG manufacturer’s capabilities in alignment with the needs of the customer. This approach also enables our clients to profitably grow category/brand sales.
Utilize an Integrated Organizational Philosophy:
The organization must be aligned to meet the specific needs and requirements of its major customers. Cross-functional processes must be aligned to support cross-functional interdependence.
Manage Based on Value-Focused Practicality:
Value-based management focuses on the efficient use of resources for the mutual benefit of the supplier and retailer; identification of the best opportunities provide for the best potential return on investment.

Our Experience and Expertise
We have developed Customer Alignment Strategies and Plans for dozens of CPG manufacturer clients ranging from $300 million to over $8 billion in sales. Our extensive operating and consulting experience with both manufacturers and retailers ensures solution’s that will drive maximum leverage and return on investment for resources deployed across channels and customers. The strategic clarity resulting from the work has driven enhanced performance for our clients in the short run as well as the long term.