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8 Building Blocks for Customer Advisory Board Success
1.
Eight Building Blocks
for CAB Success Sean Geehan Founder Geehan Group sean@geehangroup.com sean@geehangroup com Twitter: @seangeehan Copyright © 2011 Geehan Group. All Rights Reserved Page 1
2.
Additional CAB resources
Please visit our inventory of over 100 blogs and articles on CAB best practices: http://blog.geehangroup.com/blog/geehan-group Copyright © 2011 Geehan Group. All Rights Reserved Page 2
3.
8 Building Blocks
for Success 1 Executive Involvement 2 Connection to Strategy 3 Membership Design 4 Member Recruiting/Commitment 5 Content Design 6 Meeting Experience 7 Follow Up Actions 8 Results Copyright © 2011 Geehan Group. All Rights Reserved Page 3
4.
Membership Design, Recruiting
& Retirement Which customers should you invite? How do you position with your customers? How many members should you have? How often should you rotate membership? How should you reward customer participation? Copyright © 2011 Geehan Group. All Rights Reserved Page 4
5.
Who to Invite
Determine what companies (not individuals) are most strategic to your success Biggest revenue, most potential for growth, innovator, culture of collaboration, configuration Define the optimal mix, skills and experience for D fi th ti l i kill d i f Board members Grouping by discipline is the most common – be careful about mixing levels (discussions will go to the lowest common denominator) Cross disciplines (level appropriate) also provide an added dimension and perspective, e.g. CIO, CMO, CFO Copyright © 2011 Geehan Group. All Rights Reserved Page 5
6.
Aim high to
maximize value Decision Maker CIO/CTO Drive Change Set Direction Influencer Director/Vice President Run the Business u us ss Business Process User Managers Execute Features/Functions Workflow/Productivity Copyright © 2011 Geehan Group. All Rights Reserved Page 6
7.
Positioning Membership with
Customers A seat at the table to influence the strategy/ direction of a key supplier Share candid feedback on services, offerings, solutions and business models with senior executives i An opportunity to collaborate on co-developing/ innovating solutions l Network and socialize with peers and industry experts Share best practices and learning Copyright © 2011 Geehan Group. All Rights Reserved Page 7
8.
How Many Members?
For productive and objective discussions: 12-18 at face-to-face meetings Not all members will be available to attend every meeting Consider the geographical make-up of your board Local (driving distance); Regional (Americas, EMEA, APAC) or Global Attend Recruit Accept Meeting Global Board 32-38 32 38 22-24 22 24 12-18 12 18 Regional Board 25-30 18-20 12-18 Local Board l d 25-30 2 30 18-25 8 2 14-18 8 Copyright © 2011 Geehan Group. All Rights Reserved Page 8
9.
Ways to Reward
Customer Participation Customer Rewards Spousal programs 6% Cover transportation to and from the meetings 35% Include leisure activities at meeting 41% Coordinate with other industry events 31% Meetings held at upscale hotel and location 65% Honorarium 7% % From a Survey conducted by Geehan and Clearworks, 60 respondents (90% in charge of a CAB), gave feedback regarding the ways CAB members are rewarded Copyright © 2011 Geehan Group. All Rights Reserved Page 9
10.
Advisory Board Travel Breakdown
Wheels-to-wheels 15% Pay Everything except 40% Honorarium 20% y y g g Pay Everything Including Honorarium 25% Customer Pays Everything except Meals Copyright © 2011 Geehan Group. All Rights Reserved Page 10
11.
Recruiting Members to
Your CAB Executive Sponsor Leadership Identify right internal recruiters to contact candidates Validate list of candidates with recruiters, matching those with the best relationship Develop T lki D l Talking P i t f recruiters t follow to Points for it to f ll t ensure a consistent approach Provide supporting materials Charter, One pager, FAQs Copyright © 2011 Geehan Group. All Rights Reserved Page 11
12.
Recruiting
Key Activities Checklist Based on the Priority Issues to be addressed by the B d h P i i I b dd db h Board, define the optimal mix of members and perspectives needed Identify the customer companies to be included on the Advisory Board Identify recruiting agents for each candidate/company Develop a Recruiting Communications Plan and approach (who will be involved; the message; documents to develop) Publish and distribute documentation to recruiting agents and key stakeholders; follow-up with training call Copyright © 2011 Geehan Group. All Rights Reserved Page 12
13.
“Overall sales increased
21% during the recession when o ecession hen our competito s were competitors e e flat or sales went down.” - Vineet Nayar CEO HCL Nayar, CEO, HCL’s Customer Advisory Council Reference accounts increased 200% Customer satisfaction increased 25% Thought Leadership commitments – 30% participation Copyright © 2011 Geehan Group. All Rights Reserved Page 13
14.
Key ROI of
CABs Decision Maker Levels No CABs Have CABs Retention 72% 90% Account Growth 4% 12% Reference-able 28% 94% Copyright © 2011 Geehan Group. All Rights Reserved Page 14
15.
What Keeps Them
Coming Back? Feeling of time well spent/productive discussion Host company did a good job of listening to customer feedback and probing for clarification Meeting i l d d opportunities f networking M i included i i for ki Opportunity to drive change/influence direction Improvement in services/offerings/solutions/business models Ongoing communication of next steps/actions Opportunities to engage between meetings pp g g g Copyright © 2011 Geehan Group. All Rights Reserved Page 15
16.
Five Tips to
World-Class 1. The Power is in the Perspective: Recruit the right people t provide the input you actually need—often it’s l to id th i t t ll d ft it’ not who you already know. 2. Content is King: Discussions must be relevant to all g participants or they won’t be as valuable (or worth coming back for) 3. 3 80/20: You are there to listen and learn Your learn. customers/prospects should be talking 80% of the time. 4. Follow-up, track and report: Keep a score card on program and be completely transparent about progress progress. 5. Event to Initiative: Continuous engagement throughout the year. Copyright © 2011 Geehan Group. All Rights Reserved Page 16
17.
Sean G h
S Geehan sean@geehangroup.com Follow me on Twitter: @seangeehan @ h Visit our website: www.geehangroup.com Copyright © 2011 Geehan Group. All Rights Reserved Page 17