An Actionable Business Operating System
Here’s why you need to know this:
Mid-life, middle-market companies face unique challenges regarding enterprise value acceleration. Most consulting and business operating models focus on outcomes around specific productivity, efficiency, organizational development, or growth levers. These add incremental value but don’t deliver sustainable scaling – which is the key to achieving sustainable enterprise value acceleration.
Here’s the takeaway:
There is a powerful, proven business operating system, SmartScale℠, that leverages a uniquely advantageous approach to enterprise value acceleration. This business operating system, built on the four cornerstones of customer loyalty, technology, and organizational transformation, delivers category-creator-driven sustainable scaling.
- Customer Loyalty: Companies that SmartScale℠ use customer loyalty to identify their most valuable customers and develop targeted strategies to increase their loyalty and engagement. Companies can identify category creation and leadership opportunities by focusing on high-value customers. Additionally, they have the data to:
- Accelerate innovation,
- Reduce customer acquisition costs,
- Increase customer share of wallet,
- Increase customer retention rates,
- Reduce churn,
- Increase their profitability, and ultimately
- Accelerate growth.
- Technology: Companies that SmartScale℠ leverage technology to:
- Streamline processes,
- Optimize their operations,
- Utilize data to drive innovation, improve customer experiences, accelerate decision-making, and guide performance.
By implementing technologies such as data repositories, automation, artificial intelligence, and analytics, companies that SmartScale℠ increase their creativity and effectiveness, reduce costs, and deliver more valuable experiences that improve customer loyalty and increase Customer Lifetime Value.
- Organization evolution operating model: A business evolution operating model involves defining the value-acceleration path and continuously evaluating and improving a company’s:
- Talent,
- Processes,
- Systems,
- Organization structure, and
- Strategies to achieve Category Leadership through changing the game to gain competitive advantage, ultimately accelerating their growth and scalability.
- Category Creation – and Leadership: Category leadership refers to a company’s ability to establish itself as the dominant player in a product or service class. The most efficient way to become a category leader is to build on the insights from an existing customer base and use those insights to define a new category. Research proves that firms that are instrumental in creating a category experience much faster growth and receive much higher valuations from investors than companies bringing only incremental innovations to market.
Much research supports the idea that using customer lifetime value (CLV), technology, or an effective operating model can accelerate enterprise value. Here are a few examples:
- A study by Harvard Business Review found that companies that were able to increase customer retention rates by 5% saw a 25% to 95% increase in profits. Businesses can increase CLV and improve profitability by leveraging technology and data analysis to improve customer experiences and loyalty.
- A report by McKinsey & Company found that businesses that invested in digital transformation and used technology to optimize operations and customer experiences saw an average 12% increase in revenue growth and a 9% increase in profit margins. Businesses can increase enterprise value by leveraging technology to improve efficiency and customer experiences.
- A study by the Aberdeen Group found that companies that used data analysis to improve customer experiences and engagement saw a 10% increase in customer retention rates and a 15% increase in CLV. By using technology to collect and analyze customer data, businesses can improve customer experiences and increase CLV, ultimately increasing enterprise value.
- A report by Bain & Company found that companies that increased customer loyalty by 5% saw a 25% to 95% increase in profits. By leveraging technology and an effective operating model to improve customer experiences and loyalty, businesses can increase CLV and profitability, ultimately increasing enterprise value.
SmartScale℠ is the only proven business operating system for mid-life, middle-market companies that want to achieve scale through continuously growing a customer base with rising lifetime value.
What to do:
Take the assessment located here. Using the insights, we will structure a conversation to explore how much value your organization would receive from committing to our mid-market, mid-life business accelerator.
Go Deeper:
If you want greater detail, check out The Mid-Life Business Acceleration Story: A New Perspective on Disruptive Transformation and Exponential Growth.
