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Customer-Centric Cost Reduction: How to invest and improve profits without sacrificing your customers (Customer Strategy)
by Maurice FitzGerald
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This book is about customer-centric cost reduction, an apparent oxymoron. Faced with a profitability crisis or a need to find money to invest, most companies want to sort out their P&L first, and worry about keeping customers onside later. That approach has a tendency to produce a corporate death-spiral. While you may be sacrificing customer happiness in the short term, your competitors may not. They will make it their business to find out where you are cutting costs and how that affects your customers. They will then go in and empathize, taking share from you. You then wind up with a predictable but unanticipated revenue problem, just as your cost-cutting exercise finishes. So, the next round of cost reduction starts. And so on. There are only 3.5 ways of reducing costs. I will cover various methods of getting there, adding advice on how to avoid losing customers as you go about it. Maurice FitzGerald is graduated as an Industrial Engineer, and had a stopwatch in his hand on his first day of his first job. He recently retired from his role as VP of Customer Experience for Hewlett Packard Enterprise software. His career spanned 40 years with HP, Compaq, Digital Equipment Corporation and Blue Bell Apparel, the parent company of Wrangler jeans. In his last 10 years, he had strategy, customer experience and chief of staff roles on the HP EMEA leadership team and the corporate software leadership team. After his Bachelor’s degree in Psychology from the National University of Ireland, Peter went on to do his doctorate in Cognitive Psychology at Oxford University. Among the important things he learned was that he needed to paint with his left hand, rather than his right. He combined early work at the Max Planck Institute in Munich with the development of a successful career as an artist. He ultimately left psychology to work in the visual arts full-time, including thirteen years as the editor-in-chief of Ireland’s leading art magazine, Circa.
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