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The Dollarization Discipline: How Smart Companies Create Customer Value...and Profit from It by Robert Morris

The Dollarization Discipline: How Smart Companies Create Customer Value...and Profit from It
Jeffrey J. Fox and Richard C. Gregory
John Wiley & Sons

Fox and Gregory assert that the primary objective of a company should be to create value for its owners, and, that the best way to achieve that objective is to create maximum value for each customer. In this book, they explain both WHY and HOW to do that. In Section 1, they introduce Dollarization (e.g., Why Dollarize?); in Section 2, they identify and explain correlations between Dollarization and selling (e.g. How to shorten the sales cycle?); in Section 3, they do the same for Dollarization and marketing (e.g. How to price new products?); and then in Section 4, they recommend a number of strategies and tactics by which to apply various Dollarization techniques (e.g. constructing the Customer Value File). Once having read these separate but interconnected Sections, the reader is then introduced to ³The Dollarization Doctrine: Ten Rules to Successful Dollarization.² I presume to recommend that this Appendix (pages 249-251) be read before Section 1 and then re-read before reading each of the following three Sections. Presumably careful readers will highlight or underline key passages for purposes of review later. So I also presume to recommend that each review begin with a re-reading of the Appendix. The Rules which Fox and Gregory offer can -- and should -- guide and inform application of the Dollarization Discipline to any competitive marketplace. Throughout the narrative, Fox and Gregory include specific advice. For example, when beginning to determine the value created for a single customer or for an entire population of customers, follow these five steps: Identify your direct competition, articulate what differentiates you from the competition, identify all the ways your differentiating features benefit your customer, determine how to quantify those benefits, and then determine how the quantified benefits result in dollars-and-cents savings for the customer. (See Table 20.1 on page 207). Applications of the Dollarization Discipline are limited only by one¹s ability to recognize them.