Turning Service into Strategy:A Framework for the Private Label Industry Service Strategy for Private Label |Focus your service effort where it matters most Effective service managementis a key growth and efficiency driver in the PrivateLabel space. Amid rising costs and growing complexity, many companies offer broad serviceswithout clear ROI-missing opportunities to manage complexity and focus efforts. Common challenges include: ▪Unfocused effort: Intensive support for lower-value customers▪Low transparency: Unclear service usage and cost▪No monetization: High-value services offered for free, and not reflected in pricing This leaflet introduces our5-step approach to service strategy-helping you differentiate service, streamline delivery and turn support into strategy. Alexander Bilsing Service journey |The journey towards effective service management takes time and is a multi-step process Target state 1.Data-driven transparencyon service 'usage’(who, when,how often)2.'Standard'defined3.Services differentiated in▪Industry standard: not to be communicated▪Company standard: beyond industry standard, to becommunicated▪Value-adding:to be monetized4.Accessto value-adding servicessystematicallydifferentiatedalong customer segments5.Monetization of value-adding services(incl. definition ofmetrics and margin mark-ups) Starting point 1.Limited transparencyon service 'usage'(who, when, how often)2.No 'standard'defined3.Value-adding servicesnot explicitlydetermined4.Accessto value-adding servicesnotsystematically differentiatedbetweencustomers5.Selected servicesmonetized(in pricing orad hoc)on a case-by-case basis(depending on KAM, customer) Our solution |Structured service strategy along 5 steps 1.Transparency |Document the services and service levels you currently offer and expand the serviceportfolio based on trends and customer needs List of services and service levels 2. Differentiation |Categorize services and service levels: Industry standard, Company standard, Value-added 4.Monetization| Start monetizing serviceswith high internal cost and high customer value 5. Governance |Implement structured monitoring of service delivery and performance Monitoring status of value-add service levels today vs. after implementation Quick assessment |Is your service strategy where it should be? Simon-Kucher |We are the number 1 commercial advisor OUR MISSION We are the NUMBER 1Commercial advisor We are a GLOBAL consultingplayer focusing on growth We combine fourpowerhouses under one roof Our company Our expertise Simon-Kucher is the leading globalconsulting firm specializing inunlocking better growth. We provide local expert knowledge globallyincreasing long-term sales, value, and profit. For decades, Simon-Kucher has beensynonymous with pricing; we defined thediscipline, and it’s part of our DNA. Today,we are widely considered to be the world’sleading pricing consultancy. Simon-Kucher in private label |We have extensive experience partnering with leading players in the privatelabel industry Customers are highly satisfied with ourwork “Simon-Kucher proved to be the perfectpartner for our Commercial Excellencetransformation. We engaged them fortheir profound commercial expertise,but what truly set them apart was theircollaborative approach and unwaveringcommitment to ensuring sustainablesuccess for all stakeholders.” Contact us! www.simon-kucher.com Anna GreufeDirectorOffice Cologneanna.greufe@simon-kucher.com+49 170 4818 715 AlexanderBilsingPartner Office Colognealexander.bilsing@simon-kucher.com+49 173 5381 006