Importance & essentiality of Customer Value Creation
Untapped value for all parties is common due to the absence of clarity on customer perceptions of value, which is a composite of his or her functional and emotional judgments of your product, service, brand, culture, processes, policies, and business model — all relative to what the customer is striving to do. A keen understanding of customers’ subconscious value equations and perceptions is essential to zeroing-in on management efforts yielding highest return on investment (ROI). Yet most customer research focuses on brand recommendation and sentiment or new product development. Customer value is typically implied, or awkwardly derived from questions about price expectations, or simply assumed. However, Customer Value Management supplies tried-and-true methodologies for discovering how customers think about specific value relative to your competitors and to their expectations.
Customer Value Chain
Another reason for untapped value is weak management of the inter-dependencies among entities in the value creation and delivery chain. Traditional thinking charges R&D with value creation, but in reality, the customer experience is impacted even by your support functions’ internal and external policies. In fact, everyone in the company, including suppliers and alliance and channel partners, plays a role in the snowball effect of decisions and hand-offs that eventually shape the entire customer experience.
Customer Value Techniques
- Total Customer Value Management,
- Customer Value Creation,
- Customer Value Measurement,
- Pricing & Customer Value.
Should Customer-Value-Added (CVA) be included in your financial statements? What are the customer-focus and value creation roles of your CFO, Head of HR, and other top execs? How can you recognize gaps in customer-centricity that invite competitive footholds?
By seeing value the way customers see it leaders gain the context for collaborative value generation that offers sustainable differentiation and is rewarded by the market place.