1. The document discusses customer value management (CVM), which is a process for developing value-based strategies to improve marketing, planning, positioning, pricing, and sales from a customer-centric perspective.
2. CVM aims to better understand what creates value for customers and how a company can provide superior value compared to competitors. It involves measuring customer perceptions of quality and value across attributes.
3. Implementing CVM can yield significant business benefits like increased profits, market share, and customer loyalty through more satisfied and retained customers. Leading companies are shifting their focus from satisfaction to delivering greater customer value.
Chapter 4 Creating Customer Value, Satisfaction, and LoyaltyNishant Agrawal
Creating Customer Value, Satisfaction, and Loyalty
Organizational Charts
What is Customer Perceived Value?
Determinants of Customer Perceived Value
Steps in a Customer Value Analysis
Measuring Satisfaction
What is Quality?
CRM is commonly described from a narrow technological perspective. CRM needs to be defined more broadly as a strategic approach that uses customer insight to create customer value and shareholder value. Slide 2: The CRM Strategy Framework identifies five cross functional processes that can be used to assess key tasks in using CRM effectively. Slide 3: For each of the five CRM cross functional processes there are two key questions that need to be addressed for CRM strategy to achieve its potential. The article provides an overview of the five processes. A later book provides an more extensive discussion of the five processes together with a detailed discussion relating to CRM implementation.
Chapter 4 Creating Customer Value, Satisfaction, and LoyaltyNishant Agrawal
Creating Customer Value, Satisfaction, and Loyalty
Organizational Charts
What is Customer Perceived Value?
Determinants of Customer Perceived Value
Steps in a Customer Value Analysis
Measuring Satisfaction
What is Quality?
CRM is commonly described from a narrow technological perspective. CRM needs to be defined more broadly as a strategic approach that uses customer insight to create customer value and shareholder value. Slide 2: The CRM Strategy Framework identifies five cross functional processes that can be used to assess key tasks in using CRM effectively. Slide 3: For each of the five CRM cross functional processes there are two key questions that need to be addressed for CRM strategy to achieve its potential. The article provides an overview of the five processes. A later book provides an more extensive discussion of the five processes together with a detailed discussion relating to CRM implementation.
CRM is a competitive strategy and process of acquiring, reacting and partnering with selective customers to create superior value for the company and the customer.
SALESMANSHIP
Mental stages of a customer in sales effort
Selling Process
Who is a prospect ?
Creative Salesmanship Competitive Salesmanship
K A S H
Close of sale
CRM is a competitive strategy and process of acquiring, reacting and partnering with selective customers to create superior value for the company and the customer.
SALESMANSHIP
Mental stages of a customer in sales effort
Selling Process
Who is a prospect ?
Creative Salesmanship Competitive Salesmanship
K A S H
Close of sale
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Slides from the workshop Value in Business Relationships - Identifying and measuring value in supplier relationships, held at Copenhagen Business School on 17 June 2014.
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https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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2. From anywhere… to anyone
Introduction to Customer Value Management
Presentation Objectives
•Define customer value management
(CVM),
•Understand the difference between
customer value and customer
satisfaction,
•describe key CVM concepts and tools,
and
•communicate the importance of
measuring quality in the eyes of your
clients.
3. From anywhere… to anyone
Introduction to Customer Value ManagementWHY invest in CVM?
To become a world leader in providing
innovative delivery solutions, creating
value for our customers, employees
and all customers
4. From anywhere… to anyone
Introduction to Customer Value Management
What is Customer Value?
Quality Price
VALUE
Source: Adapted from Customer Satisfaction in Practice by the American Productivity & Quality Center, 1998
5. From anywhere… to anyone
Introduction to Customer Value Management
Sub-attributes
Sub-attributes
Product
Quality
Customer
Service
Marketing
Sales
Order Fulfillment
Overall
Quality
Relative Price
Competitiveness
Overall Value
Satisfaction
Customer Value Defined
6. From anywhere… to anyone
Introduction to Customer Value Management
Quality
Attributes
Performance Rating
Importance
Weight
ABC XYZ
Product Information 50 6 8
Advertising and Promotion 20 6 7
Customer & Consultation 20 9 6
Customized Solutions 10 8 7
100
7. From anywhere… to anyone
Introduction to Customer Value Management
Stage One Stage Two Stage Three Stage Four
Minimum
Requirements
Customer
Focus
Customer
Attitudes
Competitive Focus on
Targeted Markets
Conformance Quality
• Delivering what we
promise
• Meeting standards
Customer
Satisfaction
• Providing what
customers want
• Responding to
customer complaints
Customer
Loyalty
• Retaining our
customers
• Getting them to
recommend us
Customer
Value
• Meeting critical
needs of targeted
customers
• Outperforming
competitors
• Creating new, unique
benefits
21st Century
Growth
Company
Source: Adapted from Managing Customer Value by Bradley T. Gale, (New York, The Free Press, 1994)
8. From anywhere… to anyone
Introduction to Customer Value Management
I can’t get no (customer) satisfaction…
•Satisfaction in itself does not lead to customer loyalty
•Positive empirical relationship between value focus and
link to market share
Where are leading-edge companies headed?
Satisfaction
=
Satisfy Existing
Customers Better
Value
=
•Improve Your
Competitive Position
•Attract and Retain
Targeted Customers
9. From anywhere… to anyone
Introduction to Customer Value Management
Satisfaction
Current
Service
The Entire
Customer
Relationship
Lag Indicator
Lead
Indicator
Company
Performance
Company Vs.
Competition
Tenuous Link
to Business
Performance
Proven
Relationship to
Business
Performance
Value
10. From anywhere… to anyone
Introduction to Customer Value Management
INPUTS
•Customer Value Management Council
•External/Internal Data Sources
OUTPUTS
• Customer Value Tools and Data
• Competitive Value Proposition
• Customer Loyalty and Market Share
Analysis
GOAL
To establish CVM as a core competence for the
Canada Post Group of Companies.
KEY MEASUREMENTS
Customer Loyalty Market Share Profitability Customer Retention
DEFINITION
Customer Value Management is a process designed to develop and execute
value-based strategies which impact marketing, strategic planning, competitive
positioning, branding, pricing, and selling.
11. From anywhere… to anyone
Introduction to Customer Value Management
Ideal
Customer
Value
Process
Capabilities
Performance
Improvement
CUSTOMER-CENTRIC
12. From anywhere… to anyone
Introduction to Customer Value Management
1. Assess Market
Opportunity
2. Conduct
Analysis
3. Commit to a
Value Proposition
4. Measure and
Reward
Performance
Customer Value Management
13. From anywhere… to anyone
Introduction to Customer Value Management
Value Analysis Tools
Value Scorecard
Performance Scores Weights for:
Dimension Attribute
Filto
Walter
Envir
Brite
Clarion
Average
Attrib. Value
Benefits Product Chloroform Removal 10.0 10.0 2.0 10.0 2.0 6.8 12.0
Lead Removal 10.0 10.0 10.0 8.0 10.0 9.6 10.0
Taste 8.0 10.0 8.0 6.0 6.0 7.6 9.0
Clogging 8.0 2.0 10.0 4.0 8.0 6.4 25.0
Service Reliable supply 5.0 5.0 7.0 9.0 9.0 7.0 16.0
Technical spport 2.0 1.0 3.0 1.0 7.0 2.8 14.0
RelationshipRelationship 7.0 9.0 5.0 5.0 9.0 7.0 14.0
Weighted benefit scores 7.0 5.8 6.7 5.8 7.5 6.6 98.3
Costs Selling priceCapital cost 17 40 30 37 25 30 100.0
Other costs Disposibles cost 120 160 54 85 130 110 100.0
Weighted cost scores 137 200 84 122 155 140 -1.7
Value Map for Commercial Filtration -- Base
Envir
Walter
Filto
Brite
Clarion
60
80
100
120
140
160
180
200
220
5.6 6.0 6.4 6.8 7.2 7.6
Performance
Price
($)
High
Cost
Filto Value Relative to Average
-25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0
Chloroform Removal
Lead Removal
Taste
Clogging
Reliable supply
Technical spport
Relationship
Capital cost
Disposibles cost
Relative value impacts - Filto vs. Average
Differential worth of performance advantages and disadvantages
Dimension Attribute
Filto
Walter
Envir
Brite
Clarion
Average
Benefits Product Chloroform Removal 22 22 -34 22 -34 0
Lead Removal 2 2 2 -9 2 0
Taste 2 13 2 -8 -8 0
Clogging 23 -64 53 -35 23 0
Service Reliable supply -19 -19 0 19 19 0
Technical spport -7 -15 2 -15 34 0
Relationship Relationship 0 16 -16 -16 16 0
(a) Total differential worth of benefits 25 -44 9 -43 53 0
Costs Selling price Capital cost 13 -10 0 -7 5 0
Other costs Disposibles cost -10 -50 56 25 -20 0
(b) Total cost advantage 3 -60 56 18 -15 0
Price Performance Profile
Value Map
Head-to-Head Comparisons
14. From anywhere… to anyone
Introduction to Customer Value Management
Price Performance Profile
Performance Scores Weights for:
Dimension Attribute
Filtro
Walter
Envir
Brite
Clarion
Average
Attrib. Value
Benefits Product Chloroform Removal 10.0 10.0 2.0 10.0 2.0 6.8 12.0
Lead Removal 10.0 10.0 10.0 8.0 10.0 9.6 10.0
Taste 8.0 10.0 8.0 6.0 6.0 7.6 9.0
Clogging 8.0 2.0 10.0 4.0 8.0 6.4 25.0
Service Reliable supply 5.0 5.0 7.0 9.0 9.0 7.0 16.0
Technical support 2.0 1.0 3.0 1.0 7.0 2.8 14.0
Relationship Relationship 7.0 9.0 5.0 5.0 9.0 7.0 14.0
Weighted benefit scores 7.0 5.8 6.7 5.8 7.5 6.6 98.3
Costs Selling price Capital cost 17 40 30 37 25 30 100.0
Other costs Disposibles cost 120 160 54 85 130 110 100.0
Weighted cost scores 137 200 84 122 155 140 -1.7
Slope of fair value line 58.5032
15. From anywhere… to anyone
Introduction to Customer Value Management
Value Map Value Map for Commercial Filtration -- Base
Envir
Walter
Filtro
Brite
Clarion
60
80
100
120
140
160
180
200
220
5.6 6.0 6.4 6.8 7.2 7.6
Performance
Price
($)
High
Cost
16. From anywhere… to anyone
Introduction to Customer Value Management
Value Scorecard
Differential worth of performance advantages and disadvantages
Dimension Attribute
Filtro
Walter
Envir
Brite
Clarion
Average
Benefits Product Chloroform Removal 22 22 -34 22 -34 0
Lead Removal 2 2 2 -9 2 0
Taste 2 13 2 -8 -8 0
Clogging 23 -64 53 -35 23 0
Service Reliable supply -19 -19 0 19 19 0
Technical support -7 -15 2 -15 34 0
Relationship Relationship 0 16 -16 -16 16 0
(a) Total differential worth of benefits 25 -44 9 -43 53 0
Costs Selling price Capital cost 13 -10 0 -7 5 0
Other costs Disposibles cost -10 -50 56 25 -20 0
(b) Total cost advantage 3 -60 56 18 -15 0
(c) Total value advantage = (a)+(b) 28 -104 64 -25 38 0
(d) Actual price (or cost) 137 200 84 122 155 140
(e) Fair Value Price = (a) + (average price, 140 ) 165 96 148 97 193 140
(f) Total value advantage = (e)-(d) 28 -104 64 -25 38 0
17. From anywhere… to anyone
Introduction to Customer Value Management
Head-to-Head Comparisons (Average)
Filtro Value Relative to Average
-25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0
Chloroform Removal
Lead Removal
Taste
Clogging
Reliable supply
Technical support
Relationship
Capital cost
Disposibles cost
Relative value impacts - Filto vs. Average
18. From anywhere… to anyone
Introduction to Customer Value Management
Identify
Value
Drivers
Measure
Value Creation
After
Transaction
Business
Process
Improvement
Conduct
Baseline
Study
On-going
Transactional
Surveys
Develop
Action
Plans
Measure
Market
Perception
On-going
Market
Surveys
feedback
19. From anywhere… to anyone
Introduction to Customer Value Management
The Value Proposition
Deployment Process
Define/
Refine
Value
Proposition
Build
Commitment
To
Value
Proposition
Process &
Organization
Gap
Analysis
Changes
To Deliver
Value
Proposition
Internal
Tracking
&
Measurement
Tracking
Market
Impact
Plan/Do/Check/Act
Plan/Do/Check/Act
Internal
Management/
Staff
Group of
Companies
20. From anywhere… to anyone
Introduction to Customer Value Management
Customer Value Yields Big Dividends
• Doubled profits in a
single year
• Moved from being a
market “nicher” to the
market leader
Wireless Telecom
Company
Heavy Equipment
Dealership
Underground Mining
Equipment
Manufacturer /
Distributor
International Health
and Leisure Firm
• 50% reduction in
customer churn
• Improved equipment
delivery time from 10
days to 2 days
• Total estimated bottom
line contribution = $4.5M
• Doubled sales revenue –
from $250M to $500M+
• Tripled market share in a
strategically important
market: 4% - 12%
• Increased employees from
600 to 1000+
• Achieved record
profitability last year
• Reclaimed more
than $8mm in lost
sales
• 30% improvement
in on-time
deliveries
• Improved margins
on equipment
repairs from 11%
to 28%
Source: Adapted from Customer Satisfaction in Practice by the American Productivity & Quality Center, 1998
21. From anywhere… to anyone
Introduction to Customer Value Management
MODELING
EMPLOYEE VALUE
The Right
Workforce”
Positive
Turnover
AcquisitionRetention
Employee
Value
Relative
Compensation
Relative Job
Quality
Base
Salary
Work
Life Balance
Brand
Equity
Manager
Quality
BenefitsBonusPay
Equity
22. From anywhere… to anyone
Introduction to Customer Value Management
The “Value” of Customer Value
• Strengthen value propositions – value is
the basis for customer decisions
• Identify responses with the greatest
impact on customers’ future purchase
behaviour
• Hone in on winning client strategies
• Discipline and focus—across all functions
• Dramatic impacts and performance gains
The key to attracting,
satisfying, and retaining
customers.