|
| Course Name |
Participants
Trained |
No of
Trainings |
| Customer Value Management |
300 |
Not Specified |
Customer Value Management
Introduction
Most organisations focussing on
Quality Management Standards
(ISO 9000) and / or Total Quality
Management have declared Customer
Satisfaction or Customer Focus as the
centre piece of the Quality Policy.
 However, most of the organisations do not yet have an objective
method of measuring and monitoring customer satisfaction. More
often it is, customer complaints as the only index of customer
satisfaction. In fact, customer complaint is a reactive approach
which measures customer dissatisfaction, as the error has
already occurred.
In a highly competitive market in the USA, some of the well
known organisations like AT & T, General Electric, Westinghouse
and many others discovered to their surprise that even over 90%
level of customer satisfaction is no surety of retaining the
customer and the market share. Through years of research and
cooperative effort they developed a proactive method of
evaluating and managing Customer Value. This process helps
the organisation to be driven by market perceived value of its
total offerings consisting of benefits, functions and performance in
relation to the price, the cost and the profit.
Purpose
Customer Value Management
- Delighted Customers.
- Benchmarking against the Competitors.
- Identifying the right things.
- Team work by committed Employees.
- Enhance Market Share.
- Gaining Competitive Edge.
- Enables Competitive Strategic Planning.
To maximize customer value and enhance price
realisation for gaining competitive advantage.
Objectives
- To measure, monitor and enhance customer satisfaction in omparison to the competitors.
- To enhance price realisation by providing differentiation in total offerings at a reasonable cost.
- To develop a strategy for enhanced market share and sales realisation.
- For the total offerings in a particular product and market segment through proactive process.
Process
It is a three phase process using cross functional team drawn from various functions like marketing, sales, after sales, manufacturing, planning, design, quality, finance, information system, personnel etc. Sometimes when appropriate, representatives of dealers / distributors are included.
PHASE 1 |
Customer Satisfication Index
In workshop mode, the team develops the value structure, of total offerings of the organisation, consisting of product quality, product performance, packaging, technical support/ service, delivery, image etc. for the selected product and market segment.This is done from the customers’ perspective.
• Develop value structure consisting of the prioritised needs of the customer, its prioritisation and the organisations’performance as compared to the selected competitors. 
- For the total value offered, identify
- what is the total price perceived to be paid by the customer in comparison with the competition ?
- What is the total cost to the company in comparison with the competition ?
- Identify and prioritise improvement opportunities
- Select improvement projects, assign teams and prepare an overall plan for implementation.
Deliverables
A detailed report presenting the data, its analysis and recommendations includes:
- Value Structure
- Prioritised improvement opportunities.
- Value to Price Map.
- Value to Cost Map.
- Specific projects and teams assigned.
- An overall strategy for competitive edgeand implementation plan.
TIME
2 days of workshop with the cross functional team. 2 days of analysis and report preparation by the facilitators. |
PHASE 2
 |
- Validate the value structure through interactionwith a cross section of the customers eitherdirectly or through an indirect survey. Thisdepends upon the product and marketsegment.
- Update and modify the value structure, strategyand improvement plan.
DELIVERABLES
- Highlights blind spots, the paradigms anddeficiencies in the company’s perception of themarket. This can help in changing perceptionsof other product and market segments.
- Accurate value structure from customers viewpoint.
- Clarity in understanding of customers needs.
- Index of customer satisfaction.TIME
Depends upon the approach adapted for a particular product andmarket segments. Should be possible to complete in 4 to 8weeks. |
PHASE 3 |
The Competitive Edge
- Project teams to prepare detailed project plan, establish measures of evaluation, implementand monitor.
- modify and standardise various process esimpacted by the improvement projects.
- modify the marketing, sales and after salesprocesses to cover the “ Customer Value Management” needs.
DELIVERABLES
- Customer Value enhanced.
- Planned improvement in price realisation achieved.
- Competitive advantage gained.
- Increase in market share and sales contributions.
TIME
Varies depending upon the type of improvement projects identified, resources provided and the management commitment. |
During application in various organisations, TQMI has helped infocussing the improvement effort in line with market needs and hence led to improved customer satisfaction, price enhancement, competitive advantage and increased market share.TQMI prefers to be involved in all three phases for optimum benefits. However based on the organisational needs, Phase 1 can also be done as a stand alone project training.
 Success Stories
- Petroleum Products Distribution company enhanced customer value by 27% through improvement in service quality, reduction in waiting time while simultaneously reducing cost of operations.
- A Cement Manufacturer created an opportunity for32% improvement of Customer Value through redesigned sales and marketing Systems for improved service quality and improved packing and delivery process for improved customer loyalty and competitiveedge.
- A Bearing Manufacturer identified great opportunityfor enhancing customer value index by 47% through better packaging, greater interaction with customer and training of distributors, dealers and actual users.
- A Processed material manufacturer benchmarked the value, the price and the cost against the international competitor and developed a strategy to improve customer value by 45% in order to remain competitiveeven after the anticipated reduction in custom duty in the next two years.
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