Introduction
In a highly competitive environment, offering unique products to diversely segmented customers are imperative to gain and retain leadership in business performance. In this context understanding and offering customer value better than the competitors at an attractive price point is imperative. Each product segment for each market segment will have a unique value structure and value proposition.
Customer Value Creation is a methodology to understand, plan and deliver value to the customer that he is willing to pay for. Most companies are struggling to measure, monitor, and subjectively improve customer satisfaction. Often customer satisfaction becomes the main driver. This at best is a reactive process to reduce customer dissatisfaction.
Objectives
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To enhance price realization by providing differentiation in total offerings at a reasonable cost.
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To develop a strategy for enhanced market share and sales realization.
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To measure, monitor, and enhance customer value in comparison to the competitors.
Purpose
To maximize customer value to enhance market share
and/or price realization for gaining competitive advantage,
thereby contributing to corporate value.
Process
It is a three-phase process using a cross-functional team drawn
from various functions like marketing, sales, aftersales,
manufacturing, planning, design, quality, finance, information
the system, personnel, etc. Sometimes when appropriate,
representatives of dealers/distributors are included.
Benefits
Create corporate value through
customer value
In a highly competitive market in the developed countries, some of the well-known organizations 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 a proactive method of evaluating, managing, and creating ‘Customer Value’ has been developed. This process helps the organization to be driven by the market perceived value of its total offerings consisting of benefits, functions, and performance to the price, the cost, and the profit.
Be a Market Leader
Without corporate value, there is nothing that can be distributed to various stakeholders.
The surest way to create corporate value is to deliver customer value better than the competitors.
The mission of most organizations is to distribute benefits (value) to stakeholders, employees, customers, suppliers, society
Create Corporate Value
Create Customer Value
