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Customer Value Analysis FAQWhat do you mean by “customer experience management”? What do you mean by “customer experience management”? Customer experience management refers to the strategies used by an organization to enhance its competitive position by continually improving performance on the drivers that influence customers’ purchase behavior. What are the components or customer experience management? Customer experience management has two components—Voice of the Customer (VOC) and Customer Value Analysis (CVA). What is the difference between VOC and CVA? VOC refers to understanding customer needs and providing products and services to satisfy these needs. CVA refers to the methods and tools needed to ensure that these needs are satisfied in a way that provide the company with a competitive advantage Why are VOC and CVA both important components of an organization’s improvement toolkit? VOC ensures that a company stays in business by focusing on products and services that are important to customers. CVA ensures that a company excels by providing these products and services in a way that maximizes customers’ perceived value. Value can be quantitatively defined in different ways, but it is usually a measure of “Worth what paid for”—a trade-off between quality and price. Is there a sequence in which a company implement VOC and CVA? Companies first conduct VOC studies to understand customers’ needs. This is usually followed with CVA analysis to assess the company’s competitive position. Can VOC and CVA be implemented at the project level? VOC can be implemented for individual projects, or at the enterprise level. Since CVA deals with customers’ perceptions of the company as a whole, CVA studies are carried out at a business unit or product line level. A value map is a picture that represents customers’ perceptions of perceived value of a company. One scale on a value map is price and the other quality or performance. As part of a CVA analysis, customers’ perceptions of the company’s value and those of its competitors is displayed on the value map. This helps the company to determine the strategy it should employ (improve quality, reduce price, or both) to improve it’s relative value position. What kind of data is needed for a VOC analysis? Qualitative and quantitative data on stated and latent needs by customer segment. What is the difference between stated and latent needs? Stated needs are those that customers are willing and able to articulate in an interview or focus group discussion. Latent needs are those that customers do not state, either because they think that they are obvious, or because they themselves don’t know about these needs. How do we get data to identify latent needs? Through observational analysis rather than through inquiries. What kind of data is needed for CVA analysis? For CVA, we sample the entire market, not just the company’s customers. The data collection is therefore more complex. How do VOC and CVA support Lean Six Sigma and other process improvement efforts? VOC and CVA are important tools for Lean Six Sigma professionals. VOC analysis helps organizations to identify CTQs, or Critical-to-Quality requirements. All Lean Six Sigma projects need to focus on improving CTQs. CVA analysis points to improvements that are needed for organizations to achieve a competitive edge. CVA results provide therefore critical inputs to Lean Six Sigma project selection, which is an area of great importance for implementing successful Lean Six Sigma programs. For more information on Customer Value Analysis offerings, click below.Overview | Consulting | Products | FAQ
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