Understanding the change in customer needsRichard Ferrers, ANDS Research Data Analyst

May 2013

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Understanding the change in customer needs

1.Understanding what customers value in a service environment: Australian National Data Service

2.Measuring perceived customer value; sensing customer value

3.Exploring what value means for your customers: Case Study - 3G Mobile phones 2004 - 2009

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Business Analytics: Value vs Assets

Statement of Accounting concepts (SAC4); assets are measureable; reliable; objective...

assets are: probable future benefit, cost/value measure reliably

assets are: controlled by the entity

Value is subjective; relative, dynamic, social, experiential, constructed, emotional (Ferrers 2007, 2011, 2013)

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What is value?Aristotle: utility, exchange, conspicuous consumption (Gordon 1964)

Marx (1865): labour theory of value (V)

Bailey (1825): V in the eye of the beholder; subjective

Sveiby (1997): tangibles plus intangibles in SHV

Vargo and Lusch (2004): V conversation, service dominant logic

Kim and Mauborgne (2005): multiple dimensions of V

Ferrers (2013): Needs are a dimension of value (1/12)4

Value: Theory and Practice

Theory: 3G mobile phone study, UQ Business School PhD

Practice: ANDS service organisation: project funded

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Who are ANDS.org.au: Australian National Data Service?

customers: Public Sector and Universities, Department

goal: more researchers reusing research data more often - make Australian research data collections more valuable by managing, connecting, enabling discovery and supporting the reuse of this data

funding: $75 million from Dept. of Industry, Innovation, Climate Change, Science and Research

resources: 50 staff, five states

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1.Problems of Analysis: Measuring Value at ANDS

Project with budgetted expenditure and Business plan activity: need demonstrations of VALUE to show worth

No revenue: proxy for customer value

No market value: proxy for shareholder value

No balance sheet

Cashflow

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2.Measuring/Perceiving Value at ANDS

Customer contribution: co-investment

subjective: customer satisfaction

examples: publish in newsletter <add ClientFeedback>

Service Usage: web traffic, video downloads, most viewed pages, pdfs

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Process of tracing Value at ANDS

Issues Register; documenting issues (245)

Client Liaison Officers; face to face customer contact

GoTo Meeting; webinars, meetings; virtual contact

Monthly Informals; face to face customer community

eResearch Australasia annual conference

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Issues Register: Value Management in action

from Progress and Final Reports

Section to comment on:

- issues needing ANDS facilitation

- issues need direct advice and support

- achievements to share

Director's review; traffic lights, keywords, weekly review, follow up action

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3.Understanding Consumers' value: 3G

What do consumer’s value? Value is complex

12 value meanings; <a Rose Window>

80 value elements; Appendix of thesis (Ferrers 2013)

A simple example:

Consumer quotes: Value is dynamic ("wasting all my money", "liked it")

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Implications of Value for Managers

Manage value alongside sales and profit; value metrics

Engage customers in a value conversation; discover value

Sense and respond to changes in customer value; value management

Lead customers to better value; value leadership

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More at:

valman.blogspot.com ...Continue the conversation...

richard.ferrers@ands.org.au

- areff2000@yahoo.com.au (...Consulting...)

- PhD thesis at: figshare (200 pp.)

http://dx.doi.org/10.6084/m9.figshare.680002

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