PowerPoint PresentationFrom anywhere… to anyone
Presentation Objectives
Understand the difference between customer value and customer satisfaction,
describe key CVM concepts and tools, and
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WHY invest in CVM?
Canada Post will be a world leader in providing innovative physical and electronic delivery solutions, creating value for our customers, employees
and all Canadians
What is Customer Value?
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Customer Value Defined
Quality Attributes
Performance Rating
Importance Weight
Stage One
Stage Two
Stage Three
Stage Four
Conformance Quality
Customer
Value
Outperforming competitors
Creating new, unique benefits
21st Century Growth Company
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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
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Satisfaction
Current
Service
Value
INPUTS
Competitive Value Proposition
GOAL
Canada Post Group of Companies.
KEY MEASUREMENTS
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.
12
Ideal Customer Value
Assess Market Opportunity
2. Conduct Analysis
4. Measure and Reward Performance
Customer Value Management
Value Analysis Tools
Price Performance Profile
Value Map
Value Scorecard
Head-to-Head Comparisons (Average)
Identify
Value
Drivers
Measure
Define/
Refine
Value
Proposition
Build
Commitment
To
Value
Proposition
Process &
Organization
Gap
Analysis
Changes
Doubled profits in a single year
Moved from being a market “nicher” to the market leader
Wireless Telecom Company
Heavy Equipment Dealership
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%
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MODELING
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.
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From anywhere… to anyone
58.5032
Envir
Walter
Filto
Brite
Clarion
60
80
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120
140
160
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220
5.6
6.0
6.4
6.8
7.2
7.6
Performance
Price
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
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30.0
Differential worth of performance advantages and disadvantages
Dimension
Attribute
Filto
Walter
Envir
Brite
Clarion
Average
Benefits
Product
25
-44
9
-43
53
0
Costs
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
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Differential worth of performance advantages and disadvantages
Dimension
Attribute
Filtro
Walter
Envir
Brite
Clarion
Average
Benefits
Product
25
-44
9
-43
53
0
Costs
28
-104
64
-25
38
0
137
200
84
122
155
140
165
96
148
97
193
140
28
-104
64
-25
38
0