CUSTOMER VALUE RESEARCH AND ANALYSIS
CALCULATING CUSTOMER LIFE TIME VALUE: STRATEGIES FOR DELIVERING CUSTOMER VALUE
Creatingvalue proposition strategy, corporate branding, andbrand equity definition arevalue chain management strategies for delivering customer value in the customer loyalty sector. As enterprises strive to remain competitive, many are redoubling their efforts at satisfying customers and following the business mantra the "customer is king". Unfortunately, such well-intended single-minded determination can lead to distressingly poor results. Some enterprises are quickly learning that not all customers are created equal; some are inherently more profitable than others. Some are the kinds of customers you want to continue to acquire; others you should avoid at all costs. As the science of customer satisfaction, value, and loyalty becomes more exacting, prior decisions and assumptions must be re-evaluated and reconsidered.
At , ourCustomer Value Research and Analysis challenges conventional thinking and acts as a catalyst for action. Our wide range of professional services in this area probes numerous issues related to satisfaction, loyalty, product and service offerings, value propositions, brand equity, web site optimization, search engine optimization (seo),calculating customer life time value, and the direction of value flow. Two basic assumptions underlie our customer value work.
First, one strategy for delivering customer value is to recognize that not every customer is necessarily a good customer for your enterprise. The economics of customer satisfaction and loyalty have proven time and again that some customers are simply better to do business with than others. They are more profitable, less price sensitive, more forgiving, and more loyal.
The second assumption underpinning our work is the belief customer satisfaction is a multi-dimensional equation. Often times, very satisfied customers will simply stop doing business with your enterprise. What really matters are two other important variables which impact the relationship your customers enjoy with your enterprise. The first is the perception of value customers have of your enterprise. Customer perception comprises expectations compared against actual experiences. It is possible for customers to be satisfied with your enterprise yet have a relativity low perception of the value you provide. This, of course, impacts the other crucial variable which we define as repeat purchase intention. A customer’s willingness to ‘do business’ with you again is perhaps the single best indication of the value you offer. It is particularly important because repeat business is substantially less expensive to sell and service than newly developed business. And here it is important to be calculating customer life time value as well as conductingvalue path tracking to understand re-purchase intention or ‘propensity to bolt’.
Typically, customer value research involves an examination of issues and attributes related to satisfaction, perception of value, and repeat purchase intention. Order of importance ranking is established for the key attributes that influence satisfaction, value perception, and repurchase intent. Current performance levels are gleaned from research and analyses, thereby providing evidence of the gap between expected and present performance from the customer’s perspective. Combined with the importance rankings, you become armed with important insight as to where to focus the time and attention of improvement efforts. In addition, studies can include an exploration of current product and service offerings, brand equity attached to those products and services, and directional flow of value of those offerings in the marketplace. Tracing the value path (growth, stable, decline) your current product line is tracking on provides invaluable guidance to initiate the right actions at the right time to maximize customer satisfaction and perception of value while boosting repeat sales.
Part of the unique strength of is the integrated view we bring to the issues of customer value and loyalty, brand equity, product and service line composition, and value path tracking. Based on years of practical experience, we understand a comprehensive framework is required to analyze and propose customized solutions to these multi-faceted issues. Each of these items is strongly interwoven with the others and thus must be approached in a holistic manner if change and improvement are to be made permanent.
Our breadth of capabilities allows us to create a tailored set of solutions to your unique value challenges. We can help you isolate the most profitable customers to do business with by applying “customer loyalty economics” research. Or, we can identify the key drivers of brand equity from the customer’s point of view and determine how to reinforce those attributes while minimizing brand liabilities. We can explore your current product and service line to establish the right mix is in place to capitalize on the positioning you are staking out in the market. And, we can build a competency-based product and sales training program to sharpen the skills of your business development professionals. In short, we’ll craft an integrated and aligned solution to meet the competitive corporate branding challenges you face head on as you design-instrategies for delivering customer value.
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