Customer Value Starvation Can Kill

Measuring Value (Customer Value Added) and the Cost of Customer Value Starvation

Customer Value Added

Customer Value Added is our customer’s perceived rating or score of the value we deliver divided by the perceived rating or score competition gets on the value they deliver to their customers. Where there is a transaction, we measure the memory of the experience and not the experience itself, (which is measured by using a satisfaction study with the user). So we measure value with the decision maker (not necessarily the user), and some time after the transaction.

To measure Relative Value Added, we need to do the following:

• Measure market perceptions of value our company adds

• Measure market perceptions of value added by competitors

• Define ...