Customer (or Stakeholder) Value Discovery is a process which enables businesses and their employees to discover what customers truly value and what really irritates them. The values and irritants are ranked by the customers providing a hierarchy which provides clarity and focus for action and real competitive advantage. The Interactive Value Model created provides a tool for strategy development and ongoing measurement of results, in the eyes of the most important critics – the customers.
When to Use It
Understanding what drives customer behaviour in a clear, actionable and measurable format is the first step in addressing several key business issues:
- Customer retention
- Customer acquisition, propensity to purchase, up-selling and cross-selling, share of wallet
- Transforming the customer experience
- Realising new business opportunities
- Product design
- Staff acquisition & retention
- Key account retention and development
The overall approach involves a series of workshops, often 1 on 1 interviews, and a number of analysis and action planning events. The actual design of the study is conducted as the first step in the process with key stakeholders and will vary accordingly in size and scope. However there are few fundamentals that set this approach apart from traditional “research”, surveys and focus groups.
Traditional approaches are not actually research; they are measurement and have a number of flaws:
- A predefined set of questions, issues or ideas are tested – the scope has already been set
- How and where the questions are asked introduce their own biases
- The outputs are not actionable – they don’t say what can be done about the issue
- Often a third party “expert” conducts the survey and reports back – there is no ownership of the results
There are two factors which are absolutely critical to getting accurate, actionable results which are genuinely understood and owned by the people who will need to use them:
- Discovery – with no predefined expectations, provide an opportunity for customers to say what is important to them in a non-threatening but rigorous process.
- Involvement – company staff must be intimately involved in the process of discovery for themselves. During the Customer Value Discovery workshops staff are in the bear pit with the customers and are actively involved thereafter in the analysis and reporting of the results.
CVD is a highly refined, scientifically rigorous technique that has proven its worth with 100’s of clients around the globe. It is robust, fast and effective.
Benefits and Deliverables
- A fresh understanding of what really matters, based on genuine discovery of what frustrates and irritates customers, and what they truly value
- Interactive Value Model which provides a powerful tool for developing focussed initiatives to address the issues and opportunities presented as well as an ongoing measurement mechanism which is meaningful to customers.
- High levels of ownership of the findings and commitment to the actions arising
- Favourable customer impressions – they never fail to enjoy and be impressed by this new approach which gives them the chance to really say what they feel.
- Identification of numerous quick wins, often irritants which can be swiftly fixed.
- Fast – taking action based on real insight within weeks.