Customer Value Analysis
Business Template
What is Customer Value Analysis?
Customer Value Analysis (CVA) is a structured
method for assessing the performance of a business
against both the needs of the customer and
competitor activity.
Why is it relevant?
It will allow you as the team leader to assess relative
strengths, weaknesses and source of differentiation
(a ‘Unique Selling Proposition’) for your products
and services. Once you have gained this insight, you
can plan and implement actions to improve your
competitive performance.
Who needs to be involved?
Ensure that anyone who provides products and
services to internal or external customers
understands their needs and the choices they have.
This task is obviously more critical in a competitive
situation, but lacking real customer understanding
will result in poorer quality to internal customers
and loss of business to eager competitors.
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com
or contact us at: info@Fast-Track-Me.com
When should you use it?
A comprehensive CVA can take time and energy.
Focus your analyses on your most important
segments and customers, and time them so that
they feed into regular (annual or quarterly) planning
sessions. Alternatively, if you have just lost a major
sales opportunity, use CVA to understand why and
to plan activities to stop it happening again.
How should you implement it?
Arrange a series of one-on-one meetings with your
key customers and use these as an opportunity to
question and listen hard. Use the CVA template to
structure your questions and to facilitate analysis
back in the office. Use your time and budget
selectively – how much time and effort you spend
will vary from a quick phone call to a few customers,
to the use of a professional market research
company.
Customer Value Analysis
This is a case example based on a fictitious company called TVT – all the data is displayed for demonstration
purposes only. For a detailed explanation of what each cell is used for please refer to the Virtual Consultant on the
following pages.

Customer TVT customer - Trasda Europe

Description Analysis of the customer purchase criteria and competitive performance for Trasda in Europe
Owner Andy Bruce
Whilst we have an overall advantage we have significant deficiencies in the feature richness of this range that
Update & Actions
requires more creative NPD, and we need to address customer service issues

Customer criteria Type Ideal Performance Priority Us Comp Status

At least two unique features that
A Feature richness Product High 4 9 Red
support differentiation
Clearly differentiated product
B Packaging appearance Product Medium 3 5 Amber
compliant with brand guidelines
Quality as measured by 100% compliance with Service Level
C Process Low 10 2 Green
on-time in-stock Agreements (SLAs)
Supply chain integration Potential to electronically integrate
D Process Medium 10 5 Green
and simplicity with client systems
Single point of contact Named account managers with
E People High 5 2 Green
for all support inquiries direct telephone access
Customer service and Response to customer service calls
F People High 4 7 Red
responsiveness effectively handled
Achieves customer-defined
G Low cost per item Price Medium 7 9 Amber
minimum target levels
Minimum total cost of Active stock management system
H Price Low 9 6 Green
supply managed for customers
52 45 Red

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com
or contact us at: info@Fast-Track-Me.com
Virtual ConsultantTM
The Virtual ConsultantTM provides a step-by-step guide to completing this business template. It is worded as a
series of questions designed to make you stop and think about this topic in a challenging and creative way – as if a
business coach or consultant was sitting next to you.

Customer criteria
What criteria will customers use when making their purchasing decisions, what is important to them?

Type
What area does each criteria primarily relate to?
Product
Features or attributes of the product or service itself
Process
Aspects of the way the product or service is delivered
People
The way in which the supplier manages customer relationships
Price
Aspects of cost, purchase price of value

Ideal performance
For each criteria, what is the customers 'ideal' solution?

Priority - P
What is the relative importance to the customer of each criteria

Us - our performance
How does our product or service offering perform against the 'ideal'?
Score '10' if there is a perfect fit, and '0' if there is no fit what so ever

Status
Finally, what is the status of our performance against each criteria?

 Red = Immediate action is required (our competitor performs better than we do against a most
important criteria)
 Amber = Future action is probably going to be required
 Green = No action required

Note: Red status should result in the generation of actions for performance improvement

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com
or contact us at: info@Fast-Track-Me.com
Customer Value Analysis
Use the following blank template to address an issue or opportunity within your business or team.

Customer
Description
Owner

Update & Actions

Customer criteria Type Ideal Performance Priority Us Comp Status

A
B
C
D
E
F
G
H

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com
or contact us at: info@Fast-Track-Me.com