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FTM Business Template - Customer Value Analysis

FTM Business Template - Customer Value Analysis

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Published by SofTools Limited

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Published by: SofTools Limited on Jul 10, 2009
Copyright:Traditional Copyright: All rights reserved


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© SofTools, 2009. For more information on related products and services, visitwww.Fast-Track-Me.com or contact us at:info@Fast-Track-Me.com 
Customer Value Analysis
Business Template
What is Customer Value Analysis?
Customer Value Analysis (CVA) is a structuredmethod for assessing the performance of a businessagainst both the needs of the customer andcompetitor activity.
Why is it relevant?
It will allow you as the team leader to assess relativestrengths, weaknesses and source of differentiation
(a ‘Unique Selling Proposition’) for your products
and services. Once you have gained this insight, youcan plan and implement actions to improve yourcompetitive performance.
Who needs to be involved?
Ensure that anyone who provides products andservices to internal or external customersunderstands their needs and the choices they have.This task is obviously more critical in a competitivesituation, but lacking real customer understandingwill result in poorer quality to internal customersand loss of business to eager competitors.
When should you use it?
A comprehensive CVA can take time and energy.Focus your analyses on your most importantsegments and customers, and time them so thatthey feed into regular (annual or quarterly) planningsessions. Alternatively, if you have just lost a majorsales opportunity, use CVA to understand why andto plan activities to stop it happening again.
How should you implement it?
Arrange a series of one-on-one meetings with yourkey customers and use these as an opportunity toquestion and listen hard. Use the CVA template tostructure your questions and to facilitate analysisback in the office. Use your time and budgetselectively
how much time and effort you spendwill vary from a quick phone call to a few customers,to the use of a professional market researchcompany.
© SofTools, 2009. For more information on related products and services, visitwww.Fast-Track-Me.com or contact us at:info@Fast-Track-Me.com 
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.
TVT customer - Trasda Europe
Analysis of the customer purchase criteria and competitive performance for Trasda in Europe
Andy Bruce
Update & Actions
Whilst we have an overall advantage we have significant deficiencies in the feature richness of this range thatrequires more creative NPD, and we need to address customer service issues
Customer criteria Type Ideal Performance Priority Us Comp StatusA
Feature richness ProductAt least two unique features thatsupport differentiationHigh 4 9
Packaging appearance ProductClearly differentiated productcompliant with brand guidelinesMedium 3 5
Quality as measured byon-time in-stockProcess100% compliance with Service LevelAgreements (SLAs)Low 10 2
Supply chain integrationand simplicityProcessPotential to electronically integratewith client systemsMedium 10 5
Single point of contactfor all support inquiriesPeopleNamed account managers withdirect telephone accessHigh 5 2
Customer service andresponsivenessPeopleResponse to customer service callseffectively handledHigh 4 7
Low cost per item PriceAchieves customer-definedminimum target levelsMedium 7 9
Minimum total cost of supplyPriceActive stock management systemmanaged for customersLow 9 6
52 45
© SofTools, 2009. For more information on related products and services, visitwww.Fast-Track-Me.com or contact us at:info@Fast-Track-Me.com 
Virtual Consultant
Virtual Consultant 
provides a step-by-step guide to completing this business template. It is worded as aseries of questions designed to make you stop and think about this topic in a challenging and creative way 
as if abusiness 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?
What area does each criteria primarily relate to?
Features or attributes of the product or service itself 
 Aspects of the way the product or service is delivered 
The way in which the supplier manages customer relationships
 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 
Finally, what is the status of our performance against each criteria?
= Immediate action is required (our competitor performs better than we do against a mostimportant criteria)
= Future action is probably going to be required
= No action required
Note: Red status should result in the generation of actions for performance improvement 

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