Customer Value Analysis

Dr Arvind Kalia
• Customer Value Analysis (CVA) refers to a
research method that is used to identify how
an organization is perceived by consumers of
an organization and their competitors. The
CVA is extremely important because it allows
an organization to gauge how they are judged
in comparison to their industry rivals.
Methods of CVA
 Critical Service Encounters Research

• GOAL - understanding actual events and

behaviors that cause customer dis/satisfaction in
service encounters
• METHOD - Critical Incident Technique
• DATA - stories from customers and employees
• OUTPUT - identification of themes underlying
satisfaction and dissatisfaction with service
encounters
 Sample Questions for Critical Incidents
Technique Study

• Think of a time when, as a customer, you had a

particularly satisfying (dissatisfying) interaction
with an employee of .
• When did the incident happen?
• What specific circumstances led up to this
situation?
• Exactly what was said and done?
• What resulted that made you feel the interaction
was satisfying (dissatisfying)?
 Portfolio of Services Research
Research Objective Type of Research
Identify dissatisfied customers to attempt recovery; identify
most common categories of service failure for remedial action Customer Complaint Solicitation

Assess company’s service performance compared to competitors; “Relationship” Surveys

identify service-improvement priorities; track service improvement
over time

Obtain customer feedback while service experience is still fresh; act Post-Transaction Surveys
on feedback quickly if negative patterns develop

Use as input for quantitative surveys; provide a forum for Customer Focus Groups
customers to suggest service-improvement ideas

Measure individual employee service behaviors for use in coaching, “Mystery Shopping” of Service
training, performance evaluation, recognition and rewards; identify
systemic strengths and weaknesses in service Providers

Measure internal service quality; identify employee-perceived Employee Surveys

obstacles to improve service; track employee morale and
attitudes
Lost Customer Research
Determine the reasons why customers defect

To forecast future expectations of customers

To develop and test new service ideas Future Expectations Research
 Figure 4-6
Evidence of Service from the
Customer’s Point of View
 Contact employees
 Customer him/herself
 Operational flow of  Other customers
activities
People
 Steps in process
 Flexibility vs. standard
 Technology vs. human
Physical  Tangible
Process
Evidence communication
 Servicescape
 Guarantees
 Technology