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From anywhere… to anyone Introduction to Customer Value Management Customer Value Management November, 2002 From anywhere… to anyone Janet LeBlanc Director, Canada Post Presentation Objectives Define customer value management (CVM), Understand the difference between customer value and customer satisfaction, describe key CVM concepts and tools, and communicate the importance of measuring quality in the eyes of your clients. WHY invest in CVM? Canada Post will be a world leader in providing innovative physical and electronic delivery solutions, creating value for our customers, employees and all Canadians What is Customer Value? Quality Price VALUE Source: Adapted from Customer Satisfaction in Practice by the American Productivity Quality Center, 1998 Customer Value Defined QualityAttributes Performance Rating Importance Weight ABC XYZ Product Information 50 6 8 Advertising and Promotion 20 6 7 Customer Consultation 20 9 6 Customized Solutions 10 8 7 100 Stage One Stage Two Stage Three Stage Four Minimum Requirements CustomerFocus CustomerAttitudes Competitive Focus on Targeted Markets Conformance Quality Delivering what we promise Meeting standards Customer Satisfaction Providing what customers want Responding to customer complaints Customer Loyalty Retaining our customers Getting them to recommend us Customer Value Meeting critical needs of targeted customers Outperforming competitors Creating new, unique benefits 21st Century Growth Company Source: Adapted from Managing Customer Value by Bradley T. Gale, (New York, The Free Press, 1994) I can’t get no (customer) satisfaction… Satisfaction in itself does not lead to customer loyalty Positive empirical relationship between value focus and link to market share Where are leading-edge companies headed? Satisfaction = Satisfy Existing Customers Better Value = Improve Your Competitive Position Attract and Retain Targeted Customers Satisfaction Current Service The Entire Customer Relationship Lag Indi
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