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    Creating Value For Customers

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    Manoj Sunderajan
    The document discusses customer value and how organizations can maximize value for customers. It defines customer value as the perceived benefits compared to the perceived costs or sacrifices. It also outlines several key components of customer value, including product attributes, service attributes, transaction costs, and life cycle costs. The document then provides a framework for how organizations can implement a value proposition approach, including segmenting markets based on customer values, assessing value opportunities, and choosing value propositions to deliver superior value. It emphasizes the importance of creating value-creating relationships with both business and consumer customers.

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    Creating Value For Customers

    Uploaded by

    Manoj Sunderajan
    5 views9 pages
    The document discusses customer value and how organizations can maximize value for customers. It defines customer value as the perceived benefits compared to the perceived costs or sacrifices. It also outlines several key components of customer value, including product attributes, service attributes, transaction costs, and life cycle costs. The document then provides a framework for how organizations can implement a value proposition approach, including segmenting markets based on customer values, assessing value opportunities, and choosing value propositions to deliver superior value. It emphasizes the importance of creating value-creating relationships with both business and consumer customers.

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    The document discusses customer value and how organizations can maximize value for customers. It defines customer value as the perceived benefits compared to the perceived costs or sacrifices. It also outlines several key components of customer value, including product attributes, service attributes, transaction costs, and life cycle costs. The document then provides a framework for how organizations can implement a value proposition approach, including segmenting markets based on customer values, assessing value opportunities, and choosing value propositions to deliver superior value. It emphasizes the importance of creating value-creating relationships with both business and consumer customers.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    5 views9 pages

    Creating Value For Customers

    Uploaded by

    Manoj Sunderajan
    The document discusses customer value and how organizations can maximize value for customers. It defines customer value as the perceived benefits compared to the perceived costs or sacrifices. It also outlines several key components of customer value, including product attributes, service attributes, transaction costs, and life cycle costs. The document then provides a framework for how organizations can implement a value proposition approach, including segmenting markets based on customer values, assessing value opportunities, and choosing value propositions to deliver superior value. It emphasizes the importance of creating value-creating relationships with both business and consumer customers.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 9

    Creating Value for Customers

    Consumer Value

    Customer value is the relationship between the consumers perception of
    benefits they believe they will derive from a purchase compared to the
    price that will be paid

    The total benefit package include functional attributes of the product and
    related service attributes

    Therefore value can be defined as the ratio of perceived benefits to
    perceived sacrifice that is involved
    Components of Customer Value
    Product Attributes
    Service Attributes
    Transaction Cost
    Life cycle cost
    Risk
    Product Attributes
    Product Attributes
    Expected
    Customer
    Value
    Maximizing the lifetime value of the
    customers
    Value customer receive
    value proposition
    value assessment
    Value Organization receive
    Acquisition economics
    Retention economics
    Customer segment
    Lifetime value analysis
    Key steps of the value delivery sequence

    Choose the Value
    (Customer value need, value positioning,
    provide the value
    (product development, service development, pricing,
    distributing and servicing
    Communicate the value
    (sales force message, sales promotion, advertising, PR)
    How to implement a value proposition
    approach

    Analyze and segment the markets by the value customers desire
    vigorously assess the opportunities in each segment to deliver
    superior value
    choose the value proposition that promise these opportunities
    Value creating relationships
    B2B relationships
    B2C relationships

    However before this market segmentation is essential to better
    manage relationships

    B2B segmentation by value sought, industry type
    B2C segmentation - Loyalty segmentation, occasion segmentation
    Relationship Management Chain
    1 Define the value proposition understand the customer value chain where
    and how intended to create value competitive benchmarking

    2 Identify appropriate customer value segmentation
    identify customer value preferences
    segment profitability analysis
    configure the value package
    3 Designing value delivery systems
    Mass customization
    Value added partnerships
    Process reengineering


    4 Managing and maintaining delivered satisfaction
    service process monitoring
    customer satisfaction measurement
    employee satisfaction measurement

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