Mastering Customer Value Management: The Art and Science of Creating Competitive Advantage
Businesses that know what customers value, know how to deliver this value better than the competition, and know when it’s important to communicate with customers so that they perceive the true value delivered achieve competitive advantage, better business results and shareholder value. A growing body of statistical research is proving this common-sense principle.
The challenge for business is to turn this understanding into practical action that delivers measurable results. The idea that business success comes from focusing on customers is not new, and vision and mission statements are full of aspirational language about creating value for customers. Yet some of the most metrics-driven companies would be hard pressed to explain how they are measuring and managing customer value.
There is now an emerging art and science of customer value management that is proving its worth in increased market share and shareholder value for the companies that practice it. Companies that capture and use customer data with the same kind of discipline, passion and understanding they give to operational and financial data are learning that this business practice is well worth the time and money invested. By focusing on winning in the customer market, they also win in the employment market (attracting and retaining talented people) and in the financial market (attracting and retaining the investment required to keep the business alive and growing).
The concepts of customer value management and the practical tools that have been developed to support them are the subject of this book. Customer value management is about:
Choosing value: Asking customers in your target market what they value, finding out how they rate the value you deliver compared to the competition, and using this understanding to focus priorities and then decide what value proposition to take to market.
Delivering value: Making sure your business processes are aligned with your value proposition, and determining what business improvements on your part will deliver greatest value to customers.
Communicating value: Educating the market on your value proposition and how you’re focusing investment to deliver greater value than the competition.
Over the past 17 years, Ray Kordupleski has worked around the world helping companies turn customer value management from a good idea into a way of doing business. Janice Simpson met and worked with Ray in one of these companies. In this book, she teams with him to document his techniques, relating real-life stories and practical lessons from Ray’s experience and that of his many associates and clients – including six case studies of companies of varying size and in varying industries that have successfully implemented customer value management.
For business leaders and their teams, the authors outline the business case for customer value management, the key concepts, and the role of the leadership team in making it work. For those charged with implementation, the Ten Steps to Mastery presented in the book include practical tools and strategies that have been proven to work.