Scribd
Upload
9 views2 pages

Customer Value Analysis Steps Explained

The document outlines a 5 step process for conducting a customer value analysis to identify customer needs and wants, assess the importance of different attributes, compare a company's performance to competitors on important attributes, examine ratings of a company against a specific competitor attribute by attribute, and monitor customer values over time.

Uploaded by

Christine Ann Talunay
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
9 views2 pages

Customer Value Analysis Steps Explained

The document outlines a 5 step process for conducting a customer value analysis to identify customer needs and wants, assess the importance of different attributes, compare a company's performance to competitors on important attributes, examine ratings of a company against a specific competitor attribute by attribute, and monitor customer values over time.

Uploaded by

Christine Ann Talunay
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Customer value analysis also helps to identify the needs and wants of

the target buyers and their rating of competing products in terms of their
needs and wants.

Its help the company decide which competitors should be attacked and
which to be avoided, managers usually go for customer value analysis
before deciding on the attack and avoiding strategies. This analysis helps
the company look at its strengths and weaknesses

Step -1: Identifying the main attributes that


customers value.
This may be identified by asking a group of representative customers of
the target segment(s). You may ask them what they look for in a product
and how they select a particular seller. You should record their responses
to help you identify your company’s position in the minds of your target
buyers.

Step-2: Assessing the quantitative importance of the


different attributes.
To assess the importance of different attributes that customers consider
important, you may request them to rank the attributes in order of
ascending value. By averaging their rating, you can decide which attribute
is most important, which comes next to it, and so on.

Step-3: Assessing the company’s and competitors’


performances on the different customer values
against their rated importance.
On the third stage, you may ask your respondent customers to compare
your company’s performance with that of your competitors with respect
to each of the attributes they consider important.

Step-4: Examining how customers in a specific


segment rate the company’s performance against a
specific major competitor on an attribute-by-
attribute basis.
ere respondent customers are requested to compare the company’s
performance with that of the major competitors against each of the
attributes of customers value. It helps the company identify its position
with respect to its major competitor. This helps the company to decide
whether it should raise its price, reduce it, or keep the price unchanged.

Step-5: Monitoring customer values over time.


Customers’ values always do not remain the same. They may change with
the elapse of time, and consequently, a company should, after certain
intervals, measure customer values for revising its strategies if required.

You might also like