Tool: Customer Value Analysis
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A customer value analysis (CVA) is a process used by businesses to determine the perceived value of their products or services from the customer’s perspective. It is a way to measure how well a company is meeting the needs and expectations of its customers.
There are a number of benefits to conducting a customer value analysis:
- First, it can help you to understand what your customers value most about your product or service. This information can then be used to improve the offering.
- Additionally, customer value analysis can help you to identify areas where you may be able to charge more for your product or service.
- Finally, customer value analysis can help you to benchmark your product or service against competitors.
The CVA process begins with a survey of customers to determine their level of satisfaction with the company’s products or services. The survey should include questions about the customer’s needs and how well the company’s products or services meet those needs. It should also ask about the customer’s perceptions of the company’s products or services, including their quality, value, and customer service. It should ask customers to rate its competitors.
Once the survey data has been collected, it is analyzed to identify areas where the company’s products or services are not meeting customer expectations or where the company is lagging behind its competition. This analysis can help the company to make changes to improve the customer experience.
Below, you can see a CVA example of a restaurant and its two main competitors. Customers were asked to rate all three restaurants on a scale from 1 (bad) to 5 (very good) on several criteria such as food quality or food selection.
In this example, you can see that poor ratings on food selection and food presentation should be tackled soon. The weight of these criteria is quite high (meaning customers think these criteria are very important) and both competitors received better scores.
