Monday, May 4, 2015

Understanding Value Creation

You would agree that it is very difficult to pin down customer value to specific aspects simply because there is no one definition and also because the perception of value differs from person to person. And, one could very well be creating (or destroying) value even without knowing that one is doing so!

Therefore, rather than trying to define value, the entire process of creating value creation would perhaps become more meaningful & efficient if we were to look at what Internal (employees, partner companies, associates), External (individual, retail, B2B) and the Community recognize as value creation factors or value added factors? Somewhat of an extended VoC (Voice of the Customer)? Perhaps then, we could use these feedback to identify, align, monitor and refine value creation factors to drive customer-centricity, engagement, loyalty and profitability.

In the words of Bob Thompson, CEO of CustomerThink Corp., an independent research and publishing firm focused on customer-centric business management, and Founder/Editor-in-Chief of, there are 9 most relevant and (statistically) significant CX (Customer Experience) practices linked to better business performance, that he groups into three broad categories:

1. Understand Customer Loyalty Drivers
2. Get Feedback From Multiple Sources
3. Close Loop from Feedback to Action

4. Hire “Customer Friendly” People
5. Support with Tools, Info & Resources
6. Train to Deliver at “Moment of Truth”

7. Identify High Impact Interactions
8. Understand Role of People vs. Systems
9. Proactively Plan to Surprise Customers
He also adds a 10th one - "Managers setting a good example"!


You can use technology to get information about your customer, but do you really know your customer? Do you understand what makes them buy your products or services and what makes them leave you and go to the competition? Read about it here --> Do You Know Your Customer?

In the real world, the decision-makers are not companies but rather people within those companies. And, when value capture objectives are not aligned within a company, the result is inconsistent behavior and frustration. Conversely, a shared sense of what must be achieved creates the climate for productive cross-functional collaboration. Read about this here --> Critical to Align Value Capture Objectives.