Customer Satisfaction, Loyalty, and Value

Is having satisfied customers enough?

Do you have the information needed to make strategic decisions on how to manage your customers?

Do you know how you stack up against competitors in the eyes of your customers?

Simply understanding how satisfied your customers are with your services is not enough. A deeper understanding of what customers value is critical to any organization. Understanding the value of an individual customer can be shown to be a significant driver of profitability. Conversely, the customer's perspective of the value you deliver to them is the reason they return, or defect. Without understanding both sides of the value coin:

• How will you develop and promote your product/service from a strategic point of view, unless you can incorporate customer feedback indicating what they value?
• How will you separate high value from low value customers and develop retention strategies?
• How will you identify acquisition targets or prospects and a strategy for winning them over?
• How will you allocate scarce resources such as customer service, or special promotions?
• Will customers simply be satisfied, or will they extract such value that they become loyal evangelists?
• How will you understand what drives value for customers, and how customers make choice decisions?

The Phase 5 Approach

Phase 5 has developed a proprietary approach to Customer Value Measurement (CVM) that helps clients develop a full understanding of two types of value - both the value that individual customers bring to your organization and what customers value about your products/services and your organization in general.

Our proprietary approach is easily customized to meet your measurement needs. There are a number of steps:

Process Definition and Mapping - We work with you to identify all potential client points of interaction or "touchpoints" and map their contribution to an overall picture of service delivery for your organization

Market Segmentation - We work with you to develop an approach to segmenting your customers into groups to understand strategic drivers of value

CVM Measurement - Leveraging a number of data collection methodologies, we collect detailed feedback from your customers. Wherever feasible, we collect detailed feedback from your competitors' customers to learn how you are positioned in the competitive landscape.

Value Mapping - Using the data collected from your customers and competitors' customers, along with your segmentation plan, we develop a series of value maps designed to show what your market groups value, and how well you (and your competitors) are performing

Develop Strategies - Based on the value maps and corresponding performance scores, you will have the intelligence necessary to create targeted strategies that are grounded in very specific tasks that can be managed

Continuous Tracking - Measuring customer value is an ongoing process. Things happen that are out of your control, but which may affect what your customers value. Continuous measurement allows you to be proactive with your customer management strategies.

Benefits

Unlocking the drivers of value provides the key to realizing many internal and external gains. Specific benefits that clients have realized include:

• clear vision of your competitive value position, and how choice decisions are made
• tools to manage your customer base
• optimization of resource allocation
• facilitates customer attractiveness, strategy and scenario planning

Other benefits of CVM include:

• lower customer turnover
• better competitive customer targeting
• better marketing ROI

The Phase 5 Difference

Our value measurement process has worked for many clients over the past decade in a number of sectors, including technology, information/media, finance, and insurance. We have had the opportunity to work with individual clients on repeat studies, to refine the CVM process. It works because we uniquely approach value from the corporate and customer perspective. From insightful qualitative research that gets at the why?, to complex modeling and algorithms, our processes help to deliver intelligence you can use.

To learn more about our CVM approach, contact:

Sam Fiorino
(613) 241-7555, ext. 116

or

Andreas Noe
(613) 241-7555, ext. 106