MAC Insights

Adding Value to Your Business

What is Customer Value and why is it important?

What is Customer Value and why is it important?

Customer Value is the key differentiator in business today. Most organisations get caught up in the digital transformation, but it does not eliminate the fact that customers want personalised treatment or want to feel cared for.

Customer Value is a science. In order to grasp this science, the direction of the organisation needs to be understood. Here are some questions that must be answered in regard to direction setting:

  • What kind of service is the customer experiencing?
  • What obstacles are in the way of the customers?
  • Why do we want to change our current service experience to a new way?
  • Are service providers “on board” with the decision?
  • Is there “buy in” from the team?

The biggest risk of the above approach is that we must navigate through untested or uncertain territory. Many leaders stick with past knowledge and experiences as they are familiar to them and leave Customer Value on the table.

This uncertain territory becomes even more complicated in “service industries” as opposed to manufacturing industries where deviation from the standard is very clearly seen – like when a red door is fitted onto a blue car. In service industries we only know about bad customer experience when it has already happened and by then it is too late! So, how do we make the Customer Value visible?

Making the process visual is critical for the Customer Value to be understood by the entire team instantaneously. This way we can easily identify customers who had a bad experience and act accordingly before the entire experience or relationship is damaged. This visual process is key in leading this transformation.

Centering on Customer Value helps shape leaders to change from a “command-and-control environment” to a “mentoring-coaching environment”. What is ultimately accomplished here is:

  • Mindsets of staff start to change by coaching through experimentation.
  • Leaders grow by continuously coaching and developing their teams.
  • Business expands by listening and responding to the customers, hereby delivering on Customer Value.

With the right leadership and strategy, Customer Value is aligned to the target operating model, hereby delivering the value that is expected.

At the end of the day, the most important elements of customer experience should be achieved. Test these by asking “has the customer received value from the organisation?” “Have the customer needs been met in the manner that they expected it?” And ultimately, “will this make the customer loyal to the brand?” If not, continue with the process.

Written by Clive Jainarain

Connect with MAC Consulting to enhance your Customer Value.