Learn something new every day
More Info... by email
Customer value analysis (CVA) is an approach to consumers that involves presenting the worth of value of a businesses products to those consumers. Considered a key element in the customer loyalty management process, the idea is to identify any and all factors that are likely to motivate targeted consumers to see quality in those products, with attractive pricing to increase that perception of value. While this process is more commonly used in business to business settings, the same general concept can be used by companies to increase market share with specific groups of consumers.
One of the tools used in a customer value analysis is the customer survey. The purpose of the survey is to provide customers with the opportunity to share their thoughts on specific goods or services offered by the company, along with comments and critiques that could be used to help enhance some aspect of the product. Data collected using this customer satisfaction tool can influence the nature of the product itself, or possibly have an impact on the marketing and sales techniques used to present those products to new and potential clients. As a bonus, this process of customer satisfaction marketing helps increase rapport with customers, which only aids in increasing customer loyalty.
Another benefit of customer value analysis is gaining a better understanding of how customers make use of the products, and how they perceive the cost in relation to those uses. This can sometimes help a company that offers average quality goods to get insights into why a company that offers a superior product can command higher prices and still capture more market share. From this perspective, a customer value analysis is not supposed to reinforce the company’s concept of itself, but provide the incentive to improve and push quality boundaries while still offering products that consumers will view as being priced equitably.
When designing a customer survey analysis, there are a few key thoughts to keep in mind. Ideally, the structure will avoid phrasing questions in a manner that makes it possible for customers to provide simplistic answers that reveal very little. The use of multiple choice responses, providing scales, and allowing opportunities for customers to comment and offer more detailed input at strategic points during the survey is very important. Doing so will help increase the amount of detail obtained from the effort, and lead to a customer value analysis that yields more comprehensive and helpful results.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!