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Cvm Dqg Final1
1. Customer Value Management Concepts and Case Study by Sunil Thawani Adnoc Distribution [email_address] Dubai Quality Group Evening Seminar 30 th May’2000
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3. CVM - The Concept “ What do we buy ? Value (Benefits) Value/ Benefit = Use + Esteem function of a product (service)
4. Price, Cost, Profit vs. Value Required Desired (Value) Increasing Benefits- Functions- Performance Price, Cost, Profit Price Cost Zero Value Costs Marginal Price Realization Profit
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7. Making Quality a Strategic Weapon Effectiveness Time Stage 1 Conformance Quality (Before 80’s): Deming, Juran, Crosby era Focus - Process Control, Reduce Scrap, SQC, Conformance to Requirements Product with Zero Defects may not necessarily make customers happy ?
8. Making Quality a Strategic Weapon Effectiveness Time Stage2 Customer satisfaction (late 1980s): Focus : Get close to customer, Understand their needs, Be customer driven e.g. Xerox Part of MBNQA Did not answer why we win/ loose customers ? Often non customers not included Failed to measure performance relative to competition. Conformance Quality
9. Making Quality a Strategic Weapon Effectiveness Conformance Qlty. Customer satisfaction T Q M Time Stage2 Stage 3 Stage 1 Mkt. perceived Qlty & value relative to competition (1990s) Entire market included How our products compare with competition Requirement of MBNQA
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11. Making Quality a Strategic Weapon Effectiveness Conformance Qlty. Customer satisfaction Mkt-perceived Qlty & value relative to competitors C V M T Q M Time Stage 4 Quality key to CVM Use changes in market place as a strategy to drive business and create most value for customers Build on TQM principles
12. Making Quality a Strategic Weapon Effectiveness Conformance Qlty. Customer satisfaction Mkt-perceived Qlty & value relative to competitors Quality key to CVM Customer Value Management Total Quality Management Time Stage2 Stage 3 Stage 4 Stage 1
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19. Customer Value is a Leading Indicator of Market Share AT & T market share WWPF- 1987 1988 1989 Adapted from speech given by Raymond E. Kordupleski at the American Marketing Association’s Customer Satisfaction Congress, 1991.
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