CVA (Customer Value Added)

CVA= a measure that weighs the satisfaction obtained from the purchase and use of a given product or service, by comparing the Perceived Benefit with the Perceived Cost.

CVA = Can be applied to companies that sell products or services to consumers (B2C) or to other companies (B2B), and to other stakeholders such as Suppliers, Government and Community.

CVA is an efficient tool for building a Sustainable Competitive Advantage for your Company. Studies involving more than 3,800 business units have shown that companies that improve their CVA (Customer Value Added) increase their market share and their profitability. CVA enables to identify the Cost attributes and Benefit attributes that will most contribute to improving your company’s competitive position.

CVA’s main advantage is the possibility of translating the Customer Value Added metrics into the company’s internal metrics (KPI – Key Performance Indicators). Using its internal metrics, using Valuemetrics® technology, the company puts into practice a detailed Action Plan broken down by priority and by department with monthly, continuous monitoring.

Several companies already use CVA as a parameter for paying the annual bonuses to its executives. CVA effectively directs all the departments in a company towards a “customer-focused” culture and a “meritocracy” as it customizes Action Plans based on customer perception.

CVA enables the use and optimization of the market information that already exists in the company. The Marketing and Market Intelligence Department can use CVA as a strategic leadership tool in the process of changing and improving the company.

PVA (People Value Added)

PVA = has the objective of helping the company to create a working environment that motivates employees to do their best. PVA contributes towards:

– Diagnosing the most important attributes for employees satisfaction, both with respect to the work developed, and also in relation to the remuneration and recognition received.

– Monitoring employee satisfaction in relation to the company leadership and management.

– Providing guidance for all management levels with respect to assigning priorities to the attributes that must be improved to get better results in terms of team loyalty and internal and external customer service.

– Implementing an internal metrics system, which enables improved productivity in business processes.

Types of research carried out (personal, telephone and Internet):

Focus Group

Deep Interviews

Quantitative investigation

Surveys of price elasticity

Surveys of the brand image

Sizing the market

Buyer experience

Research with a focus on innovation

Research with a focus on communication

Surveys with a focus on Loyalty

Insights research

Conjoint Analysis

Intelligence and Monitoring

Monitoring of competitors

Market supervision

Industry News

CVA Solutions also develops qualitative and quantitative support for the CVA / PVA methodology. Its portfolio includes.

Qualitative Research = ethnographic surveys, semiotic approach, communications-focused surveys, product concept.
Quantitative Research = market sizing, price elasticity, mystery shopper, habits and attitudes.

Several CVA / PVA tools can be used:

This is a tool for mapping the flow of interactions with the customer, and the first step on the road to building the Value Tree.

This tool enables to visualize the attributes, their impact and the performance of your company and its competitors. It helps define the details of the Strategy and Action Plan. Two tools have been developed to aid in attribute prioritization:

VPI – Value Priority for Improvement – prioritizes the attributes whose improvement most increases the Perceived Value.

VPC – Value Priority for Communication – prioritizes the attributes that have greatest communication potential.

Customers are segmented according to their Perceived Value and propensity to recommend the company.

Specific Analyses and Action Plans are prepared for each customer category = Promoters, Passives, Detractors.

Based on the CVA analysis, it will be possible to:

– Select priorities.
– Set improvement targets.
– Establish the correlation between customer metrics (CVA) and the company’s internal metrics (KPIs).
– Monitor the development of Action Plans to increase the Customer Perceived Value.

Attract new customers

– Brand strength = share of attention – rejection
– We increase attraction through market communication
– Rejection reflects bad experience (in the past and present this value perceived by current customers is bad)

Increase business with current customers

– Perceived value reflects current customer experience
– Perceived value = cost-benefit of your company X, cost-benefit of the competition
– In the value tree we diagnose the critical attributes for improvements

Loss of customers. Why?

– Perceived value worse than competitors / rejection of ex-clients
– Competitors brand strength / competitors promise


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