SUPPLIER PERFORMANCE BENCHMARKING -
CUSTOMER VALUE ANALYSIS (CVA)
How effectively is your company competing in your Market?
How do customers value your product/service vs. competitors?
Customer Value Analysis (CVA) is a detailed approach to determine how to effectively compete in the marketplace vs. your competitors.
CVA assesses how your organization’s product(s) and/or service(s) are viewed relative to competitors’ products and services in the marketplace based on the perceptions of both your customers and your competition’s customers.
The importance of this methodology is that customers' perceptions of value is a prime predictor of future market share.
CVA results highlight all the critical non-price and price attributes (factors) that have an impact on the customer’s purchase decision along with their importance as well as the performance of each supplier on each factor.
If you desire to be the market leader, CVA is a research tool you should embrace in all customer perception research.
Four value quadrants of a Customer Value Map:
“Inferior Offering” is where customers perceive suppliers to be offering quality too low to justify its price (companies in this area would be expected to lose market share).
“Superior Offering” is where customers perceive suppliers to be offering quality that exceeds what would be expected at the price charged (companies in this area would be expected to gain market share).
“Economy Offering” is where customers perceive suppliers to be offering both low quality and low price.
“Premium Offering” is where customers perceive suppliers to be offering a higher quality but at a higher price than expected.
Identifies Where a Company is Doing
Better or Worse vs. Competition
Answer questions such as:
How can you best compete against specific competitors?
What factors should be emphasized in the sales process?
Which competitors are most vulnerable and why?
Among the strongest competitors, what is driving their perceived value?
Which strengths and weaknesses are the largest drivers of your position on the Customer Value Map?