Does Superior Customer Value Pay?

Customer value links to market share growth and business results!

Customer Value Analysis is an outgrowth of Dr. Gale’s pioneering work with General Electric and The Strategic Planning Institute that established the PIMS (Profit Impact of Market Strategies) database. The correlation between customer value and return was empirically tested by the PIMS program, a multi-year, cross sectional study of approximately 2,800 business units worldwide.  Measures of both the benefit and cost components of value for each business were provided to PIMS by the participating companies, along with measures of business financial health.

In the diagrams shown below, the businesses are sorted according to their customer-perceived value performance levels, expressed as a ratio relative to their industry average.  Within any market the average relative value ratio is 1.0.  The businesses in the left-most bars have inferior value relative to competition.  They consistently under perform businesses in the right-most bars, which deliver superior value relative to competition, and outperform on ROI and Market Share Gains.

Contact us for a complete review of the link between Customer Value Analysis metrics and business results.