Customer Value Analysis Concepts

A framework to improve market share, growth and profitability

Will customers buy from you or your competitors?  Your future business prospects rise or fall depending on the answer to this simple question.  Customers choose suppliers who offer them the best value; the most useful benefits at the most reasonable prices. For this reason, the suppliers who offer superior customer-perceived value exhibit rising market share, rapid growth, and improving profitability.

Customer Value is a choice model that shows how customers select between competing suppliers.   The methodology examines the relationship between the perceived benefits customers identify with a product or service offering and their willingness to pay for those benefits.

Dr. Gale has shown that the following empirical relationships govern customers’ purchase decisions:

• Customers buy on perceived value
• Value is defined as Benefits relative to Cost
• Benefits include all non-cost attributes: Product, Service, Relationship and Image
• Benefits, costs, and value are perceived by customers relative to competition

Further, Dr. Gale provides extensive evidence that Customer Value Analysis metrics tie to business results and can be used as a leading indicator of growth and profitability.  GALE's Customer Value Analysis provides a powerful framework for improving customer satisfaction, customer loyalty, and your competitive position in the marketplace.

Contact us now to get started using the powerful Customer Value framework to improve customer satisfaction, customer loyalty, and your competitive position in the marketplace!