What is customer value?
08/11/2011
A subjective benefit
Value is what interests the customer. It is subjective. It is a performance or benefit perceived by the customer as intangible and clear. Several criteria may be used to express this value:
- Simplicity, clarity and consistency between the promise made and the service provided
- Quality of service
- Return on investment
- Customer satisfaction and personal attention
- Confidence in policy reliability/performance and brand value
- Transparency
- Attentiveness and recognition, empathy, assistance and support for the full length of the customer pathway
- Speed of claims management, complaint handling and the payment process
- Security in terms of protection against unforeseen life events
How can we measure this value?
Consumers are ready to pay for perceived customer benefits, so value is the starting point for any price estimate.
Going further than a cost-based approach or an actuarial approach based on risk evaluation, it involves identifying those factors on which the customer's buying decision is based. This is something that Apple has clearly understood very well in the marketing of its new iPad. Packed with multiple functions (web access, e-mail, photos, video, etc.), 140,000 apps and powerful technical performance, the iPad is primarily a simple tablet device designed to be user-friendly for the customer.
The sales force challenge
Involving, informing and training the sales force about customer value is crucial if we are to achieve consistency between the product promise and the way it is expressed in the field. Commitment to this new ‘culture' is very significant, since it requires a shift away from a target of ‘zero quality faults' to one of ‘100% satisfied customers'.
On the same topic
Laurence Hontarrède, Chief Marketing Officer, BNP Paribas Cardif
This new approach to our offer fundamentally changes the way we think about insurance.
