Customer Value Analysis (CVA)

Customer Value Analysis (CVA) refers to a research method that is used to identify how an organization is perceived by consumers of an organization and their competitors. The CVA is extremely important because it allows an organization to gauge how they are judged in comparison to their industry rivals.

Measuring Customer Value

There are the following important ways you can use to measure customer value. Let’s check them out.

• Identify Customer Benefits: Below are some of the factors that are closely tied to customer benefits.
  • Product or service quality
  • A better solution
  • Unique customer experience
  • Customer service quality
• Total Customer Costs: Segment your customer costs into tangible and intangible costs.
  • Tangible Costs
    • The price of your product or service
    • Installation or onboarding costs
    • The cost of accessing your product or service
    • Maintenance costs
    • Renewal costs
  • Intangible Costs
    • Time invested in buying your product or service
    • A poor customer experience
    • Physical or emotional stress people suffer because of buying or installing your product
    • A poor brand reputation
• Time spent understanding how your product or service works
• Find the Difference Between Customer Benefits and Customer Costs
• Use the formulas below to calculate customer value analysis (CVA).
  • Customer value analysis (CV) = Total Customer Benefits – Total Customer Costs