The Customer Value Network Presentation Archives

Copies of most of the archived presentations are available. CVN members call Kathy at 617 227 8191.

From May 2005 European meeting hosted by BOC Gases

Overview Seminar: Using Customer Value Data to Win in Competitive Markets
Bradley Gale, Customer Value, Inc.

How BOC Uses CPV in Marketing, Product Positioning, Pricing and Key Account Selling
Dynes Woodrow, BOC Gases

Response Added Value Product & Service Packages
Steve Thompson, BOC Gases

Creating Value from Key Customers
David Galloway, BOC Gases

Value Pricing at Syngenta
Kumar Datta, Syngenta

Strategy for a Spinoff Chemical Company
Antonio Belforte, Innovene

Applying Customer-Perceived Value Science to the EBS Portfolio of Market Segments and Products
Catriona Corcoran, EBS

Linking Customer Value to Business Performance
Katarina Brown, PIMS Associates

Putting Value into New Products
Donald Swire, Customer Value, Inc.

New products fail at a notoriously high rate. Numerous studies have identified the primary cause of such failures as a misunderstanding of the market: companies introduce products that are perceived by customers as offering inferior value relative to products already on the market. The tools of customer value management help management teams overcome the problem. These tools can use information generated by conjoint and other market research techniques to help provide a complete simulation of how customers will perceive the product.

Analyzing Your Portfolio of Product Lines and Market Segments
Bradley Gale, Customer Value, Inc.

From March 2005 North American meeting hosted by ConocoPhillips

Overview Seminar: Using Customer Value Management to Earn Market Share and Price Premiums
Bradley Gale, Customer Value, Inc.

Developing New Product Pricing Strategies using the Value-Strategy Toolkit™ Eric Lind, ConocoPhillips

Integrating Segmentation, Loyalty and Customer Value Analysis into a Branded Customer Experience
Jim Ranieri, Air Products & Chemical

Customer Segmentation as an Enable: An Overview

At the heart of Air Products' success has been a value-focused drive to serve the needs of customers. To continue serving thousands of different customers throughout the world, while driving profitability up and costs down, an integrated approach to segmenting customers according to what they value is absolutely critical. This segmentation of customers into groups according to value enables the enterprise to streamline work processes, simplify customer offerings, leverage supply chains and increase perceived value--resulting in the increased profit margins.

Release-4 of Gale/Swire DWR Software for Value Based Marketing & Pricing
Donald Swire, Customer Value, Inc.
(Presentation not available)

Making Value Our Mission: Establishing a Customer Value Tracking System
Janet Leblanc, Canada Post Corporation
(Presentation not available)

Defining a Winning Value Proposition
Joe Murdock, GALE Consulting

Give Customers a Clear and Compelling Reason to Buy From You...Again and Again

Have you shipped a package with FedEx, traveled on Southwest airlines, shopped at Wal-Mart or test driven a BMW or Volvo? Even if you haven't, you probably have a pretty good idea why people would--or wouldn't--choose to do business with them. These organizations all have a clearly defined "Value Proposition" that attracts certain--but not all--customers. And the employees of these companies know what they do (and what they don't do) to attract and retain customers. So, how clear is your company's Value Proposition?

If a customer asked, "How will I be better off if I do business with you rather than your competitors?"

How would you answer it?
Would everyone on your staff answer the same?
Wouldn't your company be more effective at communicating and delivering value if everyone agreed and made decisions based on the same answer?

This presentation discusses how to transform the information in a Customer Value Study into a powerful Value Proposition that provides targeted customers in your market a clear and compelling reason to do business with you.

Putting Value into New Products
Donald Swire, Customer Value, Inc.

Analyzing Your Division’s Portfolio of Product Lines and Market Segments
Bradley Gale, Customer Value, Inc.

From November 2004 European meeting hosted by KLM

Overview Seminar: Using Value-Based Marketing, Pricing, and Selling to Earn Market Share and Price Premiums
Bradley Gale, Customer Value, Inc.

How KLM Uses CPV in Marketing, Product Positioning, Pricing, and Key Account Selling
Hans Zijlstra, KLM Royal Dutch Airlines

The Role of CPV in Marketing and Sales Excellence
David Marshall, Syngenta Crop Protection

Changing The Way A Building Society Works
Kevin Johnson, EBS Building Society

Customer Value Management: Recent High-Impact Applications
Donald Swire, Customer Value, Inc.

From September 2004 North American meeting hosted by Honeywell

Overview Seminar: Earning Market Share and Price Premiums: Using tools and data for analyzing Customer-Perceived Value
Bradley Gale, Customer Value, Inc.

Applying CV Analysis to the Services Portfolio of Honeywell Building Solutions
Anthony Pichnarcik, Honeywell

Using CV Tools in Tight Oligopoly Markets
Clifton Conner, Clarke American

Customer Value Management: Making Value Our Mission
Janet Leblanc, Canada Post

In 2004, Canada Post established a goal to transition the organization from using customer satisfaction to using customer value measurement and management as the corporate methodology for understanding what customer's value and how Canada Post compares relative to its competitors. A Customer Value Management team was created to implement its first-ever Customer Value Analysis study and to use the data to guide process improvement and business planning activities. This presentation will provide an overview of the transition plan and will review a training program designed to teach executives how to develop action plans using customer value information.

Using Customer Value Analysis in an "Emerging" Technology Markets
Eric Lind, ConocoPhillips

The process for refining crude oil into useable fuel for today's applications has been one of continuous improvement. Energy companies are challenged to create the new technologies needed to make these cleaner, more efficient fuels. Financial metrics around efficiency improvement and cost containment are what drive this segment of the oil and gas industry

As part of the efforts of its Emerging Technology group, ConocoPhillips' scientists created a step change technology that is expected to reduce both the capital and operational cost of removing sulfur in the refining process. Personnel in the organization developed a business plan, including economic value, which detailed the expected returns ConocoPhillips would receive from bringing this unique and emerging technology to market. A key gap in our knowledge was in understanding the decision criteria of the end-use customer for the technology. ConocoPhillips partnered with GALE consulting to help answer those questions.

This presentation will detail:

the customer value analysis that was conducted on the sulfur removal technology
the differences uncovered between the ConocoPhillips' perception of customer value and the actual results obtained from the customer
how the technology development and business model were changed to increase the likelihood of commercial success

Embedding the Value-Strategy Toolkit™ Software into Lord's Key Account Management Toolkit
Andy Swoyer, Lord Corporation

Description of the use of Customer Value Management tools and disciplines in the management of large scale, high stakes customer engagements. A Value-Strategy Toolkit™ Analysis of a competitive situation will be presented, and value mapping will be discussed as a key determinant of decision-making for a major customer program. The backdrop of the competitive situation will be presented as an element of Key Account Planning for a particular customer account.

Customer segmentation will be discussed as it applies to identifying important customer groups within market segments and determining/formulating value offers for key customers. A general overview of Lord's Industrial OEM business will be given as the context within which the business opportunity is presented.

Value Pricing
Bradley Gale, Customer Value, Inc.

From May 2004 European meeting hosted by Solvay S.A.

Overview Seminar: Earning Market Share and Price Premiums
Bradley Gale, Customer Value, Inc.

Using the DWR software to Evaluate Suppliers - Solvay Competence Centres, and outside vendors
Claude Declerck, Solvay

Using CPV to Implement and Manage a "Customer Experience" Value Proposition
Glenn Calverly, EBS Building Society

Using the PIMS CV Analysis Framework in Purchasing Decisions
Doug McConchie, PIMS

Pushing the Best-Value Frontier
Bradley Gale, Customer Value, Inc.

From April 2004 North American meeting hosted by Lord Corporation

Overview Seminar: Earning Market Share and Price Premiums
Bradley Gale, Customer Value, Inc.

Using Customer Value Concepts & Tools in Key Account Selling
Brian Sharp, Lord Corporation

Using CV Analysis in Purchasing
Ken Baldwin, Lord Corporation

Conducting a CPV Analysis for a Division and its Lines of Business
Greg Marthaler, Honeywell
(Presentation not available)

Linking Value Selling with Deere's Value Proposition (Productivity, Uptime, and Low Daily Operating Cost)
Dave Reinders, Deere

John Deere was founded in 1837 and is one of the oldest industrial companies in the United States. Deere's construction and forestry division is nearly 50 years old. And yet, just 18 months ago, the division did not have a value proposition, at least not an explicitly stated one. We were certainly customer driven, and we strove to build quality products. But we were not focused on selling that value in the market. In the last 18 months we have built a value proposition, or promise as we now cal it, to do just that - sell value in the marketplace. This is the story of that journey.

Customer Value Analysis Helps Honeywell Capture a New Growth Opportunity
Rickey Brown, Honeywell

Honeywell's engineers knew that their superior controls technology would allow them to make innovative gas-control thermostats for residential water heaters with better performance and higher efficiency than models currently on the market. However, before getting into this business, they would have to convince manufacturers of water heaters that homeowners would value what Honeywell's new technology could do for them -- enough that they would actually pay extra for Honeywell-equipped water-heater appliances. Accordingly, Honeywell interviewed homeowners on their hot-water needs, interviews that revealed many latent, unmet needs. Based on these responses, the new-product team used a combination of Honeywell's Six-Sigma-Plus QFD analysis and the Value-Strategy Toolkit™ analysis to estimate a fair-market price for the alternative water-heater configurations that Honeywell could provide. This analysis was shared with the water-heater manufacturers, and played a pivotal role in Honeywell's successful product launch.

Building and Harnessing your Comparative Advantages
Don Swire, Customer Value, Inc.

Few companies have the luxury of having products that are superior to competitors in all respects. In fact some companies are stuck with products that aren't superior in any respects. However, all companies do some things better than others. The attributes on which your performance is strongest relative to the competition are generally those that should become your key selling points. These are your comparative advantages.

To capitalize on your comparative advantages, you need to

Identify what they are

Develop convincing proff statements showing that you are superior
Market the importance of the attributes where you have the advantage
Market the irrelevance of attributes where you are weak
Target market segments that would have the most affinity with your strengths

The Value-Strategy Toolkit™ provides tools to help in these steps

Pushing the Best-Value Frontier
Bradley Gale, CVI

From October 2003 North American meeting hosted by Canada Post

Overview Seminar: Earning Market Share and Price Premiums
Bradley Gale, Customer Value, Inc.

Building Executive Support for CVM at Canada Post
Janet LeBlanc, Canada Post Corporation

Using a case study approach, Janet LeBlanc will give participants the opportunity to participate in some unique training activities that have helped launch Customer Value Management at Canada Post.

Using CV Profiling in Your Customer Engagement Process
Clay Soares, BP Chemicals

Winning at large accounts is critical to growth and profitability as BP Chemicals. See how customer value approaches have been applied to BP's Customer Engagement Process for key accounts to drive customer satisfaction and value.

Using CVM to Simplify the Customer Experience and Gain Market Share
Michel Saulnier, Bell Canada

Applying CVA, Tracking Action Steps and Progress for a Portfolio of Plants
Fred Birnbaum, Boise Cascade

In today’s competitive environment, understanding the key customer requirements is essential for successful strategy execution. Boise Cascade Corporation’s Packaging Business operates 5 box plants in the NW. These plants comprise a portfolio of businesses that operate in distinct markets. The Customer Value Analysis process enabled Boise to assess the competitive market position of each of the plants and develop “actionable” Value Propositions that could be driven at the plant level.

Is it a Product or Solution? Enhancing Product Value and Customer Bonding
Brian Sharp, Lord Corporation

Provided background on Lord’s experiences related to marketing and selling business solutions and compare and contrast the differences between solutions and product business models. Using this comparison as a backdrop, the presenters will review their experience combining solution selling approaches and product value mapping to improve differentiation at key accounts in commodity product businesses. The goal of the presentation is to generate a discussion with the network attendees around the use of value mapping in the engagement process at large strategic accounts.

Combining Prices from Competitive Intelligence with Performance Data from Surveys for a Monetized Analysis of Customer-Perceived Value
Bradley Gale, Customer Value, Inc.

Merging Cost-In-Use Data into an Analysis of CPV
Donald Swire, Customer Value, Inc.

From October 2003 European meeting hosted by EBS Building Society

Overview Seminar: Earning Market Share and Price Premiums
Bradley Gale, Customer Value, Inc.

Customer Value Management - the Journey
Kevin Johnson, EBS Building Society
(Presentation not available)

Activity-Based Customer Value
Oliver Thurau, PIM GmbH

Using CVI's Attribute Analysis Toolkit to Improve Your Competitive Position and Refine Your Value Position
Bradley Gale, Customer Value, Inc.

Using a Value Calculator to Customize Lifecycle Costs for Key Accounts
Donal Cox, ThermoKing
(Presentation not available)

The Role of Brand Affinity in the Customer-Perceived Value Choice Model
Bradley Gale, Customer Value, Inc.

From March 2003 European meeting hosted by Rolls-Royce plc

Delivering Value to Customers at Rolls-Royce
Sandy Hewitt, Rolls-Royce plc

Challenges and Opportunities for Value Selling in the Aero Engine Business
Michael Corne, Rolls-Royce plc
(Presentation not available)

Re-Segmenting Honeywell's Customer's by "DNA" Behaviour Drivers and Customizing Our Service Levels
David Brookfield, Honeywell

Double Digit year on year Profitable Growth has been Honeywell's number 1 business goal for the last 3 years. Whilst outperforming our industry peers, we have not realised our true potential and hence failed against our goal. Our markets are anywhere between flat and 4,5% growth depending upon maturity and local economy. We have the best people, technology and distribution in our industry and yet we under perform. Our strategy is to find like-minded organisations, customers and vendors, with whom we can focus our resources in a Growth partnership built upon value, innovation and loyalty.............. How do you go about finding such organisations?........They do not outwardly display their strategies. This presentation examines a project to identify the Growth Gene or DNA within our customer base that can enable us to segment our customers, allocate appropriate resources and deliver the optimum service level for each segment.

Positioning and Branding the Product Offerings of BOC Gases
Clive Morton, BOC
(Presentation not available)

How to Use Customer Value Accounting for Pricing
Bradley Gale, Customer Value, Inc.

Segmenting Your Markets and Positioning Your Product Line
Bradley Gale, Customer Value, Inc.

From February 2003 North American meeting hosted by Solvay America

Using CVA to Increase Loyalty--Contrasting Specialty and Non-Specialty Chemicals
Marc Lacroix, Larry Spino, Joe Muzikowski, Solvay

Measuring and managing customer value in a multi-national corporation with diverse business units presents a special challenge. Yet, customer value approaches can be applied in any business. This presentation will demonstrate various CVA approaches and the learnings applied from the use of the tools in several of Solvay's business units.

Case Study: Fee-for-Service at the FAA Creates Dramatic Changes in Value Perception, Customer, and Organizational Behavior
Joe Murdock, GALE consulting, Inc.

How to Use Customer Value Accounting for Value Pricing
Bradley Gale, Customer Value, Inc.

Repositioning a Financial Services Business, Based on CV Analysis
Michelle Herring, Deere & Co.

Using CV Analysis in Six-Sigma Marketing Training at Honeywell
Anthony Pichnarcik, Honeywell

Making Customer Surveys More Useful for CVA
Bart Thedinger, Mastio

Segmenting Your Markets & Positioning Your Product Line — Roundtable discussion
Bradley Gale, Customer Value, Inc.

From October 2002 European meeting hosted by KLM

Balancing Prices and Economic Value Delivered to Customers at KLM
Boet Kreiken, KLM Royal Dutch Airlines

Effectiveness of New Pricing and Distribution Techniques at KLM
Anko van der Werff, KLM Royal Dutch Airlines

Using a War Room for Developing and Executing Customer-Focused Strategies
Bradley Gale, Customer Value, Inc.

Using CV Analysis to Assess a Portfolio of Business Units in Several Countries
Peter Smith, PIMS

The Role of Brand Affinity in Customer-Perceived Value
Bradley Gale, Customer Value, Inc.

From September 2002 North American meeting hosted by HP

Organizing the New HP to Manage the Customer's Experiences, Value, and Loyalty
Diana Bell, Hewlett-Packard

TCE Strategy for the New HP
Dave Swanson, Hewlett-Packard

How Unilever Acted on Insights from CV Mapping and Analysis of Retail Customers in Europe and Latin America
George Alexander, Unilever (retired)

Using a War Room for Developing and Executing Customer-Focused Strategies
Bradley Gale, Customer Value, Inc.

Using the Seven Tools of CV Analysis in "Commodity" Markets to Enhance Value-Based Strategy Development, Competitive Positioning, and Selling
Steve Raschilla, Gale Consulting
(Presentation not available)

The Challenge - Bringing CVM to the Operational Level (The Bell Canada Story)
Michel Saulnier, Bell Canada

Discover what management processes Bell Canada implemented to manage their CVM program. To be successful as a company, it is important to ensure CVM is well understood at all levels, from the Executives to the Operational Teams. In this presentation, you will learn about the latest improvements to the CVM program at Bell Canada as well as the new management process that was successfully introduced to ensure CVM is on track.

Driving Organizational Change with Customer Value Metrics
Steve Heffernan, Agilent
(Presentation not available)

The Role of Brand Equity in Customer-Perceived Value Choices
Bill Etter and Jack Fentress, Research International

Demo/Q&A: Using Value-Strategy Toolkit™ Software To Improve Your Value Proposition and Competitive Position
Bradley Gale, Customer Value, Inc.

From March 2002 European meeting hosted by Deere International

CVA Project to Assess the Positioning of Deere Combines in Europe: Overview, Results, and Action Plans
Antony Scott, John Deere

John Deere Customer Satisfaction Survey: Overview of the Survey Process and Collations of Results
Peter Leech, John Deere

How Customer Relationship Executives Boost Value to Customers at Rolls Royce
Paul Snelling & Trevor Croft, Rolls-Royce Plc

How Much Is Your Product Really Worth?
Bradley Gale, Customer Value, Inc.

Analyzing Customer Perceptions and Competitive Position at Solvay
Claude Declerck & Angela Agati, Solvay

Value-Strategy Toolkit™ Software for Analyzing Your Value Proposition and Simulating Action Plans -- Update
Donald Swire, Customer Value, Inc.

From March 2002 North American meeting hosted by the US Postal Service

CVM at the USPS, Dealing With "Trust" As An Attribute (post 9-11 and anthrax)
Kent Smith, USPS

Panel: Incorporating Key Elements of Customer Value, Relative Importance, and Performance into Customer Satisfaction and Brand Equity Measurement Programs
Francia Smith, USPS

How Much Is Your Product Really Worth?
Bradley Gale, Customer Value, Inc.

Developing Data on Customer-Perceived Value, Monetary Value, and Customer Lifetime at BP Solvay Polyethylene
Larry Spino, Solvay

Translating Customer Value Results into Financial Terms
Bill Feuss, AT&T

Benchmarking Your Businesses Against Bradley Gale's Price-Performance Database
Bradley Gale & Susan Gale, Customer Value, Inc.

Marketing War-Room Software for Analyzing Your Competitive Position and Simulating Action Plans -- Update
Donald Swire, Customer Value, Inc.

From October 2001 North American meeting hosted by Customer Value, Inc.

Due to increasing corporate travel restrictions following the September 11 terrorist attacks we had to cancel the Boston meeting. However, following are copies of the presentations that had been scheduled for the meeting.

Estimating the Monetary Value of Your Offering vs. Other Products (Using the Fair Value Line and Customer Value Accounting)
Bradley Gale, Customer Value, Inc.

Bradley showed how CVI estimates the customer value delivered by your organization, in monetary terms, as the added value of your offer minus the price premium that you charge. This monetary customer value equation can be measured versus the average vendor in your market category or head-to-head versus each of your competitors. Here are items of special note to Network members:

First, the exhibit sequence for desktop PCs was designed to reveal the visual display power of a value map, perhaps the most important tool of CV analysis. Bradley asked participants to quickly state which brand offered the best or worst value in a category and what were the pricing issues. They began by looking at a chart with columns of data on price and performance. The group had difficulty answering the questions at this point. Next they looked at a plot of price versus performance. Finally, they viewed a value map with a fair value line and fair value contour lines. The fair value line represents the average trade off of price for performance in a category. It also represents a CV ratio of 100% versus the average of brands in the category. The fair value zones in this presentation represent a value band between 95 and 105. The fair value line and fair value zone made it easy for people to quickly determine which brands are in the best and worst value positions.

Second, Bradley used data from expert evaluations of desktop PCs to estimate Delis customer value delivered versus Compaq and other vendors in the category. He noted that Dell displaced Compaq as #1 in desktop PCs in 2000.

Third, Bradley showed estimates of the monetary value added, by performance attribute, versus the average vendor, for each vendor in the market category. This monetary analysis makes performance differences more understandable and actionable. For a business unit team, this analysis suggests ways to improve business unit strategy, communications, and operations. The analysis also offers insights for pricing policy and helps to sort out design and new product development issues.

Fourth, he showed how to assess your added value, in monetary units, by attribute, head-to-head versus each key competitor. This monetary value analysis helps sales representatives and key account executives understand and communicate the added value of their offer versus the individual customer’s best alternative. This analysis also provides insights for pricing tactics.

If you have performance and price data versus competitors, CVI can help you to (1) carry out a monetary analysis of customer value, and (2) develop, quantify, and simulate alternative value propositions. CVI can also help you learn how to use CVI's software developed for carrying out the monetary calculations, analyzing customer value, quantifying value propositions and simulating actions to reach your selected value proposition, and developing a Value-Strategy Toolkit™ for business strategy. CVI's software is available for beta testing in 2001 and for lease, by individual, in 2002.

Managing Relative Price and Performance to Improve John Deere's Value Proposition
David Reinders & Ron Sipes, Deere & Co. Construction Equipment

Benchmarking Your Businesses Against Bradley Gale's Price-Performance database
Bradley Gale & Susan Gale, Customer Value, Inc.

Bradley and Susan Gale reviewed phase 1.0 of the Price-Performance database that they are developing with Don Swire at CVI. Here are items of special note to Network members:

First, the exhibit sequence for several categories was designed to reveal the visual display power of a value map, perhaps the most important tool of CV analysis. Bradley asked participants to quickly state which brand offered the best or worst value in a category and what were the pricing issues. They began by looking at a chart with columns of data on price and performance. The group had difficulty answering the questions at this point. Next they looked at a plot of price versus performance. Finally, they viewed a value map with a fair value line and fair value contour lines. The fair value line represents the average trade off of price for performance in a category. It also represents a CV ratio of 100% versus the average of brands in the category. The fair value zones in this presentation represent a value band between 95 and 105. The fair value line and fair value zone made it easy for people to quickly determine which brands are in the best and worst value positions.

Second, Bradley encourages participants to select the categories that would best communicate to their management team the idea of using a value map to assess their organization's competitive position in a category. He also encourages participants to find published data on their own products or to put their data from market research onto a value map complete with a fair value line and fair value zone.

Third, Don Swire introduced the new "Price-Performance Booklet" — a four-page document with standard front and back covers and a customized centerfold that contains a value map for a particular category. Members are encouraged to find published data on their products (or supply data from market research) to receive a free P-P Booklet with their category as the centerfold.

Fourth, once the P-P database has enough categories, we will be able to present findings on research across the categories and to calibrate value, price, and performance metrics.

From October 2001 European meeting hosted by Solvay S.A.

Customer Value & Business Excellence at Solvay
Claude Declerck, Solvay

Solvay's Approach for Customer Satisfaction Surveys
Alain Avau, Solvay

Using Customer Value Mapping to Identify How Your Customers Create Value in Their Broader Economic Space
David Brookfield, Honeywell

Benchmarking Your Businesses Against Bradley Gale's Price-Performance database
Bradley Gale & Susan Gale, Customer Value, Inc.

Bradley and Susan Gale reviewed phase 1.0 of the Price-Performance database that they are developing with Don Swire at CVI. Here are items of special note to Network members:

Fourth, once the P-P database has enough categories, we will be able to present findings on research across the categories and to calibrate value, price, and performance metrics.

Estimating the Monetary Value of Your Offering vs. Other Products (Using the Fair Value Line and Customer Value Accounting)
Bradley Gale, Customer Value, Inc.

Second, Bradley used data from expert evaluations of desktop PCs to estimate Dellís customer value delivered versus Compaq and other vendors in the category. He noted that Dell displaced Compaq as #1 in desktop PCs in 2000.

From February 2001 European meeting hosted by BOC Gases

Linking Brand Issues to the Customer Perceived Value Choice Model
Rory Morgan, Research International

Rory Morgan, R&D Director of Research International, criticizes the ill-defined use of terms such as "equity" and "loyalty" in marketing. He suggests that there has been little success in reconciling different interpretations, despite the need for objective definitions in research. In identifying a distinction between those who define loyalty in terms of emotional affinity to brands and those who regard it in terms of purchasing behavior, Rory feels that each approach has generated its own research methodologies, but that these are unconnected. An outline description is given of Research International’s model for integrating various branding topics with the aim of successfully predicting purchasing behavior.

Building Brand Value through Customer Value Management
Kevin O’Brien, BOC Gases

Kevin O’Brien, Director of Sales and Marketing, describes the launch of BOC Gases' successful Customer Value Program as a response to eroding market share. To understand why it was losing business, BOC carried out a market segmentation study. The study revealed that the company was trying too much to be a one-size-fits-all supplier, with the result that many customers found better value elsewhere. To overcome this problem, BOC developed a range of different service packages ranging from the bare bones to the full service end of the service spectrum, priced accordingly. The packages were each designed to appeal to at least one large sub segment of the market. This revised set of value propositions is allowing BOC to move toward different, improved positions along the fair value zone. The new segmentation scheme also provided a structure for redesigning the company’s communication strategy. The sales force was halved in size, yet communication was improved, mostly through innovations in call center and customer relationship management. Some of the CVM market segmentation, service package, and branding steps developed in the UK are now being rolled out globally.
(Presentation not available)

How BOC Measures of Customer Value Ensure Operational Focus
Clive Morton, BOC Gases

Improving service depends on front line performance — in BOC Gases’ case, by the drivers delivering cylinders filled with gas to the customers. It is important for everyone in the organization, especially at the service delivery level, to understand what the customer needs and how the company is perceived as performing. In this presentation, Clive Morton, BOC manager for Group Products and Services, outlines the research process that produces customer satisfaction and customer value data for BOC and disseminates the results to throughout the company. BOC has a Customer Value program that involves regular telephone interviews with thousands of customers. The survey reaches BOC customers and competitors’ customers so that ratings of comparative value and satisfaction are possible. After analyzing the results of the survey, the key findings are packaged and distributed to each of BOC’s six UK operating regions. This survey cycle repeats every six months.

Previewing Bradley Gale's Price/Performance Database
Bradley Gale and Donald Swire, Customer Value, Inc.

Bradley previewed a Price-Performance database that he is developing with Don Swire at CVI. Here are items of special note to Network members:

Fourth, once the P-P database has enough categories, we will be able to present findings on research across the categories and to calibrate value, price, and performance metrics.

e-VOC— Using the Internet to Share VOC Information with the Whole Enterprise
Nick Giurietto, Cable and Wireless.

Nick Giurietto, Global Director of Loyalty for Cable and Wireless demonstrated C&W's online survey and analysis capability, using an Internet link up during much of his presentation. C&W turned to online surveys to overcome some historical deficiencies in its customer satisfaction system including inconsistencies across business units, a long 4-month lag between survey and results, high expense and limited distribution of results. Going online allows C&W to make survey results instantly available for executives at all levels. The results are also used operationally; dissatisfied customers are identified and e-mails are triggered to alert the responsible account managers to the emerging problems. The software Nick demonstrated allows one to order attributes in several different ways and allows people to use tables or graphs of the survey findings depending on their preferences. Exhibits generated from the review of survey data can be selected and inserted in presentation packages for action workshops or for distribution to C&W operating teams.

Linking Customer Perceived Value and the Lifetime Value of a Customer
Donald Swire, Customer Value, Inc.

Don Swire points out that the term Customer Value can be applied to any of a handful of distinct concepts, each of which is useful in its own right. Customer Perceived Value, the assessment of the attractiveness of your products relative to competitors, and Customer Lifetime Value, the economic value of your customers to you, are two concepts that today’s managers should understand. Don showed what these concepts are, how they are applied, and how they can be used together to benefit your organization.

Don also demonstrated the CLV Strategist; a spreadsheet that calculates customer lifetime value based on inputs that show how customers switch from one supplier to another. (This spreadsheet is available for download from the CVI web site for members of the Customer Value Network.) The spreadsheet integrates the concepts of customer loyalty, brand switching, customer profitability, growth, and market segmentation. The format makes it easy to specify “what-if” scenarios that evaluate the worth of certain customers (or classes of customers) as an aid to focus marketing activities.

From February 2001 North American meeting hosted by Nortel Networks

The Customer Value Analysis and Reporting System at Nortel Networks
Kahlid Hafiz, Nortel Networks

Kahlid Hafiz, Research Director of Customer Value and Loyalty, is the subject matter expert in customer value analysis and modeling at Nortel Networks (and prior to that at AT&T). Kahlid presented an overview of customer value analysis at Nortel. Here are two items of special interest to CVN members.

First, Nortel has developed an integrated CV measurement system, represented as a pyramid in the presentation exhibits, that links competitive, decision-maker, and transaction surveys to customer-defined metrics and process metrics. The surveys and metrics link together for analysis and identification of improvement steps.

Second, Nortel has developed a "six pack", a set of six standard exhibits, used for presenting customer value research findings to operating business unit teams. The "six pack" includes (1) a value map (relative or absolute scales), (2) a chart showing the "drivers" of relative customer value, (3) a "lead lag," or head-to-head, priority chart showing Nortel's performance versus a key competitor on the product and service attributes (4) a "lead lag" priority chart for price, (5) a "trend indicators" chart showing changes in performance from one period to the next, and (6) a "key detail matrix," a spread sheet that tracks the performance of Nortel and key competitors over time.

Other items to note: Nortel has a corporate policy on customer value. Nortel constructs a customer relationship index from the service attributes in its CV model. Nortel makes extensive use of its Intranet site to disseminate CV research findings and analyses to operating units.

How the Global CVM Team Brings "voice of the customer: to Nortel's Time-to-Market Process and Balanced Scorecard
Gail Misener, Nortel Networks

Gail Misener is a member of Nortel's customer value and loyalty team responsible for using customer value analysis to drive strategy and new product development. Rapidly introducing new products that have a high probability of commercial successes is important to a high-tech company like Nortel. Gail focuses on integrating customer value into Nortel's "time to market" process for launching new products. Insights from customer surveys, interviews, and focus groups are introduced throughout the new product development process.

Evidence Linking Customer Value to Business Results
Bradley Gale, Customer Value, Inc.

Bradley Gale has long been interested in linking customer value position and metrics to business results. In this session the group discussed two kinds of evidence — anecdotal case examples and empirical evidence from over 3000 business units in the PIMS database. In several industry case examples, companies that have been pushed into the "wither and die zone" of a value map have not survived. Bradley encouraged the group to find case examples from their own industries that would resonate with their management team.

The group discussion indicated that the empirical evidence linking CV position to profitability and change in CV position to change in market share would be most interesting and compelling to business heads and general managers who carry P&L responsibility. CEOs will be most interested in the evidence linking CV metrics and position on a value map to stock-price multiples.

Employee & Customer Perceptions and Satisfaction Levels: Are They Related?
Jeff Wides, AT&T

Jeff is the Manager of Customer Loyalty at AT&T Business Services. He reported research findings linking employee and customer perceptions and satisfaction levels. The data are based on a cross section of 21 regional operating units of Lucent Technologies where Jeff worked prior to joining AT&T. The data show a modest positive correlation between customer and employee views.

To conduct this type of analysis your organization needs to use comparable questions on employee surveys and customer surveys. A write-up of Jeff's research is available in the Customer Value Network Members' Lobby on the CVI web site.

The BCE Research Model in A Fully Integrated Knowledge Management Approach
Yves Dussaut, Bell Canada

Yves Dussault is Associate Director of the Market Knowledge Center at Bell Canada. Yves delivered a presentation designed by Michel Saulnier, Director of Market Research and Customer Value Management at Bell Canada.

This session focused on how Bell Canada’s Market Knowledge Center of about four-dozen people works with internal clients and external vendors to provide research support and insights for Bell Canada’s operating units. The Bell Canada system is a fully integrated knowledge management approach that relies heavily on Bell’s Intranet.

What gets in the way of understanding and delivering what customers need? How have our CV analyses broken through these barriers?
Joe Murdock, GALE Consulting

Joe Murdock, President of GALE Consulting, outlined eight syndromes that can block an organization’s ability to recognize what customers really value. During the lively discussion we noted that some syndromes were based on an idea like "technology solves all" or "efficiency first" that are crucial in some industries. But, by obsessively focusing on a single item, a company can miss other key buying factors that make the difference in which vendor wins in the marketplace.

Joe outlines three specific steps in the CV implementation process as a practical way to break through the syndromes that block an organization's ability to understand the full set of criteria that customers use when choosing among competingsuppliers.

Key-Customer Relationship Management: Acting on the Research Recommendations and Measuring Results
Bill Twardy, Salt River Project

Bill Twardy is Manager of Market Research and Information at Salt River Project. He has been an active member of our Network for about six years. He reported on the research findings about customer loyalty intentions based on interviews with key accounts.

Bill presents a closed loop case example in which Salt River Project surveyed key accounts, outlined action steps, took action, surveyed again and found that they had moved the needle on loyalty intentions. The program has been expanded to a larger fraction of the commercial customers and SRP executives feel that they have increased their chances of retaining these customers.
(Presentation not available)

How Customer Value Analysis Fits into the Baldrige Criteria
Joe Muzikowski, Solvay Polymers

Joe Muzikowski, Vice President for Total Quality at Solvay Polymers, is also a judge for the Baldrige National Quality award. As a big proponent of both Business Excellence and Customer Value, Joe shows how the Baldrige Excellence model and customer value analysis reinforce each other.

In this presentation, Joe demonstrates how the Baldrige criteria are derived from the core values of a business enterprise. These values include visionary leadership, customer driven excellence, organizational and personal learning, valuing employees and partners, agility, focus on the future, managing for innovation, management by fact, public responsibility, a focus on results, and a systems perspective. Joe shows how customer value fits into the Baldrige framework that guides the leadership and operations of the business to generate superior business results.

Previewing Bradley Gale's Price/Performance Database
Bradley Gale and Donald Swire, Customer Value, Inc.

Bradley previewed a Price-Performance database that he is developing with Don Swire at CVI. Here are items of special note to Network members:

Third, Don Swire introduced the new "Price-Performance Booklet", a four-page document with standard front and back covers and a customized centerfold that contains a value map for a particular category. Members are encouraged to find published data on their products (or supply data from market research) to receive a free P-P Booklet with their category as the centerfold.

Fourth, once the P-P database has enough categories, we will be able to present findings on research across the categories and to calibratevalue, price, and performance metrics.

Linking Customer Perceived Value and the Lifetime Value of a Customer
Donald Swire, Customer Value, Inc.

Don also demonstrated the CLV Strategist, a spreadsheet that calculates customer lifetime value based on inputs that show how customers switch from one supplier to another. (This spreadsheet is available for download from the CVI web site for members of the Customer Value Network.) The spreadsheet integrates the concepts of customer loyalty, brand switching, customer profitability, growth, and market segmentation. The format makes it easy to specify “what-if” scenarios that evaluate the worth of certain customers (or classes of customers) as an aid to focus marketing activities.