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CUSTOMER VALUE INDEXSM


What is Customer Value IndexSM?


Customer Value Index is a measure of overall efficiency and effectiveness of the resources deployed by an organization in creation of value for its customers

 

  • Using the analogy of organization as an expensive car (people, processes, systems, other resources etc.) the Customer Value IndexSMmeasures the amount of time a car was actually moving (working time) vs. stalled (waiting time) in delivering (combined working time plus waiting time as total delivery time) products or services to a customer - the efficiency of the resources deployed.
  • Of the time this car was moving (working time), the Customer Value IndexSM measures how much of that time was actually toward the customer’s direction (adding value to customer) - the effectiveness of the resources deployed.
  • The Customer Value IndexSM  value is the measure of time an entity is actually working (efficiency) and the degree to which this work is value adding to the customers (effectiveness).


Do you believe you can be the best in your business?   


We do!  Let’s us show you how.


After analyzing dozens of organizations in multiple industries, the average Customer Value IndexSM of a company with multiple business processes is six on a scale of 1-100, 100 being the highest customer value adding entity. (See graphic)

 

That means, an average company has a theoretical potential for improving its performance by about 17 times.


Imagine the competitive advantage you will gain by just doubling your performance! And then imagine consistently increasing differentiation with competitors over a long period of time as you continue to improve your performance at that or higher pace.


Additionally, this fact based data acts as powerful tool to motivate and challenge your internal team to rethink and redesign to be the best in the business, instilling a culture of excellence and innovation with the potential for sustainable increasing returns on your investment.