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The Value Exchange Audit: Pinpoint the best points of value to maximise your customer's experience.
23 Jun 2021
So far in our Value Exchange playbook we have:
1. Defined value and the value exchange
2. Identified the key types of value
3. Understood the impact of the eight forms of waste on value
4. Applied the Peak End Rule to the customer journey to demonstrate the importance of the customer experience to the value exchange
What we’ve shown is that knowing where value lies for the customer has become critical, as satisfied customers lead to more customer loyalty and retention, positive word-of-mouth, a stronger competitive position, increased brand equity and, ultimately, higher market share.
The problem is how do you find out exactly where that value lies? And once you know, what do you do about it? Importantly, how about the areas that aren’t adding value – what can be done about these?
The bottom line is that customers always have an experience – good, bad or indifferent. The Value Exchange Audit’s job is to ultimately increase the number of good experiences by leveraging the value exchange within the customer journey.
Why is the Value Exchange so important?
Leveraging the value exchange within the customer journey is important because our research shows that doing so provides an average uplift in customer spend of 27 per cent. In its most simple form the Value Exchange Audit is a check-up that evaluates customer value, pinpointing the points of most effective value and diagnosing the inefficiencies in the customer journey. Like with most things, there is no ‘special sauce’, one size most definitely does not fit all. But by considering the 10 killer questions you will be well on your way to maximising customer value and understanding how you can feed the insight into your own customer journey and value exchange.
The Value Exchange Audit: 10 Killer Questions
1. Which are you most valuable customers? How are you defining valuable? Why are they most valuable to you? Why are you valuable to them?
2. Which touchpoints do your most valuable customers value most, and why?
3. Which touchpoints aren’t valued by your most valuable customers and why?
4. Are your most valuable customers advocates? If not, why not?
5. Who are your least valuable customers? How do you define least valuable? Why are they the least valuable? How much do they cost to serve?
6. What are the needs and missions you serve across the customer journey? Are any needs unmet or under met?
7. Why do customers come to you rather than a competitor?
8. What percentage of customers are return customers? And why do they come back?
9. What is the influence of post-purchase touchpoints on satisfaction, loyalty, and advocacy?
10. To what degree does the customer journey and value exchange currently influence our decision making?
By answering these killer questions you will be able to identify quick fixes that can be implemented in the short-term, but importantly also diagnose longer-term strategic recommendations which will enable you to maximise the value exchange and bolster the bottom line.
Founding Partner at The Thread Team