DO YOU KNOW WHAT YOUR

CUSTOMERS WANT?  ?!  #


YOU COULD!
Customer Equity Analysis can help. And you
will need to use your IT strategically alligned.
VALUE EQUITY

Quality, Price, Convinience

Customer Equity is described in three components - "value", "relationship"

CUSTOMER and "brand". Through your already existing custiomer touch points, you

RELATIONSHIP
EQUITY can gather data which can help you draw "What is most valuable to your
customers?" [Fig.1], "Comparision of your performance against competitors
Loyalty, affinity, community/ [Fig 2], and deeper insights into each element of Customer Equity [Fig. 3]
knowledge building programs BRAND EQUITY

Brand awareness/attitude,
corporate ethics, emotional tie

What customer's said about their

needs/wants
Fig. 2: Comparision of you (firm) with 2
other players/competitors along the
What customer's said about their three "customer equities"
needs/wants
Fig. 1: Comparision of what customers QUALITY PRICE CONVINIENCE
want, vs. what you (firm) is delivering
What customer's said about their
needs/wants along the sub-drivers
of "value" equity
Fig. 3: Comparision of what customers
want along "value" equity, vs. what you
(firm) is delivering
HOW DOES IT WORK?
Capturing data about customer
interaction in a centralized CUSTOMER
system is essential for this analysis SERVEYS

Once customer data is captured Randon selection of customers, once they have
in a centralized system, alligning requested service, or came in touch with the firm
technology at every cutomer facing for the purpose of gathering information(via
ends is important. Each customer surveys) to measure about customer equity
facing systems should be capable
of targeting the customers randomly

CALL CENTER Connecting all the customer touch points (call center,
internet, retail, etc.). The results of the survey (over a
HE
LP
DE
specified duration) is used to illustrateyour
SK
performance against a (sample) customer's
expectations [Fig 1], performance as compared
with your competitors [Fig. 2], or for creating a
RETAIL 60
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more drill down picture of each components of
50

40

30

20
00

00

00

00

0
equity [Fig. 3]
00
-10
00
-20
00

CUSTOMER
-30
00
-40

TOUCH POINT BUSINESS

INTELLIGENCE

INTERNET
PROFIT

Customer equity analysis allows many strategic

decisions to be taken, which may include
following --

-- Budgeting of Marketing spending to change

customer perceptions
BUSIN
-- Improving service/product performance to be
ESS M
ISSIO N alligned with the market needs
-- Evaluating, monitoring and measuring
VO
LU
M
effectiveness of business strategy
E
-- Calculating Life Time Value of Customer,
performing customer selection, and
segmentation

Ideation and design: Pradyot Rai, Concept: Customer Equity Management, Roland T. Rust, Katherine N. Lemon, Das Narayandas Graphics Design: Pradyot Rai (inspired by www.xplane.com)