The Voice of the Customer

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Transcript

Now it's time to move on to the sixth theme of Lean Accounting, which is to drive the growth of the business by increasing customer value. And the first thing that we need to talk about is the voice of the customer. The voice of the customer is a term from lean, and it describes the importance of customer value in lean. It's the customer that defines the purpose of your business processes, the outputs that they want, the quality that they require, the delivery, performance, and so on, are all defined by the customer. Together, they comprise the voice of the customer, and lean we seek to maximize the value to the customer. So the voice of the customer is about understanding the customer's true demand.

In terms of the price they're willing to pay, the delivery performance, they want, the quality, they want, the performance and specification that they want. That is the voice of the customer. The voice of the customer is about the value that the customer wants. From the goods and services that you provide for them and the customer experience that they have in dealing with you. So what is customer value, customer value is that combination of attributes which the customer perceives as beneficial. So your value proposition to the customer combines the function of the product or service a specification is quality, the price, the timing of delivery or availability, the choice they have.

And also together with the image or the brand that your organization projects and the relationship and customer experience that you provide. together those things make up customer value. That means it's important for the organization to know what the customer perceives are providing value for them. How the function and specification of the products or services provide value, the quality, the price they're prepared to pay, and so on. And it's important to know which activities in our business process, add value for the customer, then what does the customer want from your process? What do they like about the process?

And about your service, your customer experience? What do they dislike about the process and your service? that's particularly important how you damaging customer value with certain issues or aspects of your process, or your policies. customer value is about the right quality at the right time, at the right price, and in the right place. questions that you might ask to help you determine the voice of the customer, of all your customers. Who are your major customers?

What do they actually want from your processes? What features of the process are most important to the customers? And how, if at all, does each step in the process add value for them? What features of your process cause frustration or annoyance to your customers which steps in the process or which activities cause those issues? The overall question is, how effectively is your organization's culture focused on customer value? And how does Lean Accounting help with this focus on customer value?

Well, if we align our performance measures with issues that the customers value, for example, the order to delivery time, the quality, the delivery performance, the returns performance, complaints, service, performance, and so on all of these things which can be lean measures for our process, then we're beginning to reflect customer value through the weekly measures that we monitor in the box score, and manage as a team. And when we use these metrics in the weekly box score, over a period of time, we begin to see how improving the metrics improving the performance of the process in terms of these metrics, impacts positively on financial performance, and I would suggest we need At least say 12 weeks of data for that, probably more. But the benefits of aligning our performance measures with customer value with monitor them weekly in the box score and improving them over time a clear customers who feel that they are getting excellent products and services at reasonable prices, more likely to repeat purchase, and they're more likely to refer the organization to others.

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