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Designing Customer Value Index

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  • Vinita S Sahay

Abstract

The greatest challenge for industries these days is to incorporate customer voice into design of product and service offering so that maximum customer value can be delivered to the customers leading to their satisfaction and positive impact on bottom line. In this paper a model has been proposed to measure customer value. This model involves classification at hierarchical levels of value. Each hierarchical level includes value elements according to the nature of value generators. Levels and value generators are illustrated and value elements are identified. This classification scheme is utilised to compute total customer value and total customer cost to arrive at computed value of customer value index. The strength of the model lies in its flexibility to address complexities for a wide range of customer value index.

Suggested Citation

  • Vinita S Sahay, 2004. "Designing Customer Value Index," Vision, , vol. 8(2), pages 81-88, July.
    • Handle: RePEc:sae:vision:v:8:y:2004:i:2:p:81-88
    DOI: 10.1177/097226290400800208
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