Business Consultants, Bristol, Somerset and South West

What do we mean by improving customer value?

Well in the context of Lean and Six Sigma it’s not about value added services such as an airline offering car hire at destination, or even reduced prices for products or services.  These are part of the business marketing mix. Improving customer value in our context means only doing those things within our process that the customer is ultimately prepared to pay for.

Home removals example

Many removers send assessors to meet clients, assess what needs to be done and price the job accordingly.

This can be seen as good customer service, but it does introduce some costs, delay and inconvenience, none of which adds value to the client’s desire to be moved.  Assessment is more about planning the job for the removers benefit, and is therefore not something the customer is ultimately prepared to pay for.

A Lean alternative would be to use Skype and web-cams so the customer takes the assessor on a virtual tour of the property and contents.

The benefits of this approach:

• Saving the need for an assessor to visit, including the time and cost of travelling and waiting;
• More assessments can be arried out each day;
• No need to write such a detailed assessment report;
• The video provides a record of the assessment to resolve (or prevent) any disputes which may arise;
• Easier to schedule virtual appointments to suit the customer;
• Cost savings can be passed on to the customer.

In a world when more and more business is conducted over the internet, and when most homes have the necessary technology, there is likely to be a high degree of acceptance, and even enthusiasm for such a system.

The actual removal staff can act as the ambassadors for the business whilst they give the customer the highest value when moving their furniture.

Airline check-in example

 from big business.  A customer who wants to fly from London to Rome ultimately only wants to pay for their seat on the plane and not the cost of check-in, producing a ticket etc.  The latter are non-value added as in theory the customer could just walk onto the plane, pay and go. 

So the introduction of on-line check-in by airlines not only offers a convenience to customers by streamlining the process, but also reduces the non-value added cost of a check-in desk and printed ticket.

Can you think of an exmaple in your business?

Also see:

Proven ways to improve your profits?
What does Lean mean for me?
How do I go about it?

For advice and support with using Lean or Six Sigma in your business, contact us using the form to the right, or email info@mgarnerconsulting.co.uk or ring us on 0800 242 5287.