Creating the "Value Moments" name
Back in 2007, I had already decided that the traditional methods of conducting customer satisfaction research was outdated and provided little focus for organisations to identify the key issues that dissatisfied customers and then resolve them.
This is where the whole concept started to gain serious momentum. We were almost 12 months into our research and analysis and surrounded by data, frameworks, trials and doing some deep thinking. However, we still didn't have a name.
The term "Value Moments" came to me while, watching something boring on TV one night; while letting my mind wander on the subject of customer satisfaction and measurement. Out of the blue the words Value Moments came into my mind.
The next day I thought about the "Value Moments" term. The more I thought about it, the more I thought it made sense. The words "value" and "moments" seemed to fit with everything we were trying to achieve in our research. And, more importantly, everything that organisations were trying to achieve when they target customer service improvements.
The thing was, Value Moments was such a strong concept - and powerful name - I thought someone must have thought of this concept before. I mean, it's not rocket science! So, I Googled it; fully expecting it to be alive and kicking. To my astonishment the concept was not even close to being mentioned, considered, thought of, registered, or implemented anywhere that I could find. The search continued for 3 months whilst I established the uniqueness of Value Moments. In the end, we gave up - it was clear that Value Moments had never been even mentioned before. So, we registered the concept and some of its components as registered trademarks.
Once we had the name, the concept developed real momentum. We tackled each of the priorities, trialing and testing ideas time and again. At the end of the process we came up with this definition:
"VALUE MOMENTS are those instances and interactions that make the difference in improving the customer experience, additionally contributing towards increasing customer retention and loyalty.
"The customer experience - from start to finish throughout the life of the experience - is littered with VALUE MOMENTS that have an intrinsic input into whether the customer 'values' the relationship with the business or organisation".
VALUE MOMENTS are not all equal from a customer perspective; therefore, we have to apply a weighting to each of them.
Customer satisfaction is a moving target and today's VALUE MOMENTS may evolve over time; the VALUE MOMENTS process is designed to track this movement on an on-going basis.
VALUE MOMENTS align and focuses an organisation's efforts in the areas that contribute most to a 'perfect' customer experience.
Through all of these elements, VALUE MOMENTS aim to give organisations a powerful competitive edge over their competitors.
Touchpoints and Value Moments
“A touchpoint (Value Moment) is any time a potential customer or customer comes in contact with your brand–before, during, or after they purchase something from you”.
Customer Journeys (and Journey Maps) are full of “touchpoints”,
HOWEVER NOT ALL TOUCHPOINTS ARE EQUAL IN THE MINDS OF YOUR CUSTOMERS!
Value Moments offers a new perspective on how customer experiences should be measured, managed and improved. This revolutionary concept will enable organisations to effectively target those Value Moments which deliver the highest impact on customer satisfaction and loyalty.
The key question every organisation needs to ask – “Do you understand which moments in the customer’s experience contributes most in delivering and exceeding customer expectations and impacts on satisfaction and loyalty”?
Each moment within a customer’s experience in dealing with an organisation is not equal.
Value Moments allows organisations to diffuse the current customer experience, segment and analyse the customer interaction points (touchpoints) and devise a blueprint that shows which are more significant in heightening the overall customer experience, thereby customer satisfaction.
Value Moments aligns and focuses an organisation’s efforts in the areas that contribute most to a "perfect" customer experience.
Nine years have passed since the Value Moments book was published and since then many thousands of surveys have been completed using the concept and many organisations have benefitted from understanding how to prioritise the touchpoints to improve customer experience across every channel.
The original Value Moments concept provided detailed calculations and options for quantifying different levels of Value Moments.
Figure 20: Value Moments “value scale”
Each of the chosen attributes are weighted using the following Value Moments (VM) scale:
VMI0: An attribute is weighted as a VMIO when it is regarded as having extremely low value for the customer. The presence of this attribute leads to customer satisfaction but only to a very small extent and hence each attribute is given a score of ten points.
VM20: An attribute is weighted as a VM20 when it is regarded as having low value for the customer. The presence of this attribute leads to customer satisfaction but only to a small extent and hence such an attribute is given a score of twenty points.
VM30: An attribute is weighted as a VM30 when it is regarded as having some value for the customer. The presence of this attribute leads to customer satisfaction but not to a large extent and hence such an attribute is given a score of thirty points.
VM40: An attribute which is weighted as aVM40 is considered to have high value for the customer. The presence of this attribute leads to significant improvement in customer satisfaction levels. Such an attribute is given a score of forty points.
VM50: An attribute which is weighted as aVM50 is considered to have very high value for the customer. The presence of this attribute leads to an extremely significant improvement in customer satisfaction.
Within the original book, I created an “customer loyalty” question, we gave it a VM100 weighting:
“Based upon your most recent experience with us, how likely is it that you would spend your money on using us again”?
There's one more crucial element in the Value Moments system. It doesn't affect the overall Value Moments score, but it's a powerful barometer of your customers' thoughts - and actions. It is the Value Moments Loyalty question (VM100).
When developing the Value Moments Framework, we wanted to identify if there was "an ultimate question" that would be a powerful indicator of a vital outcome - future spend and loyalty. Our thinking was born out of the Pinpoint research methodology we had developed years earlier. The Pinpoint methodology was based upon asking customers a single question regarding their level of satisfaction.
Then, depending on their response, the researcher would ask additional questions to identify - in precise detail - what was driving their level of satisfaction. The Framework was structured around the 5Ps Service Quality Framework mentioned earlier. What did Pinpoint teach us? Well, the findings from using Pinpoint across a host of industry sectors were that the key drivers of dissatisfaction mainly relate to issues around People and Processes.
Therefore, when we were developing Value Moments, we wanted to establish whether there was a similar question we could ask that would be a forward-looking predictor of future spends and loyalty. The VM100 Question performs this role.
In structuring this question, we completed a significant amount of research and analysis to define the precise words to use. This is what we came up with:
Based on your most recent experience(s), how likely is it that you would spend your money on using us again?
The crucial aspect of this question is "spend your money", as this gives us a driver that other similar questions do not provide. For example, asking an old favourite of the research industry -"Would you refer us to family and friends?" is not the same as asking a customer if they would spend their own money again.
Is the question the "silver bullet" that guarantees repurchase intent? It certainly won't be all of the time. Further research is still required in this field. We know from many years of our own research (and research by many others) that a host of factors influence future spend, not just satisfaction and Happiness. They include loyalty programmes, pricing and locality. But while the VM 100 Question is no silver bullet, it is a crucial pointer for the organisation to determine what they must get right to ensure that customers remain loyal and keep spending.
Furthermore, the VM100 Questions correlate strongly with the rest of the Value Moments process and the VMPI score. Let's look at this correlation in a little more detail, and why it's so important.
Question: Based on your most recent experience(s), how likely is it that you would spend your money on using us again?
Based upon our research, we discovered the following trends when asking customers this question:
What this is telling us is quite clear and concise: get the key Value Moments right and you have a better chance of retaining customers than if you get the key Value Moments wrong!
This direct correlation between intent to repurchase and successfully delivering great customer experience in the areas that matter (key Value Moments) is immensely valuable to organisations. It helps senior managers understand customer expectations, which in turn helps them to focus improvement initiatives in the right places, prioritising the things that matter most for the customer
The key value moments are the factors that condition customer attitudes towards a brand, product or service and attitudes are a good predictor of behaviours’ and thereby the affect that good or bad attitudes by customers are likely to lead to similar outcomes for the organisation.
Written by Hussein Shabbir, Jan 05, 2018
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