Words: Brad Horan

Meet Jane. She’s a cleaning business owner, facing a tough economic climate with declining customer renewals, fewer referrals and stagnant growth. 

With high interest rates and skyrocketing costs of living, she initially attributed these challenges to external factors and felt frustrated and uncertain about the future of her business.

The struggle and realisation

Despite her best efforts, Jane’s business continued to struggle. She felt the weight of the declining performance and knew something had to change. 

It was during a workshop that Jane had a breakthrough moment. The facilitator asked, “Do you truly understand what your customers need?” 

This question lingered in her mind, leading to a profound realisation that the real issue wasn’t just the economic climate but a deeper problem: she simply didn’t understand what her customer wanted from her business.

Why understanding customer needs matters

Jane learned that truly understanding her customers was crucial for her business’s success. She discovered that the customer experience could be measured using financial metrics. Financial metrics are used to evaluate and assess the financial performance, health and stability of a company. They can also provide valuable insights into customer preferences. 

This realisation was a turning point for Jane, as she understood that without this knowledge, her business would continue to struggle.

The ultimate customer value metric

Jane adopted the Ultimate Customer Value Metric, an integrated approach combining four key financial KPIs: cost, speed, quality and service. 

These metrics reflect the psychological process customers go through when making buying decisions. 

• Cost: Customers assess the cost of a product or service, weighing the price against the perceived value. 
• Speed: Customers evaluate how quickly they will receive the product or service. 
• Quality: Customers judge whether the quality of the service meets their expectations and specific needs. 
• Service: Customers look for assurance that they will receive the necessary support throughout their service. 

Engaging the team

Armed with this new understanding,Jane knew that success depended on her frontline staff. 

The team quickly discovered that when they came up with ideas to reduce costs, they had to consider the impact on speed, quality and service. This holistic approach allowed them to develop more innovative and effective solutions.

The team’s enthusiasm grew as they realised the potential of this new system. They were already customer-focused and eager to find ways to enhance customer satisfaction. 

By considering all four KPIs together, they could see that any changes made would benefit the customer in multiple ways.

The benefits of adopting customer value metrics

What happened next?Jane soon saw significant improvements in customer understanding, service delivery, staff engagement and natural business growth. 

One of Jane’s long-time customers told her: “I’ve noticed a significant improvement in the quality and speed of service. It’s clear that your team truly cares about us as a customer.”

The benefits didn’t stop there. The company also experienced more repeat customers, an increase in referrals and overall improved customer satisfaction. 

The staff, now more engaged and focused on the customer, felt more motivated and appreciated in their roles.

Why you should consider this approach

If you’re a business owner facing similar challenges, understanding your customers’ needs and satisfaction is crucial for your success. 

By adopting the Ultimate Customer Value Metric, you can gain valuable insights into your customers’ preferences, improve your service delivery and drive business growth. 

Don’t wait until it’s too late – take action now to stay ahead of the competition and ensure your business thrives.

About the author:

Brad is the director of Lucrature – Business Growth Consultants. He has developed AI tools to support clients with developing strategies, analysing pricing, and creating marketing content. Email Brad at bhoran@lucrature.com.

Photo by Antoni Shkraba on Pexels.