What is CVA?

CVA is the heart of revenue generation and retention. Essentially, CVA measures your performance in comparison to your competitors and relates changes in your perceived performance to revenue.

The overarching premise of CVA is that Value equals Product and Service Quality relative to Price Satisfaction (V = PSQ | P_S).

In a CVA program, customers are queried regarding a series of product and service attributes they deem important. Customers rate the quality of your performance on these attributes as well as the performance of your competitors. Satisfaction with price is also measured and then a CVA score is developed.

CVA can be measured on a per customer basis and then compared with that customer’s revenue. In the aggregate, CVA research has demonstrated that customers who have higher levels of satisfaction (and other key measures) produce more revenue.

Moreover, CVA ratings, and the ratings of sub-components, the product and service attributes, are correlated with internal metrics that correspond with the customer-driven attributes, to identify exactly what processes could be targeted for improvement (based on their importance to the customers) and with improvement, would generate higher satisfaction and the consequent revenue.