.png)
How to use the Customer Value Proposition Matrix to understand the problem you solve for your customer
It never ceases to amaze me how many businesses are looking inwards for the answers to their proposition and positioning, rather than their customers and the problems they want you to solve.
Understanding customer needs and aligning your brand offerings accordingly is crucial, but you already know that. Enter the Importance vs Performance Matrix, a strategic tool that helps businesses evaluate the significance of various attributes and their impact on brand success. In this blog post, we’ll delve into the matrix, exploring how high or low importance and performance levels shape a brand’s position and allows them to connect on a far more authentic level with the audience.
The Importance vs Performance Matrix: The framework explained
Attributes Assessment:
Start by listing the relevant attributes associated with your brand and those of your competitors.
Rate each attribute on a scale of 1 to 10 based on:
Importance: How crucial the attribute is to your customers.
Performance: How well your brand delivers on that attribute.
If you don't know, you need some qualitative data first
Quadrants of Impact:
The matrix divides attributes into four quadrants:
High Importance, High Performance (Top Right):
These attributes are critical to customers, and your brand excels in delivering them.
Maintain and enhance these strengths.
High Importance, Low Performance (Top Left):
These attributes matter greatly to customers, but your brand falls short.
Focus on improving performance to meet expectations.
Low Importance, High Performance (Bottom Right):
These attributes are less critical, yet your brand performs well.
Consider whether resources could be better allocated elsewhere.
Low Importance, Low Performance (Bottom Left):
These attributes have minimal impact, and your brand performs poorly.
Re-evaluate their relevance and allocate resources wisely.
Customer Value Proposition: Examples in Action
Package holiday
Choice of destinations:
High importance: customer wants to be inspired to travel somewhere new
High performance: brand has packages across Europe, the US and the Indian Ocean
Strategic move: create content focussed on new ideas and experiences
Day out in London
Appeals to a family with young children:
High importance: Family are considering length of experience, content, accessibility and price
Low performance: No family ticket price, nowhere to leave a pushchair, only fine dining food options.
Strategic move: Create a family friendly package and expand your market (if your product is suitable
Destination: city of Berlin
Places to relax and do nothing
Low importance: travellers visiting Berlin want to soak up the music scene, food, culture and history
Low performance: Berlin is not a city of sun loungers and places to sit about wandering what to do!
Strategic move: Don't try to diversify away from the things you do brilliantly when there is no market for other options.
Train travel brand
Premium travel options
Low importance: customers are looking for fast, efficient and cheap ways to travel.
High performance: The company has decided to focus on largely premium carriages at a higher price offering reclining seats and free refreshments.
Strategic move: Qualify if there is a large enough customer based to focus purely on this area, if not, go back to the drawing board and focus on what customers want from you.
Conclusion: Takeaways for the Customer Value Proposition
The Importance vs Performance Matrix guides brand strategy by pinpointing areas for improvement, optimising strengths, and aligning resources effectively.
Remember, it’s not just about what you offer; it’s about meeting customer expectations and being situationally relevant - what is important to your customer in today's situation and how can you make yourself relevant. So, evaluate your brand attributes, plot them on the matrix, and figure out where your attention really needs to be focussed.
Sources:
Want help addressing the high importance, low performance quadrant?
I help brands to sort out the messy middle between what you do and what your customer really wants 😊🔍
Comments