Customer Value in addition to the core measures and objectives, measures are needed that drive the creation of customer value and, thus, drive the core outcomes. for example, increasing customer value builds customer loyalty (increaser retention) and increaser customer satisfaction. Customer value is the difference between realization and sacrifice, where realization is what the customer receives and sacrifice is what is given up. Realization includes such things as product functionality (features), product quality, reliability of delivery, delivery response time, image, and reputation sacrifice includes product price time to learn to use the product operating cost, maintenance cost. and disposal cost. Recall that the cost incurred by the customer after purchase are called post purchase costs.
The attributes associated with the realization and sacrifice value propositions provide the basis for the basis for the objectives and measures that will lead to improving the core outcomes.The objectives for the sacrifice value proposition are the simplest decrease price and decrease postpurchase costs. Selling price and postpurchase costs are important measures of value creation. Decreasing postpurchase costs decreases customer sacrifice and thus increases customer value. Increasing customer value should favorably impact most of the core objectives. Similar favorable effects can be obtained by increasing realization. Realization objectives, for example, would include the following: improve product image and reputation. Possible measures for these objectives include, respectively, feature satisfaction ratings, percentage of returns, on-time delivery peccentage, and product recognition rating. Of these objectives and managerial behavior, indicating the need to be careful in the choice and use of performance measures. Any of these measures would be appropriate for assessing and improving value stream performance