The model

The European Service Value Awards implement the idea of concentrating on services which generate real partner benefits in practice. The basis for that is the empirically proven and scientifically validated „7K Modell“ from the Customer Value research of the University of St. Gallen, which has now been extended to include Customer Equity.

The additional consideration and integration of Customer Equity allows for an integrated approach in considering the values of the partnership relationship between customer and company.

Contents of the 7K dimensions

  • K1: Definition of a clear process in customer service, knowledge of the benefits of the products and services, customer orientation as a performance feature of the company
  • K2: Uniqueness of the products, degree of innovation of products and services
  • K3: Reliability of statements, comprehensible, full and appropriate communication
  • K4: Cost transparency, fair pricing, cost-performance ratio
  • K5: Qualified employees, conveying appropriate expectations and tailored products and services
  • K6: Partnership relationship with the customer, keeping promises, mutual trust
  • K7: Problem solving skills, flexibility in fulfilling customers‘ needs, quality control
     
  • K8: Customer Equity: The value of the customer to the company

For the European Service Value Awards, in principle the management of the company and its customers are interviewed about the derivations of the K dimensions. The management and the customer interviews have a „mirrored“ structure. This interview structure allows for a scientifically validated comparison of internal and external perception from a strategic point of view.

The award for the company does not depend on the competitive environment but is geared towards a scientifically validated reference value for the value model, the ESVA result.

The ESVA result is calculated from the evaluations of the customer and management interviews. The basis is the Customer Value, which is determined from the 7K dimensions. Customer Equity is added as an eighth K dimension.

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