Add Facts

STEP 2 - ADD FACTS

To arrive at the Value of Actions, it is necessary to include such facts as costs, revenue, and often also volumes in the analyses, and to the extent possible and relevant split them on stakeholder segments. You need to determine which stakeholder segments are the most important for the success of the organization, otherwise it is impossible to find the best actions and to figure out how to influence exactly these Target Segments and not to waste time, efforts, and costs on actions with little or no impact on the success of the organization.

The facts needed for the analyses are generally available within the organization but probably not used previously when evaluating the Value of Actions as the methodology and tools needed to estimate the Value of Actions still are unique for ValueMetrix.

It may be necessary to carefully discuss these needs with the sales, marketing and financial managements to fully explore the possibilities to extract the most relevant and reliable information to use when estimating the Value of Actions.

Find out which facts are available

Thus, to draw conclusions about the Value of Actions, the input from internal databases about actual volumes and margins on stakeholder level is key for the cost/benefit analyses...

The Value Simulator illustrates how to apply the strength of the Behavior Drivers and the extracted facts to estimate the financial Value of Actions

The Value Simulator is found only in VMx Designer. It is intended as a help when evaluating the financial value of a specific action where the costs of the action including the marketing costs are known and there are hypotheses committed by the Sales & Marketing Management regarding to what extent the actions are likely to impact on the survey scores of the stakeholder category being analyzed. To this end, the Value Simulator loads the appropriate data directly from the cause-and-effect analyses and indicates what to add where to get the likely value of the action being evaluated

Help Drawing Conclusions

Arriving at the financial Value of Actions is not only a matter of mathematical calculations. Often it is wise to discuss alternative actions and not be overly optimistic about how quickly performance improvement actions will be observed by people in the target segments and how much it will cost to make them aware of the improvements