Value in Lean Thinking.

A product is designed in marketing and flows through operations, through to after sales and support.

Business Departments


(The dashed lines indicate the different functions that often exist, sometimes marketing and sales are in the same area. The dotted lines indicate feedback loops that may or may not be in place.)

Now think about how do YOU make a decision to buy or recommend, is it on price or service alone?

Think about this for a minute;

You probably use a mix of;   
  • How easy is it to buy the product or service?
  • What features does it have?
  • How long will it last? (quality)
  • What image does it portray (about me)?
  • What after sales support will I get?
  • What is the returns policy?
  • What is the price?

A mix of outputs from all the departments shown in the diagram.

If you think about these things when purchasing, then so do YOUR customers!

Customer experience and decision to purchase would appear to be a function of ALL of parts of YOUR organisation.


When someone asks your opinion on the last meal you had out, the price will only form part of it;
  • The quality of the ingredients and the cooking may be mentioned,
  • the warmth of the greeting,
  • the speed of service (too fast, too slow, just right),
  • the list of “blackboard” specials they offer,
  • the desserts you couldn't quite fit in,
  • the favourite wine on the wine list.
and yes you may mention the price but in the context of everything else and this combination of product/service features and prices helps you to decide on the value of the experience.

The price may dictate how frequently you purchase, low and high price products can equally provide high or low value.

If you’re still not sure then consider this;

How can Primark happily co-exist on the high streets next to John Lewis, Whistles, Marks & Spencer, and Next?  They all sell clothes, all provide value to their customers but all have different propositions for which different consumers will purchase from, for different reasons, at different times.

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