Evaluating a Transport Customer Value Proposition (CVP)

The primary aim of this project was to evaluate the needs and expectations of the Department of Transport and Main Roads’ (TMR) customers and design an updated customer value proposition (CVP).

Why is this important?

Customer value propositions and the process of co-creating value has been highlighted in previous research as highly important to effectively communicate value to various stakeholder groups – especially in the context of service design and distribution (Vargo and Lusch, 2008; Frow & Payne, 2011). TMR have recognised this in their approach and subsequently spent considerable time establishing a customer value proposition (CVP) framework in 2014. However, as time has passed and attitudes have changed, it is now important for TMR’s CVP to be re-evaluated and updated to align with current customer and staff needs and expectations, and with current best practice in customer value. The re-evaluation of the CVP will assist TMR is supporting the Advancing Queensland priority of Responsive Government and guide the provision of an aligned customer and staff experience.

What we did

The research approach followed the service design framework, which is a well-validated and successful behaviour change approach that is used to develop new solutions to old problems and provide holistic and multifaceted answers to research questions. The project was divided into three key phases: scoping, desktop review and primary research, and co-design of the updated CVP.

Phase 1 – Scoping:

Initially, the issue and context was scoped, to fully identify the problem and interest areas to be investigated in later phases.

Phase 2 – Desktop Review and Primary Research:

A desktop review was conducted to identify current knowledge of CVPs and performance measures of CVPs, as well as draw together relevant best practice examples to inform the design of the primary research instruments. Following this, an anonymous online survey of customers and interviews with TMR key informants were conducted. The surveys were analysed using multivariate behavioural economics-driven techniques and multidimensional scaling modellings, and the qualitative work was analysed using thematic analysis techniques.

Phase 3 – Co-Design of the Updated CVP:

Two separate co-design workshops – one set with customers and one with TMR staff – were conducted. The primary aims of the customer workshops were to identify the key elements of the desktop review findings and customer survey findings that resonate with customers and update the current CVP to align with customer needs and expectations post COVID-19. The aims of the second workshop were generate performance measures and a performance and measurement framework of CVP that reflects staff business needs, and create an implementation and engagement roadmap for TMR.

Project Impact

The new customer value proposition developed with the Department of Transport and Main Roads has been adopted by the department.  One example of the impact of the research project is evidenced in the customer centric road project for the Bruce Highway.  This project has been presented at the PIARC conference in 2023 with the poster and abstract available.

“The research that Rebekah and her team at QUT BEST did to test the TMR Customer Value Proposition was translated into a Customer Value Chain (CVC).  The CVC is a practical and systematic process for understanding what customers value in their end-to-end experience with TMR.  TMR has shown how the CVC can be used to answer questions such as “How do you build a customer centric road?” by using the CVC in research to understand customer and stakeholder needs and expectations for the Bruce Highway.  The insights provided by the research have assisted the Bruce Highway Trust Advisory Council (BHTAC) to draft a 15-year Vision and Action Plans for the Bruce Highway, as well as the Safer Bruce Action Plan. Moreover, the metrics of customer value created through the research were integrated into the multi-criteria assessment tool that will inform the prioritisation of Bruce Highway upgrades alongside the technical data gathered through the other elements of the BHTAC program of work. BHTAC members said that the customer research undertaken by TMR had influenced decision-making throughout the process, and that the active participation of industry and community combined collaboration with a robust methodology.”

– Dr. Jean Sandall | Director, Customer Research and Insights | Customer Experience Branch | Policy, Planning and Investment Division | Department of Transport and Main Roads

For more information about this project, please contact: best@qut.edu.au