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RESEARCH , SURVEYS & ANALYSIS

Customer Value Management

Customer value management is managing each customer relationship with the goal of achieving maximum lifetime profit from the entire customer base. Customer value management enables companies to take full advantage of the economics of loyalty by increasing retention, reducing risk, and amortizing acquisition costs over a longer and more profitable period of engagement.

Although customer value management seeks to increase the aggregate value of the customer base, this is accomplished customer by customer. Not every individual customer will be profitable, but each must be managed to maximize overall profit, even when the management consists of identifying which customers have little value to the business, and focusing development and retention efforts elsewhere.

CVM shifts the focus of the enterprise from managing products or marketing campaigns to managing the profitability of each individual customer over the entire life of the relationship.

While CVM can and does lead to better product offerings and more targeted campaigns, a customer value manager will ask different questions than a traditional marketing manager.

Customer value management offers a roadmap to acquiring, developing and retaining your most valuable customers. Taking the journey shown on the map is not free. Managers who wish to reap increased customer value must pay more than lip service to the idea of being customer driven.

They must develop the analytical capability to understand their customers as individuals, and integrate this customer intelligence into their operational systems to enable immediate response to each customer’s changing behavior and value. The reward for making this investment is sustained and increasingly profitable relationships, potentially the most enduring asset in today’s ever-changing business climate. By deepening and lengthening customer relationships, your business can drive increased revenue from its customer base, even as products and sales channels continue to evolve.

We offer complete solutions consisting of Customer Satisfaction Survey, Measuring Customer Satisfaction Index and managing Customer Value Management.