Customer value maximization

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Customer value maximization (CVM) is a real-time service model that, proponents say, goes beyond basic customer relationship management (CRM) capabilities, identifying and capturing maximum potential from prospects and existing customers.[1]

Customer-centricity[]

The CVM framework evaluates current methods and effectiveness, makes changes where required, and sets up a measurement system that helps in evaluating effectiveness. The CVM framework operates as a continuous process in a closed loop.[2]

The CVM framework is closely related to the idea of customer-lifetime-value.

One of the most efficient and basic strategies to maximize the value that each customer generates is to split customers into defined segments, a process called client segmentation.

Marketing challenges[]

Marketing challenges can be predominantly dissected into four categories:

  • Lifecycle challenges include driving usage of a product/service, new client acquisition, enabling cross-sell, up-sell, client retention, activation, usage, preventing churn etc.[3]
  • Segment-based challenges Companies have the need to reach out to each customer in a different way suiting their needs and this is all the more the case when the company has multiple products/product variants. They need to reach out in a focused manner to independent segments that require varying strategies.[4]
  • Channel-based challenges Most companies adopt a multi-channel strategy in order to take their products or services to their customers. Each channel — be it a store, online, mobile etc. needs to be tackled in a different way to ensure maximization of results. The increasing number of touch-points that each customer faces, has led to marketers to grow increasingly reliant on machine-learning and AI models when calculating CVM models.[5] It's also important to balance each channel cannibalization would not occur either.[6]
  • Function-based challenges When companies invest in marketing programs they look for methods that help them evaluate and track how it works and to measure ROI. Systems to manage their programs, maximize results and optimize spends are all that companies keep looking for.[7]

Features[]

See also[]

References[]

  1. ^ Superior customer value/ Buch. CRC. 2012. ISBN 9781439861288. OCLC 799019107.
  2. ^ Art., Weinstein; Art., Weinstein (2004). Superior customer value in the new economy concepts and cases. CRC Press. ISBN 0203501497. OCLC 300310255.
  3. ^ "Exploit the Product Life Cycle". Harvard Business Review. Retrieved 2017-05-16.
  4. ^ "Market Segmentation in B2B Markets | B2B Segmentation". B2B International. Retrieved 2017-05-16.
  5. ^ "Four Essential Analyses for a Successful FMCG Brand Online Performance". ciValue. 2020-12-17. Retrieved 2021-03-15.
  6. ^ Kolowich, Lindsay. "7 of the Top Marketing Challenges Marketers Face Today [New Data]". Retrieved 2017-05-16.
  7. ^ "7 Big Problems in the Marketing Industry". www.ama.org. Retrieved 2017-05-16.
  8. ^ Anna, Fiorentino (December 2010). "Driving Intelligent Growth with Customer Value Maximization". Archived from the original on 19 February 2015.


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