Customer value maximization

Published on Author Suchen

Customer value maximization ( CVM ) is a real-time service model, which is defined above, which is beyond basic customer relationship management (CRM) capabilities, identifying and capturing maximum potential from prospects and existing customers. [1] Proponents claim that a well-devised CVM program helps companies offer the right things to the right people at the right time. The CVM framework uses creative, technology, media and process along with robust measurement systems to help marketers maximize returns from their marketing investments. quote needed ]

Customer-centricity

  • Customer interactions with brands – Digital, Mobile, and Social-Internet.
  • Hyper competition and multiplicity of messages have severely
  • Analytics and technology can be applied to address consumer behavior challenges
  • Marketing is forced to
  • Lack of human interaction with customers leads to inability to “close the sale”

These factors have made it imperative for marketing organizations to find new mechanisms to generate value from each customer interaction. quote needed ]

Customer value maximization shifts focus on managing or marketing campaigns to manage the profitability of individual customers over the life of the relationship. While CVM can lead to better product offerings and more targeted campaigns, the customer value manager has asked questions compared to a traditional marketing manager . Instead of asking who will answer to a 10% off promotion, to a customer value manager who does not know who the customer is and what they can offer to increase the customer’s lifetime value?

The CVM framework evaluates current methods and effectiveness, and makes changes where required. The CVM framework operates as a continuous process in a closed loop. [2]

Marketing scenario

Today, we are more and more interested in all media / mediums, we are more knowledgeable about various products and services than we are. The remote, so to speak, is now unmistakably in the customers’ hands. Most marketers have realized that traditional methods of marketing simply do not work in this new medium. They are now actively seeking, investing and mastering newer methods and tools that make it easier for them to understand and understand each other. their customers. For the progressive marketer, the real challenge begins from this stage. [3]

Marketing challenges

Marketing challenges can be predominantly dissected into 4 categories:

  • Lifecycle challenges include driving the use of a product / service, new customer acquisition, enabling cross-sell, up-sell, customer retention, activation, usage, preventing churn etc. [4]
  • Segment-based challenges Companies have different types of product requirements. They need to reach out in an independent manner that requires varying strategies. [5]
  • Channel-based challenges Most companies adopt a multi-channel strategy. Each channel is a store, online, mobile etc. needs to be tackled in a different way to ensure maximization of results. In addition to this channel, cannibalization should also not happen. [6]
  • Function-based challenges When companies invest in marketing programs they look for methods that help them assess and track how it works and to measure ROI . Systems to manage their programs, maximize results and optimize. [7]

What organizations need their marketing programs

The expected outcome of marketing investments may be

  • Drive acquisition
  • Influence conversion
  • Produce revenue – directly or indirectly
  • Cross-sell , Up-sell
  • Reduce Churn

The actual outcomes, however, happen to be

  • Traffic to website
  • Conversations on social media
  • Views of online videos
  • Calls to 1800 numbers
  • Walk-ins to physical outlets

Benefits

  • Takes customer view of all marketing programs and integrates them to deliver value.
  • Brings accountability to marketing programs.
  • Helps map marketing goals to business goals.
  • Helps identify the right marketing channel and tool mix.
  • Small interventions in marketing programs to create significant change.

Features

  • X-ray marketing programs.
  • Evaluate their effectiveness.
  • Re-architects according to goals.
  • Augment Measurement System.
  • Grow value [8]

When this becomes critical

  • Whenever the marketing team needs to demonstrate the accountability of spends or measurability of returns. quote needed ]
  • Increase yield from current customer-facing programs, channels or product lines. quote needed ]
  • Align and optimize customer engagement on digital , 1-1 and social media to overarching brand and business objectives. quote needed ]

Versus CRM

Customer relationship management facilitates deepening of relationships with technical data. Customer value maximization, on the other hand, is a multi-disciplinary approach. Customer value maximization may or may not require marketing relationship . quote needed ]

See also

  • Brand commitment
  • business case
  • Business model
  • Cross-selling
  • Customer centricity
  • Customer data integration
  • Customer Data Platform
  • Customer experience
  • Customer experience transformation
  • Customer intelligence
  • Customer relationship management (CRM)
  • Guided selling
  • Loyalty marketing
  • Online lead generation
  • Real-time marketing
  • Relationship marketing
  • Sales force management system
  • Technical Selling
  • Strategic management
  • Supplier relationship management
  • Automation support
  • Trigger-based marketing
  • Up-selling
  • Value added selling

References

  1. Jump up^ Superior customer value / Buch . CRC. 2012. ISBN  9781439861288 . OCLC  799019107 .
  2. Jump up^ Art., Weinstein ,; Art., Weinstein, (2004). Superior customer value in the new economy concepts and cases . CRC Press. ISBN  0203501497 . OCLC  300310255 .
  3. Jump up^ “Financial Marketers Not Ready For The Future” . The Financial Brand . 2017-04-24 . Retrieved 2017-05-16 .
  4. Jump up^ “Exploit the Product Life Cycle” . Harvard Business Review . Retrieved 2017-05-16 .
  5. Jump up^ “Market Segmentation in B2B Markets | B2B Segmentation” . B2B International . Retrieved 2017-05-16 .
  6. Jump up^ Kolowich, Lindsay. “7 of the Top Marketing Challenges Today Face Marketers [New Data]” . Retrieved 2017-05-16 .
  7. Jump up^ “7 Big Problems in the Marketing Industry” . www.ama.org . Retrieved 2017-05-16 .
  8. Jump up^ Anna, Fiorentino (December 2010). “Driving Intelligent Growth with Customer Value Maximization” .