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What is Customer Value Management?
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Customer Value Management provides organisations with quantifiable, measurable actions that take the 'gut feel' out of developing relationships and delivering increased satisfaction.
It will enable a business to distinguish between its truly valuable and profitable customers and feed this back into the business strategy.
Not all customers are valuable to a business; some may be too expensive to acquire or to service. They may buy little and infrequently or pay late or default. They may make extraordinary demands on customer service and sales resources or switch and defect to the competition. Even those customers that buy frequently and in high volumes are not always valuable to the business.
Customer Value Management allows an organisation to tailor its products and services in line with how much value an individual brings to the business in order to streamline processes and optimise profitability.
Focus2020 define Customer Value Management as:
"Customer Value Management attributes a value score to individual customer segments and markets that help organisations isolate and fine-tune priorities for the business in terms of products and services."
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