TABLE OF CONTENTS The role of value creation in business has grown as the idea has taken hold that successful customer relationship management (CRM) is based on the company and the customer exchanging value rather than money, goods and services. Companies now pay more attention to value and how to create, convey and exploit it better.
Managers and researchers agree that value plays a key role in building and sustaining vital customer relationships, and are increasingly interested in learning how to balance the value organizations give to and receive from customers.
As we outlined in Chapter 2, the value creation process consists of three key elements: determining what value the company can provide to its customers (the value customer receives ); determining the value the organization gets from its customers (the value organization receives ); and, by successfully managing this value exchange, maximizing the lifetime value of desirable customer segments.
To many companies, customer value means:
How much money can we extract from customers?
How can we sell them more of the existing products and services they are buying?
How can we cross-sell them new products and services?
But in today s competitive arena, where a growing number of businesses vie for a greater share of a finite customer pool, organizations also have to consider customer value in terms of customer benefit, i.e.:
How can we create and deliver value to our customers?
How can we ensure the customer proposition is relevant and attractive?
How can we ensure the customer experience is consistently positive? The...
