Customers are the backbone of any business. They are the ones who determine the best product among the options offered by competitors in the marketplace. Customers’ choices are based on the value they receive: improving their quality of life, solving a complex problem, saving time or money. That’s why they pick trusted https://nationalcasino.com/en_nz instead of an unknown gambling platform working for a couple of months. Let’s talk about what customer value management in marketing (CVM) is and how to apply this tool to improve business profitability.
What Is CVM Marketing
Customer Value Management is an approach to managing aspects of the customer value journey that begins with the first touch with a product and ends with the last interaction with the company. If a business knows what the value to customers is and can demonstrate that knowledge, it gets attention, loyalty and purchases.
Both B2C and B2B customers are constantly asking questions when they encounter a new product: “Why buy it? Why now? Why from this company and not from a competitor?” If the business doesn’t provide answers, customers may miss that the product offered is right for them and go to someone who explains it more persuasively.
That said, don’t forget that customer values are different from business values. Substituting one content for the other always affects profits – leading to a lack of them or a drop in sales.
That’s why CVM marketing starts with the study of the interests and needs of the audience. Already on this basis, it’s possible to form the values of the audience, contained in the product, to choose the tone of communication and ways to deliver the benefits of a product or service. Thus, customer value management helps to find the intersection between the business and the customer and to provide the customer with the product he needs.
Why It’s Important to Manage Customer Value
What CVM marketing provides:
- CVM allows you to discover important insights about your target audience, which you can then use to attract new customers and retain loyal ones, as well as manage their behavior.
- CVM focuses on customer data, that is, it works within a data-driven approach based on the analysis of statistics, rather than on the intuitive experience of the seller. Based on this data, company experts can find ways to increase the usefulness of the product in the eyes of the end consumer.
- CVM marketing is a powerful business tool. It connects a company’s key performance indicators (KPIs) with the customer by measuring factors that influence consumer behavior and analyzing metrics such as market share, profit and loss, ROI and more.
- CVM helps align business goals with marketing objectives.
- The tool also enables business development based on the key advantages in marketing strategy, relationship marketing, customer database management and sales management.
Also read: Successful customer management to launch the product
What It Takes to Make CVM an Effective Value Management Mechanism
Invest in the most profitable customers. You need to identify a base of “profitable” customers for the company and invest in attracting them.
Individual budget for each client.
Create value for the customer throughout the entire customer journey: not only at the point of sale, but also when managing the order, payment, delivery, or return.
Keep it simple. Create simple business cases that are clear to the business, beneficial to customers, and quick to implement.
Take the best from cutting-edge industries. Industries like retail, hospitality, and tourism have a long history of creating added value, and there are plenty of examples that you can integrate into your processes.