Customer value maximization (CVM) is a real-time service model that, proponents say, goes beyond basic
customer relationship management
Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study big data, large amounts of information.
CRM systems data collectio ...
(CRM) capabilities, identifying and capturing maximum potential from prospects and existing customers.
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.
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
Cross-selling is a sales technique involving the selling of an additional product or service to an existing customer. In practice, businesses define cross-selling in many different ways. Elements that might influence the definition might include ...
,
up-sell, client
retention, activation, usage, preventing
churn
Churn may refer to:
* Churn drill, large-diameter drilling machine large holes appropriate for holes in the ground
Dairy-product terms
* Butter churn, device for churning butter
* Churning (butter), the process of creating butter out of mil ...
etc.
* 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.
* 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 differently 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. It's also important to balance each channel cannibalization would not occur either.
* 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.
Features
* Grow value
See also
References
Customer relationship management
Brand management
Marketing software
Types of marketing
Retail analytics
Strategic management
Professional studies
Financial technology
Banking technology
Sales
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