Academic journal article South Asian Journal of Management

Total Customer Value Management: Transforming Business Thinking

Academic journal article South Asian Journal of Management

Total Customer Value Management: Transforming Business Thinking

Article excerpt

Total Customer Value Management: Transforming Business Thinking By Gautam Mahajan Response Books, New Delhi, 2011, Pages: 326, Price: ?450 ISBN: 978-81-321-0312-7 (PB)

This book titled "Total Customer Value Management" written by Gautam Mahajan discusses various thoughts on the relevance of customer and their attachment with business processes and business cycle. In a nutshell it reflects the interaction between customers and businesses in modern times. Age old strategies of CRM, brand management have now been replaced with CVM, TCVM, CVA, EVA and other relevant business techno terms.

Chapter one discusses CVM where customers are celebrated as chief pioneer or instigators driving the market , the product and the services allied to products. Customer excellence has been regarded as the core theme of transformational process taking place in the organization. Three key aspects as of customers, of employees and owners are to be handled in corresponding actions in business. The company or brand must perform actions and take steps which may probably enhance its image and quality in the eyes of customers, employees, managers. The brand must separate necessary and relevant (truly important) tasks from unnecessary and irrelevant work and follow this procedure in all business processes. Customer value as a result of the action should be more than what existed before the task had been undertaken.

He also enlists different tasks into categories such as CVA, BVA , EVA, and NVA. CVA deals with customer expectation where as BVA deals with business requirements. EVA is related with employee requirements and NVA includes those tasks which are neither related with business nor with customers. According to Baldrige criteria, business excellence can be achieved through visionary leadership, organization and personal learning, giving value to employees and partners, taking social responsibility, managing innovation and focusing on results and the future possible scenes. Customer feedback can be maximized by measuring customer satisfaction complaints and communicating them to the employees. Further action planning also needs to be prepared to decide future possible steps to correct related issues. An action team should be prepared for carrying out the plans in an effective manner.

These plans and actions should be properly communicated to the intended customers and the society. Customer loyalty has been defined in terms of loyal customers giving wallet retention to the company. It also indicates the client revenues for the current year in relation with previous years. Loyal customers have a tendency to accept company's product even during bad times in the market. They also perceive company's as partners with a virtual life time contract. It must be remembered that a company or brand requires customers and customers require quality product at competitive prices and not a company or brand.

Customers often require to be intimated about newly developed & innovated products and at the same time, new experiences around those products. Customer bill of price includes these transformations of information through sales, marketing, service centers, call centres etc.

The COO performs the job of CVA analysis during product introductions. They also try to make sure that internal processes work in sync with customer's happiness and values achieved thereof. …

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