Magazine article Marketing

Opinion: Marketing Society - Customer Value Is Key

Magazine article Marketing

Opinion: Marketing Society - Customer Value Is Key

Article excerpt

Board directors the world over have developed abbreviation fatigue.

ERP, CRM, CCM, ETL and many others have conspired to turn us off, especially since the recent acceleration of invention has turned a sprinkling into a downpour.

But one new idea, customer value management, or CVM, actually marks a fundamental step forward for marketers.

Rather than being a subset of customer relationship management, CVM goes a step further. It also brings the interests of the finance director, the managing director and the marketing director into an alignment that overcomes the traditional friction between these functions.

CVM monitors and measures profit per customer and aims to improve this metric over time. It is important to the managing and finance directors that the marketing director is using this performance measure because it provides an insight not only into the amount of earnings being produced but also the efficiency with which they are generated.

Efficient profit generation is fundamental to the level of shareholder value a company creates. It is equally important that a company can continue to develop markets. Sustainable growth is crucial to most investors, who are not volatile day traders but institutional players looking to build stable investments for pension funds. …

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