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Customer value management will help you accurately determine what drives value for customers,
measure your performance relative to the competition, align efforts, focus scarce resources and create
your sustainable competitive advantage.

The concept of customer value management is really simple. It's about:

•asking customers in your target market what they're looking for when they do business with
•determining how customers in your target market rate the value you provide relative to the
value provided by your competitors
•deciding what changes on your part will have the greatest positive impact on customers'
perception of the relative value of your offering
•aligning people and processes in a common focus to deliver value
•providing a consistent flow of data and information to keep them aligned
•winning with customers, with employees and with shareholders
Every company in today's business environment is stressing customer focus. However, what's lacking
in most companies are useful and practical ways to capture customer needs, measure how well you're
satisfying those needs, and build actionable plans to improve your company's bottom line—that's what
customer value management will do for your company!

Customer Value Management (CVM) improves customer profitability by understanding the value of
each individual customer and implementing marketing strategies, retention campaigns, and loyalty
programs that maximize that value. Diamond generates value by integrating disparate data, identifying
opportunities for profitability improvement based on customer-level analysis, and using the results to
optimize marketing campaigns and enable real-time decision making.

Focus Areas:
•Internal/External CVM Assessments
•Competitive Analysis
•CVM Technology Support Studies
•Strategic CVM Business Plans
•Organizational Alignment/ Staffing Requirements
•Customer Relationship Management System
•Implementation Plans/Staff Training
•CVM Performance Tracking System

Goal of customer value management

The goal of customer value management (CVM) is to deliver optimal value to customers -- to align
business metrics, improvement programs, capabilities, processes, organization and infrastructure with
customer-defined value. In other words, to create the kind of business that can deliver to customers
exactly what they want.
Drivers behind CVM

One of the biggest problems facing senior managers today is how to attract customers and attain
growth, often in an environment where products and prices among competitors are moving steadily
closer together. Traditional bases for differentiation, such as product features or cost, are becoming less
tangible. So senior management is forced to look for new ways to be attractive to a target market. Many
companies now use the CVM approach to identify the "value" they can deliver, not only with products
but also through processes and services. These companies engineer their business capabilities to deliver
"ideal" customer-defined value at each customer interaction.
Because of the fast introduction of new technologies and resultant rapid changes in customers'
perceived "needs" and "values", companies are institutionalizing this approach so they can
continuously monitor and maintain alignment between their customers' vision of "ideal value delivery"
and the capabilities of the business to deliver that value. In this way, CVM offers a new basis for
competition and growth.

The CVM Economic Model:

Customer Value Management is an approach that measures and optimizes the value of your customers
by deploying CRM programs that are better targeted and better adapted to the expectations of your
customers. And, most importantly, your CRM programs should conform to the economic model for the
profitability of your company.
CVM means understanding that for each CRM activity, it is possible to envision the deployment of
another activity that will generate, with the same quality of service, a higher customer value. Under the
Customer Value Management approach, we associate an economic model with each of our CRM
programs in order to:

•Identify the marketing levers for creating value and reducing costs.
•optimize the cost equation in the development and deployment of activities.
•permanently measures the results of program and their ongoing evolution.
•systematize the deployment of CRM programs and continuously maximize the effectiveness.

With each contact, whether at the acquisition, care or value growth phases, additional value can be

Directly by the sale of a product or service during the contact.

Indirectly by reinforcing one of the components of customer value: length of lifetime (longevity),
frequency and level of purchases (intensity), receptivity to the other offers (potential), guarantee of
payment (reliability)

Benefits of Customer Value Management :

1)Know and understand your customers needs.
2)Increase customer loyalty.
3)Assess product and service lines to align with client needs.
4)Appropriately define your value proposition relative to competition.
5)Leverage customer value.
6)Foster employee development .