Customer Loyalty -Values drive value
-the crm hierarchy
Classification of customers as per loyalty& satisfaction Mercenaries (High satisfaction Low Loyalty) -On a look-out for better opportunity Apostles (high satisfaction high loyalty) -More valuable than any promotion Defectors(Low satisfaction Low loyalty) -Spread bad word about organization. Move on without informing. Hostages (Low
satisfaction high loyalty) -Dissatisfied but can’t leave due to exit barriers
Values derived by the customer
Types of customer value 1.Choice based value 2.Employee Based Value 3. Information value 4. Association value 5. Supplier relationship value 6. Customer unique value 7. Experience value 8. Product-for-price value 9. Access/ convenience value
Customer Lifetime Value Understanding profitability per customer CLTV=Total revenues-(fixed cost + variable costs) Enhancing segmentation….. Identify more profitable customers Find more customers that match the profile of profitable customers Calculate the product combinations which are more profitable.
Customer Value Management Components of CVM Needs and value based segmentation (moving from ‘opinion based to data based decisions) Value proposition development Product and service delivery Integrated channel strategy( bringing in accountability) Customer service Expanding customer relations Moving customers to new products