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Customer value maximization (CVM) is a real-time service model that, proponents say, goes beyond basic customer relationship management (CRM) capabilities, identifying and capturing maximum potential from prospective and existing customers.
Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time ...
Customer value is defined as value = benefits minus price. Thus, customer benefits are quantified in a CVM; product features and capabilities are translated into dollars. Customer value models are different from customer lifetime value models, which seek to quantify the value of a customer to its suppliers. [citation needed]
Customer satisfaction is a term frequently used in marketing to evaluate customer experience. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products ...
The concept of customer relationship management started in the early 1970s, when customer satisfaction was evaluated using annual surveys or by front-line asking. [6] At that time, businesses had to rely on standalone mainframe systems to automate sales, but the extent of technology allowed them to categorize customers in spreadsheets and lists.
Customer Value Management was started by Ray Kordupleski in the 1980s and discussed in his book, Mastering Customer Value Management. A customer value proposition is a business or marketing statement that describes why a customer should buy a product or use a service. It is specifically targeted towards potential customers rather than other ...
the customer no longer has a need for the company's products or services, more suitable alternative providers become available, the relationship strength has weakened, the company handles a critical episode poorly, unexplainable change of price of the service provided. The final link in the model is the effect of customer loyalty on profitability.
Without trust, customers are unlikely to move forward towards the Desire and Action stages of the process. Purchase is not the end stage in this model, as this is not the goal of the client; therefore, the final two stages are the Satisfaction of previously identified and agreed needs and the Evaluation by the customer about the whole process.