Customer Value Management Best Practice
2016.10.18   |   28 pages   |   Operations and Management

Author:
Nicola Warren


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Many operators have continued to focus on market share as a measure of success, forcing them to invest resources in expensive acquisition efforts that result in limited financial gains.

Customer Value Management (CVM) practitioners adopt an alternative perspective: they view the customer base as a long term asset – one which requires investment to secure financial benefits over the course of the customer lifetime.  The discipline promotes the continuous delivery of customer value to ensure retention and loyalty to maximise returns to the business in the long term.

This report provides an overview of CVM best practice in order to inform organisations that are considering the implementation of such programs.

 

Companies: Telia Company, Deutsche Telekom, Tesco, giffgaff, Orange, Amazon, First Direct,

Countries: US, UK, France, Sweden, Germany

Keywords: Profitability, Customer Feedback, Customer-centric, CRM, Big Data, Yield, Customer Relationship Management, NPS, Loyalty, Customer Satisfaction, Customer Lifetime Value, Pain Points, CEM, Value Creation, CVM, Personalisation, Customer Value Management, Differentiation, Customer Experience Management, Customer Value, Net Promoter Score, Retention,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

3

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

4

3

Elements of Successful CVM

5

3.1

Introduction

5

3.2

Management Commitment

5

3.3

Big Data Capabilities

6

3.4

Understanding Customer Needs and Segmentation

6

3.5

Competitor Analysis

7

3.6

Calculating Total Customer Value

7

3.7

Investment Shift from Acquisition to Retention

9

3.8

A Single, 360 Degree View of the Customer

10

3.9

Increasing Emphasis on CRM and CEM

10

3.10

Measure Impact on Value

11

4

CVM Outside Telecommunications

12

4.1

Introduction

12

4.2

Tesco, UK

12

4.3

Amazon

13

4.4

First Direct, UK

15

5

CVM at MNOs

18

5.1

Introduction

18

5.2

Orange, France

18

5.3

Telia Company, Sweden

19

5.4

giffgaff, UK

22

5.5

Deutsche Telekom

24

6

Key Findings

26

7

Recommendations

28

 

Appendix – Feedback Questions

29

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