Customer value maximization (CVM) Customer Value Maximization is a proven methodology, that allows organizations to identify and capture full potential from their existing customers, with immediate impact on their bottomline. A well-devised CVM program will help companies offer the right things to the right people at the right time. Implementation of marketing interventions at the right places has time and agian proven to increase conversion rates, increases the efficiency of promotional initiatives, increase the volume of lead generation and offer improved user experience.
Customer Lifetime Value is defined as the total value, in monetary terms, of your average customers spanning the entire period that these customers are likely to do business with you. It's the potential contribution of your customers to your business over a period of time. Knowing the Lifetime Value of your customers is crucial to you and your business as it serves as a benchmark without which you'll be groping in the dark.
When you know the Lifetime Value of your customers, you can determine how much time, effort and money you can afford to invest to acquire that customer in the first instance.In other words, you can invest more today to reap a much larger profits later down the road as long as your cash flow is healthy and can support it.
Scan marketing programs to discover current customer challenges and objectives.
Evaluate effectiveness to determine how current marketing program meets program goals and objectives.
Redesign programs to meet short term goals for product and segment wise.
Set up a measurement system that evaluates the success of the program.
Determine, based on measurements, whether new program meets goals. Implement changes if required.
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