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HANDBOOK OF CRM: Achieving Excellence in Customer Management Part 3

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Chapter 3. The value creation process. The strategy framework for CRM Strategy development process: Value creation process: Value customer receives • Value proposition • Value assessment Customer segment lifetime value analysis Multi-channel integration process | Chapter 3 The value creation process The strategy framework for CRM Strategy development process Performance assessment process Business strategy Business vision Industry and competitive characteristics Sales force Value creation process Multi-channel integration process Direct marketing Electronic commerce Mobile commerce Value customer receives Value proposition Value assessment Outlets Telephony Shareholder results Employee value Customer value Shareholder value Cost reduction Customer strategy Customer choice and customer characteristics Segment granularity Value organization receives Acquisition economics Retention economics Performance monitoring Standards Satisfaction measurement Results and KPIs Data repository IT systems Analysis tools Front-office applications Back-office applications Information management process Û 0 Û 0 Û 0 Creating customer value is increasingly seen as a key source of competitive advantage. Yet despite growing attention to this aspect of strategic development there is remarkably little by way of agreement among managers and commentators on what constitutes customer value . Further companies typically do not specify in sufficient detail what value they seek to deliver to clearly identified The value creation process 103 customer segments and micro-segments and how they propose to deliver this value. The value creation process consists of three key elements determining what value the company can provide its customers with the value customer receives determining the value the organization receives from its customers the value organization receives and by successfully managing this value exchange maximizing the lifetime value of desirable customer segments. In summary the process addresses two key questions 1. How can we create and deliver value to our customers 2. How should we maximize the lifetime value of the customers that we want However the emphasis in many companies is on this latter element of value. To these companies customer