What is Customer Value Management?
Customer Value Management (CVM)
CVM helps corporations develop tailored products and services
to their customers, in order to maximize profits on an
individual customer level
Goal
The goal of CVM is to move towards mass customized offers and
price discrimination based on:
- Willingness to pay (both consumer and corporate)
- Current customer value and usage profiles
- Churn and migration risks
CVM enables companies to manage their firm value in the face of
rapidly decreasing prices and potentially slower acquisition
growth
Specifically, CVM generates or preserves value through:
- Usage stimulation through micro-targeted offers
- Subscription plan and feature migration management through
improved understanding of re-price potential and proactive
offer design
- Churn prevention through improved predictive modeling
and targeted retention strategy
- Improved acquisition strategies which consider existing
base impact
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