CUSTOMER SERVICE

MANAGEMENT
LORITO QUIMSON
 OPTIMIZING THE VALUE OF THE FIRM’S
CUSTOMER BASED
5 STEPS ON CREATING AND MANGING CUSTOMER VALUE:

1. Understand toward delivering value to customer

2. Commit toward delivering value to customers
3. Create customer value
4. Obtain customer feedback and analyze it.
5. Measure & improve customer value
UNDERSTANDING THE CUSTOMER VALUE
• The customer value (CV) models aims to create value for customer
and suppliers.

Customer Value
- Is generated to superior products and services that provide benefit,
which is recognized through the payment of an agreed upon price.
 2 BASIC GOALS
• To deliver superior customer value to identify customer segments.
• To get equitable return on offered value.
 CVM FRAMEWORKS
• CUSTOMER ANALYSIS: this focuses on assessing customer segment
that the company serves. It involves identifying target customers,
understand their needs and showing how the products and service
can satisfy their needs.
• CUSTOMER ACQUISITION: involves methods & strategies for dealing
with these inquiries. Can be considered as a bridge between
advertising and CRM.
• CUSTOMER RETENTION: it is well-known that the cost of acquiring
customer is five times that of retaining an existing customer benefits
of word-of-mouth promotion that loyal customer bring.
• CUSTOMER EXPANSION: selling more products or services to existing
customers.

Upgrading customers to higher levels of service.

Increasing usage of products service by customers.
launching new products & service.

• CUSTOMER LIFETIME VALUE: represents how much a customer is worth in

terms of monetary value. How much money should be spent on acquiring &
retaining that customer by the company more resting department.
 Successful of CVM Implementation
• Deciding factors to lead to successful application of CVM practice.
• Understanding advantages of CVM Implementation
• Role of analysis, quality of data & work culture
• Skill gaps to be covered in customer intelligence.
• Working toward cooperation between customers & marketers.
• Amount efforts to put into CVM Implementation.
• Negative effects excessive focus on customer data

Example: Satisfaction & loyalty

Maruti Suzaki has many satisfiedand loyal customers in India. Indicated by the fact that it is
the leading brand with close to soon market share in the passenger car segment.
• Retention example: Nexa was launched to provide a better experience
to customers opting for premium vehicle, this helps the customer
retain.

• CUSTOMER VALUE MANAGEMENT SOLUTION

- Drives the profitability of your customer base and monetizes your
data through relevant interaction with the customer.
 CREATING CUSTOMER VALUE
• Basic formula: ve= B/C
Customer value is benefits divided by costs.

Benefits- are what the customers perceive as “ gain” for them and the
value they award to it is strangely related to the way they experience
the benefits in their daily lives.
Costs- are what the customers perceive as “loss” for them and the
value they awarded to it is strangely related to what they loose and
how valuable that is to them.
 Cost and Benefits
• Are not any expressed in terms of money, but also in time, attention,
reputation, privacy, status, comfort, ease of mind, excitement,
entertainment & efforts.

• The essence of creating Value is: Trading something that is low costs
to you for something that is of high value to your customer.