Customer Value Models Accelerate Ongoing Success
Posted by groupfio on March 26th, 2021
While the terms price and value are many times used interchangeably, they are not the same. Recently, we asked the question, “what should you know about your customers?” We shared that hyper-personalization designed by using a combination of historic and real-time data helps you provide better personalized recommendations with higher conversion rates. This provides your customers with added-value and leverages the fundamental ideas of Customer Value Models (CVM).
Understanding value versus price.
Imagine traveling across the country to give a live seminar to a large group of people after spending two months developing your presentation. If your ,000 laptop housed your presentation, and was lost at the airport – how much would it cost to replace?
Who cares, right? You can replace the laptop with a new one, but not the value of having your presentation when you need it most. The event could be canceled, and all the related revenue might be lost. It’s possible that the venue would blacklist your company from having future events at their location. The replacement cost of your laptop has nothing to do with its value in this scenario. Customer Value is defined as Value = Benefits – Price.
Using CVM to accelerate success.
Companies can use CVM in a variety of ways. However, it does not replace predictive and prescriptive analytics nor hyper-personalization. Rather, it supplements these tactics. This is where success acceleration really happens. It’s important to consider that customers have price caps – a limit on total price they are able or willing to pay, despite total value. Here are two ways that businesses are effectively using CVM to accelerate success.
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About the Authorgroupfio
Joined: December 17th, 2019
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