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Driving Customer Value in a Fragmented World

Most organizations today struggle to design and deliver customer interactions that drive incremental value. The major challenges they face are related to:

1. The lack of enterprise-wide definition and understanding of who is a “good” vs. “bad” customer and what is the relative relationship or ranking across customers.
2. The existence of multiple constructs of who that customer is and the absence of a clear and consistent behavioral and attitudinal picture.
3. The constrains created by multiple measurement frameworks that frequently do not measure incrementality, and as a result, cannot drive optimum decision making.

Establishing customer value, segmentation and incremental measurement frameworks creates the operational protocols that enable companies to construct a common language across the enterprise to break down silos and achieve fully integrated, customer-centric marketing

Customer value represents one of the first and most important components of customer centricity. You need to first understand who your valued customers are. Only then can you create and align a value proposition and design a value delivery ecosystem to distribute it across your customer interaction points.

Generally speaking, there are two ways to evaluate a customer’s worth to a company – life-to-date value and expected future value. To go one step further, we can also consider monetary and non-monetary value. Typically, monetary value is rather straightforward, as it is based on actual purchase transactions for life-to-date and predicted estimates based on prior behavior. Non-monetary value can be just as important, if not more so, as this helps us measure customer engagement, referral value and the accumulated actionable goodwill of our brand.

Logical Components of Value Equation

Logical Components of Value Equation


The reward of effective customer valuation is having the ability to differentiate marketing, sales, and service experiences accordingly, to ideally grow the current and future potential value of each customer to the optimal level. Furthermore, it allows for valuable input across the organization, from product design (who should we listen to when we consider new futures or product chances?) to the way we value the feedback we receive across social media. The implications of a robust customer value can easily extend beyond marketing and service and position marketing in the front of the organization when it comes to customer centricity initiatives.

Outcome Chart

Contact us to learn more about how Merkle® can help you define, assess and operationalize your CRM strategy by defining value for your organization, creating a deep understanding of your customers and measuring the incremental impact of your marketing activities in maximizing customer value.

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