Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
Among the nodes that make up a successful 'customer managing network' for an organization, one prominent constituent is 'customer value'.
Ideally speaking, this is defined as the value promised by the vendor to the buyer in return for the monetary amount sacrificed by the latter. Stating it in other manner, the difference between what a customer receives from a product and what he pays is equal to 'customer value'. Greater is the magnitude of this parameter, more drawn and inclined is the customer to have the offering.
This implies that if the provider is able to prove that the 'value being provided to him/her is more than the amount being lost by the customer', customer conversion is more likely to occur.
This is the cause organizations often find their marketers surrounded by such questions and thus begins their quest of digging answers to the queries. No matter how diverse and varied is the source of question, every attempted solution converges towards 'an increase in customer value'. With a constant rise in customer value, it is possible to make substantial additions to the customer base.
Some of the terms in which the concept of customer value is presented are 'customer value added ratio' and 'customer value added'.
A customer value scorecard serves to measure and calculate the movements and steps being undertaken by the management people.
This is the actual scorecard with Customer Value Indicators and performance indicators. The performance indicators include: operational and benefits perspective, increase in % retention, number of techniques used for analysis, drop in customer complaints, brand image and awareness, customer attrition, framework perspective, customer intimacy ratio, quality conformance fraction, customer value increment, streamlining index, factors and considerations/analysis perspective, number of dimensions considered, key buying impactors spanned, number of benchmarks used, voice of the customer ratio, performance evaluation, interactive relationship index, customer assistance level, customer profitability jump, satisfaction to value perceived improvement.