Customer value maximization

Customer value maximization (CVM) is a real-time service model that, proponents say, goes beyond basic customer relationship management (CRM) capabilities, identifying and capturing maximum potential from prospects and existing customers.[1]


The CVM framework evaluates current methods and effectiveness, makes changes where required, and sets up a measurement system that helps in evaluating effectiveness. The CVM framework operates as a continuous process in a closed loop.[2]

Marketing scenario

Today customers own the on and off switches to all media/mediums, are more knowledgeable about various products and services they are being marketed to and have very limited attention spans owing to existing clutter. The remote, so to speak, is now unmistakably in the customers’ hands. Most marketers have realized that traditional methods of marketing simply don’t work in this new milieu. They are today actively seeking, investing and mastering newer methods and tools that go beyond making their brands merely visible to ones that allow better consumer understanding, precise targeting, customized offering and above all that which engage and let them have a two-way conversation with their customers. For the progressive marketer, the real challenge begins from this stage.[3]

Marketing challenges

Marketing challenges can be predominantly dissected into 4 categories:

  • Lifecycle challengesinclude driving usage of a product/service, new client acquisition, enabling cross-sell, up-sell, client retention, activation, usage, preventing churn etc.[4]
  • Segment-based challengesCompanies have the need to reach out to each customer in a different way suiting their needs and this is all the more the case when the company has multiple products/product variants. They need to reach out in a focused manner to independent segments that require varying strategies.[5]
  • Channel-based challengesMost companies adopt a multi-channel strategy in order to take their products or services to their customers. Each channel — be it a store, online, mobile etc. needs to be tackled in a different way to ensure maximization of results. In addition to this channel, cannibalization should also not happen.[6]
  • Function-based challengesWhen companies invest in marketing programs they look for methods that help them evaluate and track how it works and to measure ROI. Systems to manage their programs, maximize results and optimize spends are all that companies keep looking for.[7]


  1. ^Superior customer value/ Buch. CRC. 2012. ISBN 9781439861288. OCLC 799019107.
  2. ^, Weinstein,; Art., Weinstein, (2004). Superior customer value in the new economy concepts and cases. CRC Press. ISBN 0203501497. OCLC 300310255.
  3. ^“Financial Marketers Not Ready For The Future”. The Financial Brand. 2017-04-24. Retrieved 2017-05-16.
  4. ^“Exploit the Product Life Cycle”. Harvard Business Review. Retrieved 2017-05-16.
  5. ^“Market Segmentation in B2B Markets | B2B Segmentation”. B2B International. Retrieved 2017-05-16.
  6. ^Kolowich, Lindsay. “7 of the Top Marketing Challenges Marketers Face Today [New Data]”. Retrieved 2017-05-16.
  7. ^“7 Big Problems in the Marketing Industry”. Retrieved 2017-05-16.
  8. ^Anna, Fiorentino (December 2010). “Driving Intelligent Growth with Customer Value Maximization”. Archived from the original on 19 February 2015.

Ofer Abarbanel online library

Ofer Abarbanel online library

Ofer Abarbanel online library