Customer Value, Value Chain And Mass Customization Essay

1351 Words Nov 21st, 2016 6 Pages
Customer Lifetime Value, Value Chain & Mass Customization In today’s economy it is crucial that companies provide customers with not only quality products by more importantly high quality customer service. Organizations are realizing the that customers are valuable resources that require more than just quality products but strategies to deliver value to customers.
Question 1: CRM & CLV Not all customers have the same value to the organization. What does this mean in terms of managing CRM? How is this related to the concept of Customer Lifetime Value? To begin with, customers and organizations perceive value in different ways and since not all customers are the same they perceived value in different ways. Customers perceive value to mean receiving quality products at a low price, while some perceive value as receiving quality products regardless of the price. Generally speaking, a customers’ value is always determined by the customer on the basis of their experiences in both use of the product and service of the organization. (Smith, 2014) Organizations on the other hand perceive value, mainly customer value, as the role customers play in the overall success of the organization. One of the main reasons, customers are the main source of competitive advantage and revenue generator. (Woodruff, 1997) Additionally, customer value is based on the level of involvement a customer makes in the decision process. Specifically, how personally important or interested…

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