In the customer centric world, the customers are the key pillars in a marketing strategy. They tend to switch over to different brands every minute, especially because they have greater exposure to the competent products. Many companies have now apprehended that conventional marketing tools and processes do not work no more. Ultimately, they seek out for the innovative strategies, which intend to make the customers loyal.
Even though customer value maximization and customer relationship management seems to deal with the customer oriented activities, they are not the same in relevance, scope and application. A progressive marketer has to comprehend about the outcomes of the two different approaches.
While the CRM principles work on a specific strategic framework that help to understand the needs of the customers and to optimize the communications with them, the CVM works beyond CRM attributes and it is a tool that assists in delivering the right things to targeted customers, at the right time. With the creative technology and well designed processes, packed with the dynamic metric systems, the CVM platform works to maximize the loyalty.
Whether a company pursues a CVM or a CRM, it needs a software and system skills for effective implementation. However, a CVM does not stop with using software to organize data rather the framework segments the customers, decides the interactions and it is more precise in the application of strategies.
While the CRM focuses on satisfying and adding value to the existing customer base, the Customer Value Maximization works on both the current customer and the future prospects, through various channels. Apart from satisfaction, a CVM engages the customers in the best way for future promotions.
A CRM focuses on the channels of communications and types of conversations, while the CVM chooses them in accordance with the business objectives.
A CRM works on marketing database resource, while the CVM uses both the internal and external reliable data sources for various analytics, to ensure accurate metrics.
For the application of the CRM strategy, unique CRM software with a complete training for the executives in the company is necessary. On the other hand, a simple and user friendly CVM platform like Xerago’s CVM application neither requires an investment on the software, nor the training/skills to work because it is available on the cloud.
The perspective of conversion rate is absolutely not related to a CRM because it focuses on the existing customers, who have been already converted. Other than the re-engagement, an effective CVM also works to convert the customers for up-selling and cross-selling products. It also attracts the new customers towards the brand, by building trusty relationship and it is definitely a profit booster.
Although some freebies are available in the market, the software with a precise functionality and intelligently created automatic processes like Xerago’s CVM platform incurs expense, but the advantage is the users can pay only for the usage.