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A customer management philosophy for
the 21st century
eCVM™
is a term we coined at Zero Attrition; it stands for Enterprise Customer
Value Management. eCVM combines elements of Customer Relationship Management
(CRM), predictive Customer Relationship Management (pCRM), and risk management
to create a powerful approach to customer care.
Quite simply, eCVM is about each facet
of your organization treating customers consistently and in
accordance with their current value throughout the customer life cycle.
Our suite of software
products, based on the eCVM philosophy, performs a straightforward
yet revolutionary series of steps:
- Proactively predict customer behavior
for risks and opportunities at the time of acquisition and continually
throughout the customer life cycle.
- Blend the predictions and acquired
data into a value equation that is common to all divisions of an organization.
- Use the equation to ensure customers
are treated consistently across every division and in accordance with
their current value.
Why is consistency important?
Inconsistency of treatment breeds customer dissatisfaction and can cause
operating expenses to swell. For example, the marketing department might
offer a customer extra perks as a reward for the high level of business
he does with the company each month. At the same time, the accounts receivable
division might send a demand letter to the customer because he hasn't
paid a single bill in over 90 days. The customer receives conflicting
messages from your organization and your departments are not efficiently
working together to profit from the customer relationship.
Why is current value important?
Consider the following scenario: A customer is being treated according
to the value assigned to her at the time she was acquired. Since then
her value has increased dramatically but she is still being treated as
a low-value client. As a result, she's thinking of switching to a competitor.
A customer's value changes over time; so
too should the actions you take. Otherwise, you risk customer dissatisfaction
and turnover, higher credit risk, and lower profitability.
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