Masters in FMSCo-Taught By : Ms.Dimple,

Assistant Professor, FMS DepartmentNIFT-Delhi

The imperative of the 21st Century Golden Rule 1: PUT THE CUSTOMER FIRST Golden Rule 2: STAY CLOSE TO YOUR

CUSTOMERS Golden Rule 3: PAY ATTENTION TO THE

ATTENTION DETAILS

CRM

Customer Need assessment & acquisition

Customer development through personalization & customization

Customer retention & referrals for new ones

Customer equity leverage through cross selling and up

selling

Customer perceived value (CPV) is a difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total Customer Value is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. Total Customer Cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychic costs.

What makes a customer profitable? A profitable customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling, and servicing that customer.

Customer equity is the total of the discounted lifetime values of all of the firm’s customers. Clearly, the more loyal the customers, the higher the customer equity