A FAIR VALUE EXCHANGE
A fundamental requirement for future business success lies in understanding and quantifying the value exchange between you and your customers. How much value do they bring you (which we call Value to Business or VTB), compared to how much value they perceive they receive from you (we call this Customer Perceived Value or CPV). Our experience shows that customers don’t hang around too long if they perceive the exchange to be unfair and equally, as ‘cost to serve’ grows in many businesses, being overly generous destroys customer margin.
More positively, if you know which products, services and aspects of the customer experience are best at driving value up for both you and your customers, you can then determine your optimal Marketing and Business Strategy. We refer to this as having an Actionable Customer Strategy.
We have spent several years developing an insight capability to gain a deep understanding of customer behaviour. Using first-party data, we paint a granular picture – or Dynamic Behavioural Segmentation – of how your customers deliver value to you and perceive the value that they receive.
Consequently, we identify the ‘Drivers’ of key customer ‘Transitions’ over time, know exactly which customer journeys will optimise revenue growth (or result in dormancy or attrition) and pinpoint where you need to invest your Marketing and CX budgets. Resulting in the acquisition and retention of long-term, profitable customers.