Page 26 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Hitesh Jhanji, Lovely Professional University
Unit 2: Customer Value

Unit 2: Customer Value Notes

CONTENTS
Objectives
Introduction

2.1 Customer Relationship Management: Components and Architecture
2.1.1 Technology and CRM Technology Components
2.2 Customer Value

2.3 Value Creation
2.4 Summary
2.5 Keywords
2.6 Review Questions
2.7 Further Readings

Objectives

After studying this unit, you will be able to:
 Determine the customer relationship styles

 Study the meaning of customer value
 Determine the types of customer value
 Analyse the concept of value creation

Introduction

Recently there has been growing tide of articles, papers and even conferences devoted to the
question of the future of business. As we approach through the new millennium, we are living
in a world that is the most unstable, dynamic, exciting and frustrating for the last decades. Not
only change it but also the rate of change is accelerating. Operating in an uncertain, highly
competitive and highly complex business environment brings so many questions to the
businesses. Business insights often fail to recognize that their marketplace/market space changes
every few years. Leading edge companies increasingly seek ways to measure customer
satisfaction, loyalty and value as mean of setting strategies of the companies.
Essentially the point at the issue is whether traditional business approaches for the conditions
that now prevail in the beginning of the new millennium, basic principles still apply but with
this contribution I will try to clarify the concept of customer value and how the importance for
the markets and difference between customer satisfaction and customer value.

Because the focus on the business is to satisfy of the customer needs and wants so the practice
may need to be changed fundamentally. Complex business environment brings so many
questions to the companies. Their profitability and viability will depend on the efforts of an
increasingly diverse customer value. Looking more closely at the question of customer value
could help for the challenges for the new millennium.

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