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Concepts of Customer Value

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Customer Relationship Management

Part of the book series: Springer Texts in Business and Economics ((STBE))

Abstract

In light of the digital transformation relationship marketing as the heart of strategic CRM has gained substantial traction as markets get increasingly competitive and customers get increasingly demanding. In order to stay relevant, companies must create value for the customers while at the same time extracting enough value from them. Strategically implemented CRM is a key component to meet this challenge by balancing Customer Perceived Value and Company Value. Using a customer-value based approach to CRM, profits for the company as well as the satisfaction of their customers can be increased in the long run. Subsequently, the underlying processes are illustrated using the Satisfaction-Loyalty-Profit Chain (SPC). We explain why delivering value to the customers in the end translates to value for the firm. Moreover, we describe the different dimensions of value that a company can derive from customers and we consider various links within the SPC. Finally, using empirical studies this chapter shows that these links are not always linear and symmetric, and vary across industries and customer segments.

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Authors and Affiliations

  1. J. Mack Robinson College of Business, Center for Excellence in Brand and Customer Management, Georgia State University, Atlanta, Georgia, USA

    V. Kumar

  2. Department of Retailing and Customer Management, University of Cologne, Cologne, Germany

    Werner Reinartz

Authors
  1. V. Kumar
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  2. Werner Reinartz
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Kumar, V., Reinartz, W. (2018). Concepts of Customer Value. In: Customer Relationship Management. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-55381-7_2

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