The concept of customer value maximization has the potential to help companies increase revenue while simultaneously growing customer trust and enhancing customer relationships, increasing overall brand perception and customer loyalty.
Xerago, a customer value maximization platform, describes CVM has a way that businesses, “can maximize customer value through continuous, relevant, context-appropriate, timely engagement with customers.” The company goes on to describe the perspective it takes to get to a point where it is feasible for businesses to undertake this approach, saying that organizations need to prioritize their ability to “Understand customer needs, offer them products to buy, incentivize them to upsize, cross-sell other products and invite referrals.”
This customer-centric approach does require a good amount of research and communication to be able to reap the benefits for your business, but banks and financial institutes can gain more customers and excel in their ability to deliver products and services to those customers by developing and deploying a customer value maximization strategy.
What is customer value maximization and how can financial institutions use it to improve their service?
Here are some of the ways that using a customer value management process can improve service quality for customers and potentially grow your business.
This works for your business in a multitude of ways. Customers that receive more personalized recommendations and treatment within your business are more likely to stay customers for longer, as well as engage with your business for additional products and services. Rather than just guessing, using a customer value management framework allows a business to use data to map customer values and interactions, and then act based on that information.
Rather than a “promote everything and see what sticks” mentality or a “wait for the customer to ask us what we can provide because they know what they need” strategy, CVM allows for a more tailored approach. While this can mean more legwork for business initially, the payout is significant. Your customers are more likely to feel like your bank values their business and see you as a resource they can turn to and trust. Your business will be able to spend more time with prospects who require a more significant investment of time.
For instance, it might not be worth cross-selling a mortgage to a recent college grad or asking a mortgage customer if they’re interested in taking out a private loan to find a college degree. But customer value maximization can point you to the right connections to maximize the value of your time and of that customers’ investment abilities.
No one wants to be hard sold on something they don’t need and no one wants to feel like an addition to the bottom line or a way for someone to meet their quota. CVM helps shape business direction and interaction so that the personalization of customer offers and interactions don’t make customers feel like they’re being hard sold, but that they’re being shown relevant options.
This makes them not only more likely to engage, and ultimately take you up on your offer, it means that they are likely to have a more positive perception of your organization. Not only does this method increase the level of quality service your business is offering, making current clients more likely to stay, but it can also lead to good word of mouth recommendations that can create new business for you.
Customer value maximization can create new opportunities for your business, as well as create a better, more personalized service. With better quality service, achieved with CVM processes, you can increase customer loyalty and retention and better connect customers with the products and services that are right for your customers and good for your business.