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Customer orientation is all about understanding and managing both the value companies create for customers and the value customers create for companies
Customer orientation
Although many companies perceive themselves as customer-oriented, it is not that common to manage the "value to company" dimensions of customer orientation
Customer orientation
Measuring customer value can be challenging, and many perceive high investment and complexity and uncertain benefit as barriers to pursue CVM
Barriers to adapting CVM
However, the companies that succeed in breaking down the barriers are rewarded financially and seem to be more resistant to market turbulence
Average Return on Assets Per cent
Company value to customers
Customer value to company
Measurement of customer value
84.7%
Implementing CVM requires investments
CVM provides no significant improvement
Not using CVM
Customeroriented
CVM is too complicated
38.0% Using CVM
CVM provides an incorrect estimate
The proposed Quantifying benefits of customer value implementing does not CVM are too correspond well uncertain with our culture
Average ROA – 2007-2010 Per cent 10.2 7.0
2.9
7.5 2.3
Using CVM
Top management will not support CVM
Recent adopters Non-adopters
5.7 2006
2009