by Kevin Craine | 4/5/16
The notion of “Customer Lifetime Value” (CLTV) is a concept and calculation that helps organizations determine the dollar value associated with their long-term relationship of any customer, determining just how much that customer relationship is worth. Used by marketers and C-suite executives, CLTV is a prediction of the net profit associated with the entire relationship with a customer. While the calculations can be a bit arcane, the idea of customer lifetime value is an important one because it encourages firms to shift their focus from customer acquisition to the long-term health of their customer relationships.
More and more CMOs are retooling their efforts to more ardently optimize customer lifetime value, and that means keeping customers engaged and coming back for more. But it can be an uphill battle. According to Ernst & Young, the world’s third largest professional advisory firm, just 25 percent of US consumers consider brand loyalty as something that impacts their buying behavior. Research from Nielsen, the global marketing research firm, found that 78 percent of consumers are not loyal to any particular brand.
Customer satisfaction and customer loyalty are critical success factors for most organizations. As a result, there’s a new mantra pervading business today: deliver the optimal customer experience. But that is hard to do when the back office systems and processes are burdened by manual workflow, makeshift systems and paper files. Simply put, there's no time for old paper-bound methods when today’s customers expect real-time service and the very profitability of your company hinges on the efficiency and responsiveness of your customer experience.
Companies Building Customer Value
Every size and type of business needs to ensure that customers keep coming back for more. But to do that you must adopt content management strategies and systems that support superior customer experience. In financial services this might mean automating new account openings and mortgage applications and eliminating the “stacks of paper” that perennially plague the process. In health care this might involve improving the way that claims, records, notes and other case documents are collected, shared and secured so that case outcomes are improved and patients come away with a superior service experience. Other examples are found in industrial, telecom and government operations, and across industries in common activities like human resources, accounts payable and contract management.
How can you do it? Advances in the new generation of ECM systems bring data and technology together in a way that is more agile and integrated than ever before; and that can be a secret weapon for superior customer experience. Look for systems that bring together capture, content management, viewing and redaction, and case management tools into one platform from which you can enhance and extend customer experience and customer lifetime value.
Guest contributor Kevin Craine is the author of the book Designing a Document Strategy and a respected authority on document management and process improvement. He is the managing director of Craine Communications Group. For more information visit CraineGroup.com.