Customer Value Measurement Essay Example | Topics and Well Written Essays - 2000 words

Customer Value Measurement - Essay ExampleNew ways are requisite to achieve an edge and to stand one step ahead of others (Keller 2003).In the phase of increasing competition, many another(prenominal) corporate mission statements set clients as the focus of an organisations business activities, and key thinkers have defined the whole tone of goods and processs with reference to how well they satisfy needs and expectations of the customer base (Johnson et al 2005). At the other end, some companies are paying performance premiums. According to Aaker & Keller (1990) delivering superior value to carefully targeted customers seems to be the broadly speaking accepted path to sustained profitability (Keller 2003).In the light of the above, this essay essay is an attempt to finish off how developing a customer orientation affects the profitability of firms by referring to the fundamental elements of a customer dictated marketing strategy segmentation, targeting and positioning. It al so presents a comprehensive understanding of the customer and the customer value autocratic by using relevant examples.As competition grows bigger, more and more organisations try to maximize customer value in order to achieve their full potential and get a competitive edge. there are several reasons for this awakening and change in perception (Porter 1990). Realizing the role of customers and customers equity, companies strive at solid their customers through the creation of brand equity (Aaker 1990). Customers are fundamental stakeholders of a company. According to Sacconi, (2004), customers need attribute products and services as well as increased customer value and customer satisfaction (Sacconi 2004). A customer is one who buys and uses goods and services. They are individuals who are affected by or who affect the product and service supplied, and bear the value and cost of a companys activities (Sacconi 2004). In most companies, customers are seen as the most important as sets. For example, Berry & Parasuraman (1991) argue that, It is easier - and much cheaper - to keep existing customers than to get new ones. To Berry et al. (1990), the benefit from achieving convenient and loyal customers stems from the fact that, the willingness for future repurchases will be much higher for at rest and loyal customers than for displease and indifferent ones. Despite this awareness concerning the importance of customer satisfaction, it is beyond the ability of many of todays companies to maintain squelched customers (Aaker 1989).To fully understand the meaning of customer value and customers value creation, Aaker (1990) argues that this should be approached from the customers perspective. Today, most companies have realized the importance of satisfied custome