SALES TECHNOLOGY
Customer Value Management Is Here JIM BERRYHILL
Widely-used CRM applications manage customer “relationships,” but do little to capture, manage, and leverage data associated with customer “val- ue.” Customer value management (CVM) adds not only the discipline and methodology to capture value data, but also a math engine to create action- able intelligence from value data – driving better business outcomes for both buyer and seller.
Such knowledge allows companies to accelerate their success and unlock their full potential. To fully utilize CVM, an enterprise translates custom- er value data into valuable insights and assets so product managers, mar- keters, salespeople, value engineers, professional services teams, and customer success teams can leverage it across the organization.
While customer value management (CVM) is not new, the enterprise-class applications that enable value practic- es to accelerate, automate, and scale effectively are new. CVM programs like ValueCloud®
of a customer’s or prospect’s relation- ship relative to the value promised, delivered, and derived. They use data and insight to quantify and measure value and to create tools and assets that improve business performance throughout the customer journey.
aid the management
WHY DO I NEED CVM? Understanding how customers use your product or solution – and where they derive value – is hugely important through every stage of the customer journey. CVM comple- ments and completes CRM and cus- tomer success functions. It adds the
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“why” to the “what we are doing.” Even in the early stage of that journey, at marketing, CVM helps create assets that market to specific demands that derive real customer value. At the pre-sales stage, that means more, better-quality leads. At the sales stage, CVM improves attach rates and converts leads to opportuni- ties more efficiently. With the assets derived from a CVM solution, close rates improve by sell- ing directly to the value derived by each specific customer. Deal velocity accelerates with CVM, reducing the manual work required to create a value hypothesis for each customer or each sales opportunity. Post-sales results show reduced churn rates and increased performance, with ongoing subscriptions and greater ability to cross-sell or up-sell. Typically, users quote a 20 percent
improvement in lead conversion and close rate, and a 50 percent improve- ment in deal velocity. Those are huge numbers when scaled across an entire enterprise.
Many companies have built value practices that do amazing work, and that has really shifted the needle in
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