Measuring customer value helps every B2B company to increase its profitability, improve ROI and make it more competitive.
Among B2B companies, customer value metrics are still underutilized when it comes to improving competitive advantage, growth, profitability, and cash flow. According to our research, only 7% of the boards of directors and management teams of Finnish companies keep track of customer lifetime value (CLV), for example. We believe that the right customer value metrics can help every B2B company to improve its profitability, increase its return on investments and enhance its competitiveness.
We work together with your organization to define your objectives for measuring customer value.
• We will review your company's strategic objectives and all the relevant metrics currently in use.
• We will make a proposal for what and how to measure and agree on roles and responsibilities along with the schedule.
• We will build and test the metrics, analyze the results, and – based on the results – complete the first action points.
• During the process, your organization including the board of directors and the management team will learn to interpret and use the metrics.
B2B service company
This B2B service company wanted to increase the average annual billing of its customers, develop value-based sales and pricing as well as find the most profitable customer segments in the global market. The company was using the NPS (Net Promoter Score) metric, which did not provide the customer data they needed to achieve these objectives.
We started by calculating the company’s customer lifetime value (CLV). The calculation was made for five years retrospectively. It demonstrated that the board and management's perception of the customer life cycle, its value and development over the five-year period was partially incorrect. The calculation also revealed differences and development needs in the focus areas of the company's service product range.
As a result of our work, the company was able to increase its prices more than expected and target its offering to the most profitable customers. The company also created a customer financial statement and customer balance sheet. They make it easier to monitor the development of customer value and communicate to the investors what impact customer value has on the company's value and future prospects.
‘We are now able to lead the development of customer relationships in a systematic way. It will be easier to discuss strategic objectives and investments with investors.’
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