About the book

Customer value management should be understood as a managerial approach, in which customers are perceived as the company’s asset, the value of which may be measured and increased through organisation of the processes around customer relationships. The book seeks to answer the question how customer value to company (customer lifetime value) should be managed on the Internet, and more specifically, how to incorporate the Internet in the process of delivery of proposed value to customer in order to increase their lifetime value and thus increase the value of the company and generate value to the company’s shareholders and other stakeholders.

The main goal of this paper is to present the possibilities of Internet-based customer value management and a model describing this process. Problems of current state of knowledge of online customer needs and behaviours, associated with the first pillar, are not the main focus of the paper, for the author’s intention is to concentrate on the presentation of the concept in form of a model, and not to describe current tendencies, acquired data or prognoses. This approach stems from the stand taken by Shapiro and Varian in the monograph Information Rules: A Strategic Guide to the Network Economy, where the authors stress that they ‘seek models, not trends; concepts, not vocabulary; and analyses, not analogies’ (Shapiro & Varian 1998).

Compared to numerous publications on the use of the Internet in marketing, this book attempts rather at describing a managing approach to customer relationships than at presenting a particular tool of e-marketing. Moreover, the deliberations are not limited by branches or sectors – differences in the approach towards customer value management are perceived through the prism of different types of value exchange between the company and customers. The author believes that particular types of value exchange have a greater influence on the differentiation of actions associated with online customer value management than the type of market (B2C/B2B) on which the company operates.

Series: Management for Professionals
Springer 2015
152 p. 9 illus., 2 illus. in color.
ISBN 978-3-319-09855-5

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See also:

Internet-Based Customer Value Management
Developing Customer Relationships Online
Tymoteusz Doligalski, Springer, 2015
Customer Value Management

About the Author

Dr. Tymoteusz Doligalski is an assistant professor at Warsaw School of Economics. His research interest include internet marketing, e-commerce, customer value management, and business models. Dr. Doligalski is the founder of Postgraduate Studies of Internet Marketing (MBA-level program, until 2014 more than 700 participants) at the Warsaw School of Economics.

Tymoteusz Doligalski

He is also the academic supervisor of student teams taking part in Google Online Marketing Challenge (2014 - Global Winner , 2012 - Global Winner, 2011 - European Winner). See more >>

Table of Contents
1. Characteristics of the Concept of Customer Value Management
1.1 Introduction
1.2 Characteristics of Customer Value Management
1.2.1 Perception of Customer Relationships as Value Exchange
1.2.2 Customer Orientation
1.2.3 Measurement of Customer Lifetime Value and Customer Knowledge Management
1.2.4 Portfolio Approach Towards Customer Relationships
1.2.5 Focalisation on Customer-Related Processes
1.2.6 Association of Customer Relationship-Oriented Actions with the Company’s Value
1.2.7 Perception of the Role of Customers in the Company’s Business Model
1.3 Possibility to Employ Customer Value Management on Various Markets
1.4 Limitations of the Concept of Customer Value Management
1.5 Selected Models and Concepts of Relationship Marketing
1.5.1 Conceptual Model of Customer Equity Management
1.5.2 Conceptual Model of Personalised Marketing
1.5.3 Conceptual Model of Delivering Value to Customer
1.5.4 Concept of Market Driving and Market Driven

2. Influence of the Internet on Value to Customer
2.1 Introduction
2.2 Value to Customer in the Context of Exchange
2.2.1 Concept of Value to Customer
2.2.2 Categorisation of Constituent Values to Customer
2.2.3 Pricing Strategies on the Internet
2.2.4 Transaction Costs of a Customer on the Internet
2.2.5 Customer-Generated Values.
2.2.6 Types of Internet-Based Value Exchange Between the Company and the Customer
2.3 Product Virtualisation
2.3.1 Product Digitalisation
2.3.2 Product Enrichment in Information
2.4 Customer Value Co-creation
2.4.1 Mass Customisation
2.4.2 Value Co-creation Oriented at Other Customers
2.5 Online Customer Experience
2.5.1 Internet as a Tool for Creating Customer Experience
2.5.2 Functions of Experience in Value Proposition
2.6 Network Effects
2.6.1 The Nature of Network Effects
2.6.2 Multi-sided Platforms
2.6.3 Competing by Means of Network Effect
2.7 Strategies of Internet-Based Value Propositions
2.7.1 Efficiency Strategy
2.7.2 Free Benefit Strategy
2.7.3 Strategy of Complete Customer Solutions
2.7.4 Strategy of Unique Benefits
2.7.5 Strategy of Value Co-creation

3. Conceptual Model of Internet-Based Customer Value Management
3.1 Introduction
3.2 Defining Value to Customer
3.2.1 Selection of Value Proposition
3.2.2 Selection of the Target Group
3.3 Creating Value for Customer
3.3.1 Organisation of the Internet-Based Customer Value Management Process
3.3.2 Resources and Capabilities of Online Companies
3.4 Communicating Value to Customer
3.4.1 Customer Attraction
3.4.2 Trust Building
3.4.3 Customer Trust Acquisition on the Internet
3.5 Delivering Value to Customer
3.5.1 Customer Portfolio Segmentation and Value Exchange
3.5.2 Increasing Customer Involvement
3.5.3 Customer Loyalty Building
3.6 Generating Value for the Company
3.6.1 Internet and Competitive Advantage

4. Financial Aspects of Customer Value Management
4.1 Introduction
4.2 Calculation of Customer Lifetime Value
4.2.1 Calculation of Customer-Generated Values
4.2.2 Calculation of Customer Costs
4.2.3 Customer Relationship-Associated Risk
4.2.4 Criticism of Customer Lifetime Value
4.3 Comparison Between Customer Value Management and Securities Portfolio Management