CVMBoK

A Guide for Customer Value Management

Collaboration with Product Management team

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Purpose of functional area #

Role of Product Management team is to ensure the desired Persona needs are discovered and fulfilled by product value propositions.

Inputs: How it impacts CVM #

  • Provides the core value proposition and customer experience of using it
  • CVM function is operating within the boundaries set by product capabilities and how well it meets the needs of the Persona
  • Provides essential customer data for future CVM work such as product usage history, purchase history, product attributes, availability, cost, and technical details
  • Helps or hinders CVM by producing a product that is easy or hard to personalize
  • May cause undesirable side effects for CVM e.g.:
    • New products that replace old ones may result in customer complaints and churn
    • Uncompetitive features, capabilities may result in customer complaints and churn
    • User experience issues may result in customer complaints and churn
    • etc.

CVM work related to function #

  • CVM may needs to agree who is responsible for customer onboarding and education on product features
  • CVM team conducts product upsell
  • CVM team conducts cross-sell of other products, add-ons

Outputs: How CVM impacts this area #

  • Provides insights about product-segment fit in terms of:
    • Product adoption, usage, retention and revenue KPIs
  • Provides insights about the quality of product features based on current customer base usage patterns
  • Provides insights about the pockets of locations, channels, customer demographics etc which outperform the average product user and suggesting improvements to product features

Key handshakes to consider #

For CVM to be effective, it’s crucial that products not only meet basic customer needs but are also structured in a way that allows for personalization and data-driven strategies.

  • Coordination on product data collection;
  • Ability to tailor product features to customer segments;
  • Personalization readiness to support targeted customer segmentation and offer personalization
  • Joint development of product feature bundles that align with customer segment needs and preferences.
  • Collaborative efforts in channel strategy to optimize product visibility and customer engagement.

Impact of collaboration quality on CVM team results #

HIGH- lack of alignment with Product team has drastic negative impact on core CVM KPIs achievement.