Explain customer value management and the two basic goals of customer value management

What will be an ideal response?

Customer value management is a progressive, practical approach that has two basic goals:
• Deliver superior value to targeted market segments and customer firms.
• Get an equitable return on the value delivered.
Customer value management relies upon customer value assessment to gain an understanding of customer requirements and preferences, and what it is worth in monetary terms to fulfill them. Although firms may be able to accomplish the first goal without any formal assessment of customer value, it is unlikely that they will be able to accomplish the second goal without it. Simply put, to gain an equitable or fair return on the value their offerings deliver, suppliers must be able to persuasively demonstrate and document the superior value they provide customers relative to the next-best alternative for those customers. When suppliers do not spend the time and money on customer value management, they are unaware of how much not doing it is costing them.