Value Chain Mgnt.
Client Benefits


How is it measured?

Reduction of churn rate.

Increase in number of repeat purchasers.

Reduction in customer acquisition costs.

Net customer base growth (higher than industry).

Market share growth.

Improvement of customer satisfaction ratings.

Customer loyalty performance and customer satisfaction ratings rank amongst the most significant strategic objective measures as it tends to address qualitative and competitive performance, and its trend is often indicative of the short term corporate financial performance.

How is the result improved upon?

Provide the clients with incentives to stay and return.

Fast implementation of new and innovative offer packages.

Provide an offer package with greater value to price.

Reach a broader market need by adapting the offer to specific needs.

Adopt a competitively focused strategy to win customers from competitors.

Offer quality and attentive service.

How does VCM influence the result?

v     Innovation and anticipation of customer needs, through collaborative planning and joint focus by the firms participating in the value chain.

v     New services improves customer satisfaction and loyalty as customers are given more choices, flexibility and options.

v     Faster time to market increases customer satisfaction from reduced waiting time; this can be facilitated trough joint development and planning.

v     Offer superior value at a fair price; increase the customer's relative value to price.

v     Flexibility of offer; allows customers to choose from a wider range of options; the firm thus meeting a broader range of needs.

v     Solution oriented offers: through partnerships, firms can resolve many system integration issues and facilitate, or even coordinate, the implementation process of the customer solution.

v     Provide increased reliability and dependability, greatly due to improved processes and tighter relations with other partners in the value chain.

v     Spirit of partnership between firm and customer.

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Increased ROA
Higher Sales Productivity
Broader Market Reach
Better Partner Relations
Customer Loyalty


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