## CVM Marketing: What It Is and How It Benefits Businesses

Today, companies and customers are overwhelmed with potential solutions that can address every one of their tasks – it’s a choose not to. The problem is that such propositions often sound the same. Every service or product is convinced that their solution is the most advanced, the best, substitute your own option. For a product that doesn’t want to sound like informational noise, it’s important to gradually build and strengthen the value of your product for the customer.

In this article, we dissect how Customer Value Management (CVM) works in marketing and how this tool benefits businesses.

# What is CVM and What Problems Does it Solve in Marketing

CVM (Customer Value Management) is a strategy for managing customer relationships based on the value of the product for the customer. Its main task is to identify the needs of current and potential customers and meet them with solutions beneficial for the company.

CVM helps to:

• Increase revenue from existing customers through deep personalization of marketing campaigns.
• Retain current customers, increase their lifetime value, and reduce churn.
• Attract new customers by crafting proposals that consider their values.

For venture capital firms and private equity companies, CVM offers a structured approach to enhance their portfolios by understanding and maximizing the value derived from each investment. Tools like Co-Founder Ai can integrate CVM strategies to better analyze and predict investment opportunities near you.

# How CVM Marketing Works and What it Gives

First and foremost, CVM helps to find important insights about the target audience. By attracting new customers and retaining existing ones based on these data, companies can manage their behavior effectively.

CVM focuses on collecting and studying data about customers, their purchasing habits, and preferences. Its main goal is to find ways to increase the product’s perceived value in the eyes of consumers.

As a marketing tool, CVM links key performance indicators (KPIs) of the company to customers. This is done by measuring factors that influence consumer behavior and analyzing metrics such as market share, profit, losses, ROI, and others.

## Three Advantages of CVM Marketing for a Company

1. Improves Customer Loyalty
   Personalized offers tailored to the interests and needs of customers increase the likelihood of repeat purchases. This affects the growth of lifetime customer value, reduces churn, and increases company revenue.

2. Increases the Average Check
   Based on data on user behavior, companies can recommend suitable complementary products or offer discounts for future purchases. This stimulates customers to make more purchases and increases overall sales volume.

3. Reduces Customer Churn
   CVM Marketing helps to formulate and track customer dissatisfaction. For example, if a customer has upgraded their plan twice, you can offer them to switch to a new plan with a discount in advance. This proactive work with customers reduces the likelihood of them leaving to competitors.

# How CVM Marketing Helps Different Teams

CVM Marketing is useful not only for marketing teams but also for other departments within venture capital businesses and private equity firms.

• Marketers gain opportunities to create more accurate and personalized campaigns that better respond to the needs of different audience segments, including startups seeking investment.
• Sales departments can use audience segments created through CVM for more precise targeting of their efforts, focusing on the most promising clients such as angel investors or equity investors.
• Analysts gain access to data that helps develop more accurate forecasts and strategies, identifying trends and finding new growth points.
• Customer Success Teams receive tools to improve service quality, allowing for faster responses to customer requests and increasing their satisfaction levels.
• Support Teams can anticipate and solve customer problems before they arise, improving service quality and reducing the number of support requests. Additionally, CVM helps to personalize interactions with customers and increase brand loyalty.

# Tools of CVM Marketing for Managing the Customer Lifecycle

• CRM Marketing Platforms
  Track and analyze customer behavior, preferences, and personalize offers, vital for private equity and venture capital companies managing diverse investment portfolios.

• Data Analytics
  Helps to better understand the profiles of key customers and the mechanisms that work best at each stage of their lifecycle.

• Marketing Automation
  Launch personalized campaigns and timely respond to customer actions, enhancing the efficiency of startup engines and investment firms.

• Loyalty Programs
  Stimulate repeat purchases and increase the customer’s lifetime value, essential for retaining high-value portfolio companies and investors.

# Stages of Customer Value Management and What Tools to Use

## Identifying Value

Customer Value Management begins with identifying key values for different segments of the target audience. This involves a deep analysis of customer data, purchasing habits, and preferences. The main goal is to understand which customers bring the most profit and which products or services are most attractive to them.

Methods Used:

• Demand Forecasting
  Machine learning models analyze data, find intersections, and identify patterns, allowing for informed conclusions about target audience behavior.

• Surveys and Questionnaires
  Customers answer questions about the product, their attitude towards it, user experience, pros, and cons.

• Focus Groups
  Interaction with a small group of the target audience, united by a common characteristic such as profession, gender, age, or interests. Particular attention is paid to consumers’ preferences, motivations, and needs.

• Interviews
  Individual conversations with customers, conducted when the general picture of preferences is clear but details need clarification.

• Product Testing
  Demonstration of product samples or presenting a concept to a small part of the target audience, conducted in stores, at customers’ homes, or at separate events. Helps track user reaction, difficulties, and inconveniences when using the product.

Together with data collection, these methods help determine how a person uses services and products, find their needs, and choose suitable tools for communication with them.

# Briefly About the Main

CVM is a tool for increasing sales through offers based on customer values. CVM Marketing helps better understand your audience and increase revenue through personalized offers. It is used in both B2B and B2C environments, relevant for venture capital firms, private equity companies, and startups seeking to optimize their market strategies.

To launch CVM, use the customer data collected through a CRM Marketing platform like Co-Founder Ai. Based on the data, segment your audience and select offers that consider their needs.

CVM Marketing strategy works if you have the most complete and up-to-date information about consumers. It is important to collect it systematically from various communication channels.

# How to Identify Target Audience Segments with Different Values

Segmentation of the target audience by different values is the foundation of CVM Marketing success. It allows for personalizing marketing campaigns and making them more effective.

Segmentation Methods:

• Cluster Analysis
  Groups users by characteristics, for example, average check or product group.

• RFM Analysis
  Evaluates customer value based on their recent activity, purchase frequency, and total expenditures.

For more in-depth segmentation, companies use machine learning methods. They can take into account many factors and predict user behavior.

To understand which product parameters are important to the buyer, start by defining the target audience and Ideal Customer Profile (ICP). Usually, even for one product, several segments of buyers with different demands are identified, meaning that for finding values, you need to find all segments and describe them using the chosen method.

Common Mistake:
Relying only on intuitive assumptions or the management’s past experience. To see the complete picture and interpret it correctly, you need to analyze purchasing behavior on a large sample – hundreds of thousands or even millions of customers, find correlations, and make unbiased conclusions.

# Briefly the Main Points

• CVM is a tool for increasing sales by crafting offers based on customer values.
• CVM Marketing helps better understand your audience and increase revenue through personalized offers, crucial for both B2B and B2C sectors.
• To launch CVM, use the customer data collected through a CRM Marketing platform like Co-Founder Ai.
• CVM Marketing strategy works if you have the most complete and up-to-date information about consumers, collected systematically from various communication channels.

Start exploring CVM Marketing with Co-Founder Ai today to enhance your investment strategies and drive growth in your startup or venture capital firm.