Long term sustainable relationships are built on mutual value. What value does the stakeholder derive from the relationship? Conversely, what value is created for the organisation by the stakeholder? Understanding value, how it is created and how it can be sustained over time are essential components for the acquitiion and retention of customers and other stakeholders.
Value management starts with stakeholder identification and value profiling - what do
customers see value in? This leads to the construction of effective value propositions,
value co-creation processes and value measures. In turn, assessment of customer lifetime value, taking into account retention rates and future margin, is a key element in determining value back to your organisation.