Understanding Customer Value in CRM: Examples from Starbucks and Booking.com

Customer Value Concept:

Customer value refers to the perceived benefit that customers receive from a product or service compared to the cost of acquiring and using it. It is a key concept in marketing and customer relationship management (CRM) that focuses on creating and delivering value to customers.

Types of Values Companies Can Create:

• Functional value: Tangible benefits or features that meet customers' functional needs.
• Emotional value: Positive emotions and experiences derived from using a product or service.
• Social value: Social benefits or connections gained through a product or service.
• Experiential value: Overall experience customers have when using a product or service.

Role of Customer Value in CRM:

Customer value plays a crucial role in CRM as it helps companies build and maintain strong relationships with their customers. By understanding and delivering the value that customers seek, companies can increase satisfaction, loyalty, and retention. CRM strategies aim to provide value at every touchpoint of the customer journey.

Examples:

Starbucks: Offers functional, emotional, and experiential elements through high-quality coffee, cozy ambiance, personalized service, and a sense of community.

Booking.com: Provides functional and experiential value by offering a platform for booking accommodations with features like real-time availability, user reviews, and personalized recommendations.