We prefer to use the concept of a 3 x 3 ‘Value Map’ to guide our marketing strategy and execution, as we discussed in this previous post on customer value . The concept of ‘captured customer value’ is pretty straightforward for most clients, but the ‘uncaptured value’ can get people to scratching their heads.
So before we move onto the promised discussion of ‘marketing allowable’ for each Value Map cell, I’d like to briefly discuss how to calculate ‘Uncaptured customer value’.
In financial services markets, the example given in the initial post is a good approach. With (typically) contract based products and services, comparing the product holdings (and therefore typical income) of a customer with ‘best customers’ like her, allows you to determine what products she could reasonably buy from you. She either does not have these accounts (for example) or has them with a competitor, but these are uncaptured potential value for you for this customer. [Read more…]