ABSTRACT
This chapter discusses the transaction versus relationship approaches to customer value, and assesses the strengths and weaknesses of the Calculation of Customer Profit Contribution (CCPC) model. It explains customer-oriented process cost calculation, and discusses the concept of customer lifetime value (CLV). The chapter focuses on the three phases of the Customer Value Development (CVD) model. In the context of CVD, it is especially apparent in the analysis of customers with a low customer value and only slight customer satisfaction that a company is not in the position of being able to improve product features which are important for, and which are found unsatisfactory by, the customer, without increasing the level of costs. The establishment of professional relationships between customers and a company entails that the company will profit from the relationships in the long term. The implementation of the three phases provides a well-founded and comprehensible basis for the formulation of specific customer strategies.
