Platforms come and go and companies change how and when they sell, but the main goal of business remains the same: to generate profit. Without profits, there are no resources for growth or for marketing! That’s why it’s critical for savvy digital marketers to be able to quantify their contributions and the long-term value of their work to the company’s bottom line. 

Customer Value Marketing (CVM) is a new strategy for B2C businesses which aims to maximize profit from marketing activities and quantify it in such a way that businesses know which tactics and customers are delivering the results they need. CVM compliments and extends traditional inbound marketing because it makes the choices of marketers directly responsible for and responsive to income production.

The strategy is based on the customer lifetime value and marketing automation concepts, with the main aim of building the highest possible value for consumer services customers over time. This goal is accomplished through automatically personalized client-seller interactions that take into account the B2C buying process in a modern, digital world.

B2C vs. B2B Marketing

Business-to-consumer marketing has long been differentiated from its counterpart, business-to-business marketing, based on the idea that while the former focuses on quick solutions and enjoyable content, B2B marketing is more concerned with building relationships and proving a product's return on investment for a business customer. As customers increasingly spend more time researching brands and their reviews, online, however, the marketing landscape is changing.

The B2C purchase process is becoming more nonlinear and less predictable and resembling B2B in some ways. New client acquisitions are becoming more expensive and requiring more touchpoints. More market fragmentation also means a greater degree of customer segmentation and the need to not only market your product more specifically but build loyal followers that will buy your product repeatedly and evangelize your brand to others. With B2C, it’s no longer just about quick, easy, replaceable transactions.

The cost of retaining existing clients is often 10 times lower than the cost of acquiring new ones. Why? Well, for starters there’s a 2-in-3 chance that a customer who bought your product once will want to buy it again. Second, existing customers are the best target audience when you want to introduce something new. Finally, as people increasingly rely on reviews, delighting existing customers can become a cost-effective way of obtaining new ones since you are simply relying on free word-of-mouth.

Customer Value Marketing, therefore, includes these three characteristics of the B2C sector, but not by leveraging automation strategies to focus on acquiring new clients; rather, it uses automation to put a strong emphasis on keeping and maximizing profit from existing customers in hopes that they will buy repeatedly, and that their friends and followers will come along for the ride.

The Drivers of Customer Value Marketing

Now that we’ve established the need for customer value marketing in a hyper-segmented B2C space, let's talk specifics. What are the hallmarks of an effective CVM approach? Experts have identified four key drivers:

  • Outstanding quality service
  • Marketing trademark price
  • Existing relationships or experiences
  • Personal experience and educational bias

To summarize, the better the quality and personalization of your product or service, the higher your clicks, conversions, and ROI will be. If you want to get the best effects, execute personalization at each and every step of the lead management process, from lead nurturing to lead retention. But this isn’t new. Where Customer Value Marketing takes the next step is by maintaining that the process of personalization should not end at the moment of the purchase. 

As time passes, customers change their interests, shopping patterns, and habits. Therefore, it is critical to make the personalization-related tasks an ongoing, not a one-time, activity. Dynamic personalization allows you to both keep the customer and increase her value over time. And it doesn’t stop there. That personalization and repeated interactions allow you to build more accurate look-alike groups and get more returns from your remarketing efforts and other paid ads.


The Importance of Customer Value Marketing

Customer interests are essential to both the customer and the retailer. Customer value marketing is an indicator that can create better product and service offerings. Positive customer value marketing keeps the product in demand in the market and leads to repetitive business for the seller. 

Customer value marketing can also be regarded as "cost performance." When customers realize that they have received positive value from the money paid for their products, they buy again, spread word of mouth, and lead to market success.

Customer value marketing is one of the most critical new tactics for a B2C business, but it is challenging to apply and calculate. Therefore, it is essential for the pricing and product departments that may take advantage of it to strike the right balance between features and pricing to derive value after the purchase.

Toward CVM In 2023

Successful customer value marketing means setting up your sales, marketing, and customer service teams for success, communicating more effectively, and ensuring that you’re having good conversations with your clients that build relationships over time. Stop wasting valuable resources on legacy tactics — reallocate your marketing spend to attract and engage the right customers, in the right place, at the right time, using current methods such as CVM. If you still have questions, contact DaBrian Marketing Group today.


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