CVM offers financial practices a new and better way to view and interact with customers. The new way is known as customer value management (CVM) and its practical application is CVM Systems flagship CVM module.

Underpinning CVM is the principle that each customer is an asset of the business. With this approach, the return on an asset is a key measure. In the context of CVM this measure is expressed as individual customer earnings, or ICE.

ICE is the annual profit of each customer as a percentage of revenue. By using the life expectancy and the quality of relationship with the customer, the net present value (NPV) for that customer can be calculated.

By measuring both the NPV and ICE for each customer, it becomes possible to implement a profitable CVM strategy at the individual customer level. Put simply, CVM enables the adviser – and the practice – to easily manage and increase the value of each customer.

How it works

CVM is a web-based software solution specifically developed for financial practices. The system is mainly ASP.net 3.5 based with a SQL 2005 database. The starting point is the inbuilt Fee for Service module to create, cost and price services. Then through the use of dashboards, CVM enables advisers to focus on key areas of their customer base. Each dashboard details specific KPIs such as current ICE,  NVP, potential revenue, value of prospects etc. Advisers can then systematically “work” individual customers to increase business revenue while satisfying customer needs.

Best of all, CVM is easy to use and unlike other “customer management” applications, it’s geared to pay its way by generating additional revenue via its unique X Seller module.