In the context of the spread of the COVID-19 pandemic, customer relationship management comes to the fore in terms of a company’s viability and predictability, something which in turns necessitates paying close attention to value-based management of customer capital and implementing effective tools to increase customer loyalty.
The solution for managing customer relations in such business conditions may be the use of value-based management of customer capital. This proposal provides for the integration of the concepts of value-based management (VBM), intellectual capital (IC) and balanced scorecard (BSC).
The concept of IC, which provides for the division into human, organisational (structural) and customer capital, allows one to separate in the data, in particular in the reporting, information about customers and assets directly related to customer capital. Customer capital as the set of available customer resources (informational, reputational, contractual, personal), obtained as a result of intellectual (creative) activities that provide added value for the company based on the system of customer relations.
The concept of BSC, acting as a conceptual framework, allows this data to be structured for management through perspectives (components of the BSC), including the perspective «Customers» for the management of customer capital.
The concept of VBM as a management concept aimed at increasing the value of the company, demonstrates the main purpose of such management of customer capital – the creation of added value.
Thus, an integrated approach to value-based management of customer capital means a combination of conceptual foundations of VBM, BSC and IC concepts. Value-based management of customer capital involves the use of the conceptual framework of BSC in order to build processes of customer capital management as one of the components of intellectual capital in order to preserve and create value of the company.
You can find out more about the research being conducted at Zhytomyr Polytechnic State University and the Department of Accounting and Auditing here and here.
