Developing a profitable customer base is proving difficult because of the growing nature of marketing complexity and a major power shift to customers.The weakness of most commonly employed probe techniques like surveys and focus groups is that data is attainable only through the active collaboration of the respondent resulting in up to 90 per cent of relevant data being missed out.
As a result problems such as skewed loyalty and unsuccessful product launches emerge at a great cost. what needs to be realized is the emerging of market insight with action and strategy.
Brand vitality assessment
This metric is easily applied where the conceptual focus shifts from the company to the customer with the understanding that even financial statements are incomplete without a measurement of the likelihood of the company maintaining closer ties with its customers over time.
This BVA approach has been adopted by many,leading to numerous positive scores.for instance: US based Lucent technologies saw a sharp reduction in capital expenditures by the key telephone service bloc in the early 2000's.