 OUR TAKE -
The Face and Form of Value
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Many readers defended the position that transaction myopia shouldn't categorically be considered evil or wrong. One reader wrote:
"It's worth noting that the transactional approach is the right thing to do in an expanding market when the category is new and the world needs your product. Transaction orientation yields to customer lifetime value and other measurements of maximizing transactions per customer when markets get older. Geoffrey Moore calls this the transition from exponential growth a.k.a. the Tornado to Main Street."
Indeed, the transaction is often the measure. It is how we keep score. It is the basis for the existence - transactions beget revenue which hopefully begets profits which begets more investment. Prudent investments can create value, and to close the circle, value begets transactions. The comment last week that executives have transaction myopia because the customer has transaction myopia prompted many CRMAdvocate readers to remind us of the importance of creating value. Indeed, it is an important link in the chain.
As we talk about the form and face of the customer, it is important to ask one more question. What face and form does "value" takes in your organization? What's your take?
Gary Lemke, Publisher
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