 real value. The real value occurs when we take these numbers and populate them throughout the organization. Using the CVF for Segmentation The first place where CVF variables will be applied is in the calculation of segmentations. Almost every type of segmentation needs to include customer value in its appraisal. (Certainly the base, WAR, and targeting segmentation types do.) Once a corporate CVF has been generated, it can be used in the development of all of those segmentation schemes. This will guarantee that all schemes will consistently treat the customers based on value. Using the CVF to Populate Customer Touchpoint Systems Including CVF values in a segmentation scheme is only half of the benefit. The other half comes when we populate all of our customer touchpoint systems with the same index. Sales management, customer service, and credit appraisal systems all should use the CVF. In this case, it is used not as a number to be factored into a larger equation, but as a unique tag that identifies, for the person talking to the customer, the value and long-term potential of the customer to the company. Refreshing the CVF Just as the segmentation schemes, we have discussed, need to be updated and refreshed on a regular basis, SO too should the CVF. In fact, the refresh of the CVF definition and generation should be tied to the refresh cycles of the other segmentation schemes. This refresh should be performed at least once a year, and a case could be made for running it on a quarterly or monthly basis, as well. Chapter 14 CHAPTER 14 CUSTOMER CHURN INDEXES Timing is the single biggest problem facing the person wishing to manage customer relationships to prevent churn. Your competition could, at any time, offer better products, services, or prices to your customers, and there is no way you can prevent it. Your only option, to prevent this customer from leaving, is to find out as quickly as possible when better offers are being made by the competition and respond to these offers as quickly as possible. The customer