We are obsessed with something we call Customer Business Value or CBV, a measure of value added to our customer’s lives.
If revenue is the dollar value a company receives from a customer, CBV is the dollar value of goods and services received by the customer, often considerably higher than the ticket price of the product or service. CBV could refer to the value of loans outstanding, working capital, transaction value, gross merchandise value, insurance coverage, value of assets being leased and so on.
Increasing CBV is not about increases in prices, but about customer loyalty, and thoughtfully expanding the portfolio of offerings to provide solutions that drive resilience and vibrancy for a growing and loyal customer base.
And we believe a high CBV can lead to a high ROE, and so working CBV into ROE we get RO(m)E, a metric that focuses on underserved customers, and demonstrates a correlation between business performance, and impact.
For Elevar, it means that we’ve identified a company with twin business and customer impact flywheels that deliver enduring momentum. Let’s get deeper into flywheels.
