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Value Above Cost: Driving Superior Financial Performance with CVA by Ph.D Donald E. Sexton

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2. How CVA® Affects Financial Performance

CVA®, or Customer Value Added, has a direct and clear relationship to the financial performance of any business. This relationship is based on marketing concepts and economic ideas coupled with accounting and financial methodologies. In this chapter, the relationship between CVA® and financial performance is explored and explained.

CVA® and Financial Performance: Executive Summary

The linkage between CVA® and financial performance is straightforward and involves several steps (Exhibit 2.1).

Exhibit 2.1 The relationship of marketing efforts to contribution

Reprinted with permission from “How Marketing Affects Shareholder Value,” The Arrow Group, Ltd.®, New York, NY, 2008.

1.   Marketing ...

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