Case | HBS Case Collection | February 2001 (Revised June 2002)

Customer Value Measurement at Nortel Networks--Optical Networks Division

by Das Narayandas

Abstract

Since 1995, Nortel Networks' Optical Networks (ON) division has been incorporating customer satisfaction and loyalty measures into its business practices to increase customer value. Over the years, key process owners in various parts of the organization have become accustomed to receiving such information in the format with which they are familiar. Recent initiatives by the Customer Value Measurement (CVM) team have shown that the current methodology does not provide all the insights required to achieve the full potential of customer value measurement. The CVM team now needs to present Nortel's senior management with the optimal combination of the many choices for soliciting customer perceptions that would make the best use of available resources, minimize the intrusion on customers' time, and add value for the business and customers alike.

Keywords: Business Divisions; Customer Focus and Relationships; Customer Satisfaction; Management Teams; Marketing Strategy; Value Creation; Telecommunications Industry;

Citation:

Narayandas, Das. "Customer Value Measurement at Nortel Networks--Optical Networks Division." Harvard Business School Case 501-050, February 2001. (Revised June 2002.)