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Customer Value Management Customer Value Management

   

Added on  2020-10-23

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Customer ValueManagement
Customer Value Management Customer Value Management_1

Table of ContentsCustomer Value Management ....................................................................................................1INTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Various components to determine and calculate customer's lifetime value..........................1P2 Benefits of customer lifetime value to an organisation.........................................................3P3 Factors that influence the customer lifetime value................................................................4TASK 2............................................................................................................................................6P4 Types of market segmentation which can be applied to customer base................................6P5 B2B and B2C decision making models and opportunities for customer value creation.......7TASK 3............................................................................................................................................8P6 Different techniques and methods to increase customer relationship and loyalty.................8CONCLUSION ...............................................................................................................................9
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INTRODUCTIONCustomer value is concept which defines that executive require to use appropriatemethods and techniques to examine and measure opinions and views of clients. Managementrequire to have skilled and competent members which help organisation deliver quality items andservices in market in according to needs and wants of people. This helps superior to constructcompetitive advantage and position firm higher than rival brands. Present report is based onHomebase which is popular retail store established in United Kingdom. It is a retail store whichprovide different variety of items that is kitchen, bathroom, gardening, outdoor living, DIY tools,paint and décor. This assignment specifies information about different components that are usedby management to ascertain CLV (Hammer, 2015). Apart from this, superiors even require toacknowledge benefits of customer value management concept and factors that might impact onsystem functionality. There are various types of market segmentation used by superiors toenhance customer base. Along this, various methods and techniques are used by seniors toestablish relations with clients and make them loyal. TASK 1P1 Various components to determine and calculate customer's lifetime valueManagement construct relations with clients which help companies to enhance marketposition and generate adequate profit from business. It is essential that superior have adequatefunds, material and manpower which help firm deliver appropriate items and services in market.Administration even need to implement adequate tools and techniques in system which helpthem to provide things in according to needs and wants of people (Hollensen, S., 2015). Alongthis, training and development programs that is sessions, meeting and conferences are executedby superiors to enhance skills and abilities of members; thereby make them perform activitieseffectively. This benefits Homebase to enhance market position and reputation by providingquality products to consumers. This advantage firm to satisfy buyers and construct customerloyal towards firm. Thus, these are various elements that are considered by management to buildconsumer's value for lifetime are defined beneath: Cohort analysis: It is one of element which determine that administration require to haveappropriate information about needs and wants of people. They need to acknowledge group ofindividuals which have similar characteristics, features and traits. This help manager of1
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Homebase to have complete data about various market situations and their influence on customerlifetime value. Hence, it is necessary that company develop and maintain good relationship withclients by providing them quality things and in respect to their demands. Personalised CLV: This tactic define that management use various mathematicalformulas and expressions to have information about customer lifetime value. Homebase which isretail firm require to implement adequate tools and techniques in system which benefit superiorsdeliver items and services in according to demands and requirements of people. Present Value: This component determine that administration require to have accurateand complete information about buyers point of view in respect to items and services. It isessential that firms acknowledge discounted value and present cash flows that are ascertained byHomebase from customers. This help company to acquire data about time value of money whichhelp management to retain clients for longer period. Customer Loyalty: It is another element which determine customer lifetime valuebenefits on organisation. Management responsibility is to use adequate tools and techniques insystem which help them to deliver quality items and services to people. Homebase have buyerswhich are loyal towards firm which advantage executive to enhance market image and reputation(Kerzner and Kerzner, 2017) This also helps company to position higher than rivals byestablishing competitive advantage. Customer service: This is component which define that after sales service is provided byHomebase to satisfy people. This benefits company to enhance market position and constructconsumers loyal towards firm. Sales promotion: Coupons, rebate, discounts, offers are various tools that are providedby management of Homebase to retain customers for longer time and give them alternative tovisit store again and again. Mathematical formula: Administration require to use appropriate quantitative tools toget appropriate information about customer's life time value. It is necessary that adequatenumerical formulas and mathematical expressions are used by manager of Homebase. This helpthem to have complete information about profitability of firm; thereby make adequate decisionsand select alternatives which are beneficial for company. Firm has finance department whoseduties is to record expenses and income to acknowledge amount of funds available in respect toorganise business operations effectively. For example, Company have 200 customers which help2
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