Enhancing Consumer Relationships through Operational Techniques

The assignment explores the importance of operational techniques in enhancing consumer relationships. It discusses the need for businesses to create personal information databases, manage resources effectively, and respond quickly to customer complaints. The analysis aims to help Marks and Spencer improve its long-term customer relationship by implementing these techniques.

Customer Value
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Ascertaining the components which determines the consumer's lifetime value....................3
P2 Analysing the fruitfulness of Consumer's life value to organisation.....................................3
P3 Identifying elements which influence the consumer's lifetime value....................................4
P4 Application of market segmentation policy which will be helpful in enhancing the
consumer gathering.....................................................................................................................4
P5 Identify the B2C and B2B decision making models which will help in providing the
opportunities for customer value creation...................................................................................7
P6 Application of various techniques and methods which will enhance the consumer
relationship..................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The consumer's lifetime value is the technique which is being used by the organisation as
to ascertain the future net profits and gains which will be gained by the business. In the present
study the discussion is based over the elements, factors and components which affect the
consumer lifetime value. The study will help Marks and Spencer in promoting the favourable
consumer relationship as well as loyalty. Moreover, the managerial professionals will be
suggested various techniques and methods on which they will maintain the buyer's relationship
and retain them to have the long terms probability
P1 Ascertaining the components which determines the consumer's lifetime value
In relation with measuring the consumer's lifetime value there are two techniques which
will be helpful in determining it.
Historical CLV:
There has been influence of various methodologies in terms with analysing CLV value.
Thus, some of them present that it will be derived from the direct purchases made by the
consumers. However, the analysis will be based on making the estimation over the past
transactions made by costumers in relation with purchasing the products in the organisation.
There will be several issues indulged with this technique as all the consumers has different level
of earning and spending as well as there has been variations in their preferences which will have
impacts over the revenue gathering of business (King, Dhameeth and Kim, 2017). Marks and
Spencer will implicate this technique which will be profitable in analysing the purchaser
behaviours and estimation of the costs.
Predictive Customer Lifetime Value:
The method stated that there will be proper analysis over the CLV value as per the
consumer's purchasing behaviour (Castéran, Meyer-Waarden and Reinartz, 2017). Moreover,
this technique implies that the expected revenue will be gathered by the firm in relation with
meeting the consumer expectations. Thus, it can be understand as follows:
P2 Analysing the fruitfulness of Consumer's life value to organisation
To determines the CLV value will be helpful to the entity in relation with making the
effective business operations. Thus, it helps in determining the buying behaviour of consumers

and which will be used in decision making process. Therefore, the managerial professionals will
determine the adequate changes in the operations as well as the necessary action which aware to
be taken as to meet the satisfactory level of consumers (Qi, Zhou and Li, 2017). The importance
of CLV in Marks and Spencer will be as follows:
 There will be increment in the favourable balance of revenue as well as the capital
structure which in turn managing the operational needs of the business.
 There will be growth in the efficiency as well as liquidity of the business that will
strength the business to meet the short term and long term liabilities.
 It will bring reforms in the operational activities as the business will realise the
requirements of buyers and they make efforts accordingly.
 The designing the products and services will be on the basis of preferences of consumers
for the specific article.
 It benefits in making the effective consumer relation as well as rise in the market value of
the firm.
P3 Identifying elements which influence the consumer's lifetime value
The factors which has the maximum influence in the consumer decision making which
will be based on consumer behaviours and various external factors which distracts and make
changes in their decisions (Lew, 2017). Moreover, there have been existence of various rivalry
firms which are affecting the decision of consumers as well as they attract the buyers to their
substitute product which will be convenient on cost point of view. Similarly, there have been
changes in the opinion, learning capacity and understanding towards the products and services. It
has the major impacts over the purchasing decision of buyers.
P4 Application of market segmentation policy which will be helpful in enhancing the consumer
gathering
In relation with developing the favourable relationship with the consumers it is
essentially required that the business must have implication of various policies and procedure
which will enhance the operational efficiency of Marks and Spencer. Therefore, there are five
techniques which are need to be implicate by the business as to have the profitable gains such as:
Develop the long term relationship:

In order to boost up the CLV value of the organisation there will be implication of the
plans which will engage the consumer on the long term basis (Lin and et.al., 2017). Therefore, it
will be through building the favourable relationship with the buyers which will retain them for
the long period. However, there will be three most effective and beneficial advices to Marks and
Spencer which will help in managing the long term relationship such as:
 The dealer or seller need to be honest while making the transactions among the
consumers they have to be clear towards what there are selling and the costs of such
products and services. Therefore, it will create the positive image in the buyer's mind and
they will have positive opinion towards the firm (Wu, Law and Liu, 2018).
 The representation of the products and services must be clear and all the relevant
information regarding the articles need to be share among consumers. Thus, it will help in
increasing their knowledge regarding the products thy are consuming as well as it has the
positive impacts over buying decision.
 The seller need to create the strategic partnership with the buyers which will be helpful in
building the trust among them as well as it will be helpful in acquiring their products and
using their services.
Developing brand loyalty:
Currently, it has become essential for every industry or corporation that they will create a
brand image in the market. However, with the help of such technique the managerial professional
will develop the products which meet the consumers desired level (King, Dhameeth and Kim,
2017). In relation with that, the professionals need to consider several things such as managing
the quality of products ans services, maintain the favourable costs over such products as well as
have soothing relationship with buyers. This technique will bring operational reforms in Marks
and Spencer.
Bring the up-sell and cross-sell:
This is the technique which will have promptness in booting up the CLV value. Here the
professionals determines that they will need to increase the costs of an article but they won;'t
made it specifically. They can use the technique such as analysing the average costs of the
product and make the increment, but the method up-sell and cross sell will have the accurate

framework. In this method there will be increment in the prices but here the seller sales more
than 2 or 3 products in a combo pack (Castéran, Meyer-Waarden and Reinartz, 2017). Thus, that
will be helpful in increasing the prices over such good as well as there will be sell of various
other products which has fewer selling. Moreover, here the consumers will feel satisfied as they
are having the group of products at a convenient price.
Determination of the accurate rewards and incentives:
In relation with creating a favourable relationship among the consumer, the business
need to have accurate incentive and rewards plans for the consumers. On which they have to
make a membership cards and add points over each purchase. Therefore, it will provoke the
consumers in having the appropriate discount as they reach the target points as well as it will also
help in enhancing the sales of the organisation (Qi, Zhou and Li, 2017). Thus, if Marks and
Spencer will have appropriate CLV as if they will manage the accurate records of each
consumers and their generated rewards and incentives. However, there will be various techniques
which will help in enhancing the relationship among the consumers and the business such as:
 There will be use of gift such as on the events like national events, Christmas, new year
etc. It will bring the boost in the sales as well as increment in the profitability of the
business.
 The rewards must be attainable and achievable which will be beneficial in enhancing the
high value customers. Thus, it will provide the competitive and equitable value to the
organisations (Lew, 2017).
 There is need to choose the complimentary technique in terms of deciding the rewards to
the consumers over the level of spending they have made in the organisation.
Delivery quality consumer services:
It will be effective for the consumers as they have the superior consumers care services.
Thus, it will have the positive impacts over the decision making and analysing the growth of the
business (Lin and et.al., 2017). They will feel satisfied as all the information which were relevant
with their products and services will be delivered to them and they will feel satisfied in dealing
with the organisation. Marks and Spencer will be helpful in building the strong consumers'
relation which will remain last long.

P5 Identify the B2C and B2B decision making models which will help in providing the
opportunities for customer value creation
To create a long term relationship with the consumers there are various techniques which
will be helpful in creating the effective brand image in the market. Therefore, there will be use of
such techniques which will enhance the operations of the business (Wu, Law and Liu, 2018).
There will be use of industrial methods which will be helpful in monitoring and managing the
CLV for Marks and Spencer. Thus, the implication of the terms such as B2B and B2C which will
be effective and accurate in managing the business operations. Thus, it will bring the effective
communication and smooth relationship among the professionals. It will have positive
influences in the organisational practices such as:
Increase the purchasing process:
There will be favourable increment in the purchasing process of the business. Thus, it
creates the adequate trading of the products in between organisations as well as in between
consumers. Thus, there will be implication of various individual in the organisation such as
decision making group, technical staff, financial analyst and various operational departments
heads (Differences Between B2C & B2B in Business Systems, 2012). Therefore, the implication
of such techniques will be helpful in creating the bull in the purchasing power. Thus, as the rise
in the consumer requirement as well as there will be rise in the production of such goods.
Quick payments:
This technique will be helpful in developing the digital transformation in the
organisation. Thus, there will be payments of the dealt products and services on the basis of
online transactions. Therefore, the level of accounts receivables and payables will be reduced
and managed by the firm (King, Dhameeth and Kim, 2017). The technique B2B and B2C will
have positive impacts over the business activities of Marks and Spencer.
Advanced E-commerce:
This will be beneficial in terms of promoting the e-commerce activities in the business.
Therefore, there will be adequate increment in the profitable as well as growth of entity in the
wider level (Qi, Zhou and Li, 2017). The consumers can place order from anywhere at anytime.
It will be more convenient for the firm to in having increment of the sales. They will become

able to serve the large numbers of consumers in the business as well as thy will have enough
funds for the future operations. Marks and Spencer will have effective online business as they
manage and execute the website based transactions.
Develop the communication channel:
In relation with the B2B B2C terms the business have wider network and the connection
with various companies and consumers the will have effective business operations with the
various parties and that will be helpful for them in making the contact with the appropriate
suppliers and dealers for the specific materials (Lew, 2017).
P6 Application of various techniques and methods which will enhance the consumer relationship
In Order to improve the consumers' relationship there will be need to have the effective
business operations as well as strategic technique. Thus, there will be need to focus over the
operational aspects of the business such as deciding the adequate prices over the goods and
services. Therefore, there are several techniques which will be helpful in creating good and long
term relationship with the consumers such as:
 There will be need of creating and storing the personal information about the consumers
such as their birthdays, anniversaries and such kinds of special events. However, it will
be beneficial for making the adequate increment in the profitability as well as revenue
generation of the business (Wu, Law and Liu, 2018).
 There is need to manage the resources such as availability of funds, material and
employees that will have influence in the profitability of the business.
 The business is need to be ultra quick in responding consumer complaints which will give
the promptness in the operations.
CONCLUSION
The above listed study helps in determining the adequate use of various techniques which
enhance the consumers and business relationship. However, it will be helpful to them in
determining the operational activities as well as make the essential changes in the business
activities The analysis will be helpful to Marks and Spencer as to have appropriate consumers'
relationship for the long term basis. The implication of CLV technique will have positive
impacts over the revenue generation as well as increment in the communication channel.

REFERENCES
Books and Journals
Castéran, H., Meyer-Waarden, L. and Reinartz, W., 2017. Modeling Customer Lifetime Value,
Retention, and Churn. In Handbook of Market Research (pp. 1-33). Springer International
Publishing.
King, D. M., Dhameeth, G. S. and Kim, J. S., 2017. Modeling Moderating Effects of Customer
Lifetime Value (CLV) and Referral Value (CRV) on Customer Service of Frontline
Employees for Customer and Organizational Satisfaction: A Comparative Analysis.
Lew, G., 2017. The importance of customer lifetime value in determining their profitability. The
Business & Management Review. 8(4). p.24.
Lin, H. H. and et.al., 2017. Predicting customer lifetime value for hypermarket private label
products. Journal of Business Economics and Management. 18(4). pp.619-635.
Qi, J., Zhou, Y. and Li, J., 2017. Measuring Customer Lifetime Value in a Semi-Contractual
Transaction Setting with Artificially Truncated Duration.
Wu, J., Law, R. and Liu, J., 2018. Co-creating value with customers: a study of mobile hotel
bookings in China. International Journal of Contemporary Hospitality Management, (just-
accepted), pp.00-00.
Online
Differences Between B2C & B2B in Business Systems. 2012. [Online]. Available
through :<http://smallbusiness.chron.com/differences-between-b2c-b2b-business-systems-
39922.html>.