# Customer Value Management Assignment

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Customer Value Management
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Components that enable determination & calculation of customer's lifetime value..............1P2 Benefits of Customer Lifetime Value....................................................................................2P3 Factors that affect customer lifetime value............................................................................4TASK 2............................................................................................................................................5P4 Types of Market Segmentation Strategies applied to customer base....................................5P5 B2B and B2C models of decision making and opportunities value creation can be applied6TASK 3............................................................................................................................................8P6 Different techniques and methods can apply to increase customer relationship and loyalty8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
Mathematical formula: Many professionals are using formula so that they will determineCLV. With aid of this, adequate value will be found out which support manager to intojudgement making procedure. Formula will comprise many components, such as customer'snumber, profits. Formula: Total profit/ number of months since client joinedThrough this, average revenue will be identified which is developed through purchaser. Someother formula will also be utilized:CLV: ((T*AOV) AGM) ALThere, T: Average monthly transactionsAOV: average order valueALT: average customer lifetime (in months)Details:Here, R: Monthly retention rateD: Monthly discount rateCohort analysis: It is a team examination of individuals who are sharing similar type ofcharacteristics. People who include into this sector are evaluated in same manner. Majorbenefit of using this tool is that this consumes less time and a single person can beexamined in similar time. Additional, deviations will be much common which willprovide impact to CLV (Kerzner and Kerzner, 2017).Individualized CLV: If company wants to acquire accurate measure then, this methodwill be used by them; because it concentrates on each person's behaviour as well asattitude. For this, an enterprise will use both kind of data, i.e. past and present. With helpof this, manager will formulate an effective presentation.P2 Benefits of Customer Lifetime ValueIn modern era, there are many companies who are paying lots of attention todetermination of CLV. When examination is done and firm acquires positive outcome thenusefulness of this factor will easily understand by them and after that they use this technique intooperational exercise. As a result, reputation, market share and in addition profits of firm easily2

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