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Customer Value Management - PDF

   

Added on  2020-10-05

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Customer ValueManagement

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Different components that help an enterprise to analyse and determine a customer'slifetime value...............................................................................................................................1P2 Benefits of customer lifetime value to a company.................................................................2P3 Elements that affect the customer lifetime value...................................................................4TASK 2............................................................................................................................................5P4 Various types of market segmentation strategies...................................................................5P5 B2B and B2C decision making models and opportunities for customers value creation......6TASK 3 ...........................................................................................................................................7P6 Different methods and techniques that can be apply by firm yo increase customer loyaltyand relationship...........................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONCustomer value management help organisations in ascertain what drives value forconsumers, help in measure the firm's performance as compare to the competition exist inmarket, focus more on scare resources, combine efforts and support in create a competitive edgefor entity (Kotler, 2017). Mainly this concept is related with asking customers that what theysearch when make a purchase decision, determine how customers rate the value offer by firm, ascompare to the value offer by its rivals. Analysis of customer's lifetime value support manager intake better and reliable decision. Homebase firm is consider in present report for study. Differentcomponents that support firm in ascertain customer's lifetime value and major benefits of CLV toa business entity is all given in this. Further, factors that affect the customer lifetime value andmajor strategies which can be use for market segmentation is also mentioned in this. TASK 1P1 Different components that help an enterprise to analyse and determine a customer's lifetimevalueValue is known as the perceived worth to the consumer of a specific service or good.Today every enterprise wish to deliver customer value because this help in retain customers for along time period and at the same time help in attract more customers. In order to achieve this, itis very important for every department of entity to play its role in deliver customer value(Verhoef and Lemon, 2013). Create and maintain good relations with customers also play asignificant role in deliver customer's value. Homebase is a broadcasting enterprise that provideSMS services to large number of customers. Numerous efforts are done by firm to provide betterservices to its clients in order to attain their loyalty. With this, entity can capture a larger marketshare and can increase its income. Entities use the concept of customer lifetime value in order tomaintain good relations with consumers and to ascertain value. Customer's lifetime value requireto be explain as periodic value that declared that the estimated 12 months relationship withcustomers and its value will be £ x. This offer a opportunity to organisation to keep consumersfor a long time which ensure long term survival of firm in market (McColl-Kennedy and et. al.,2012). Major aim of entities behind this is to retain customers for long time as this help ingenerate large amount of profit. Main components that can be use by Homebase to determineCLV are as follows:1

Present value: This is one of the most significant element as this indicate the perceptionof consumers towards services and products offer by business firm. A discounted value isindicated in this, which present the cash flow get by the consumers. Time value of moneyis also cover in this that support in keep consumers for long time. A periodic value isinclude in this. Mathematical formula: Under this, experts view CLV as a monetary value and differentmathematical techniques and methods are use to ascertain the value. A formula is used inthis under which total revenue of organisation is divided by the number of months sinceconsumers join the firm (Flint and Woodruff, 2014). This help in determine the averageprofit of entity generated by customers. Company do various efforts in order to influencethe behaviour of consumers to increase the sale of company's good. One of the mainbenefit of this is that it increase the profits. This is very effective components as thisprovide basis to analyse the customer relationship value and also indicate ways to bettersatisfy the needs of consumers. Customer's loyalty: This is one of the factor that largely affect the success and growth ofentity. It help entity in generate large amount of profits and ensure its long term survival.Customer loyalty directly increase CLV and provide competitive benefit to firm as well. Individualised CLV: Various basis are there to determine CLV and when firm analyse iton a wide basis then it does not get much as compare to when entity examine the same onindividual basis.Cohort analysis: Cohort refers to group of individuals who share some same features. Itindicate different situations that impact on CLV and help in create good relations withcustomer. All these are the main element that support organisation to offer its products to millioncustomers. This increase profits and at the same time help in maintain a competitive position inmarket. P2 Benefits of customer lifetime value to a companyUndertake research to examine the customer lifetime is known as one of the mostimportant function of every organisation (Kumar and Reinartz, 2018). One of the main reasonbehind this is that it help manager in develop effective strategies, provide direction to workers tooffer more value to the customers and also help in create good relations with them. For enhance2

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