Customer Value Management in Home-Based Companies

This assignment provides an in-depth analysis of customer value management in home-based companies. It discusses the importance of customer value management, its key components, and how it can be implemented to increase sales and develop business. The assignment also explores the role of customer relationship management, brand equity, perceived product quality, and perceived price in influencing customer value and purchase intention.

CUSTOMER VALUE
MANAGEMENT

Table of Contents
INTRODUCTION....................................................................................................................... 1
a) Different components of enable an organisation to determine and calculate customer's
lifetime value ......................................................................................................................... 1
b) Explain and justify the benefits of customer lifetime value ...............................................2
c) Evaluate the factors of customer lifetime value .................................................................2
d) Concept of customer lifetime value and the use of collating customer data within specific
organisational B2C or B2B context......................................................................................... 3
1) Types of market segmentation strategies ...........................................................................4
2) B2C and B2B decision making models and opportunities for customer value creation.....5
3) Segmentation model of B2C and B2B and marketing intelligence for customer value
creation ................................................................................................................................... 5
TASK 3....................................................................................................................................... 6
1) Different techniques and method apply to increase customer relationship and customer
loyalty..................................................................................................................................... 6
2)Evaluate the techniques and methods applied at different stages of the consumer decision
making process and CLV........................................................................................................ 7
3)Provide evidence of critical evaluation and synthesis of key concepts of customer lifetime
value management in an organisation contest .........................................................................7
Conclusion .................................................................................................................................. 8
............................................................................................................................................... 8

·INTRODUCTION
Customer value management (CVM)is very important aspects for organisation where
marketing promotions, products and channels are transitory, company increase their value of
customer relationship because now days customers play a very vital role in generating profit of
any industry (Verhoef and Lemon, 2015). The objective of CVM identifying the profitable
consumer and reducing customers acquiring cost. It also includes this report HOME BASE
company manager using different types of components and providing the justification of
customer value lifetime. This file also giving the all the information different types of market
segments and BC2 or BCB decision making and value of consumers. This company have
adopted innovative client relationship management strategies to handle customer.
TASK 1
l壱a) Different components of enable an organisation to determine and calculate customer's
lifetime value
The most important components are customer relationships management, supports,
services, order marketing, strategy. It refers with customer value means every consumer are
different needs and wants no two or more client will place the same value on the product or
services. Home base company manager provide the customer service in effective manner, this
industry manager identifying the actual the need of people and giving a quality of product
(Nagaoka and et.al, 2016). The highest value of this firm product and services does not always
provide the highest customer value, since the benefits of each items calculate against cost.
Consumer increase their lifetime value through acquisition cost, repeat transaction and client
retention rate, customer lifetime value is the most essential part of marketing.
Home base manager focus on the channels that provide the best and profitable customer.
This company managing director main motive earn profit through trying maximise customer
lifetime value in their relation cost of acquisition. This firms directors also focus on retention
of marketing strategy means make a long term plan for growth of their industry as well as build-
up relationship between customers and their employees as well (Hassan and et.al, 2015). They
create more effective messaging, targeting, improve their behaviour with clients and also
improve output from consumer support. This organisation giving a special attention those
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valuable customer who help in generating their 80% revenue of their industry. Using customer
life value help to find out the top most valuable consumer will help their deciding what they
service provide and customer will also help to push their margin and making strong relationship
through better service.
l壱 b) Explain and justify the benefits of customer lifetime value
Customer lifetime value are very helpful for develop the optimal strategies for the client
engagement, create better understanding of potential value of a consumer and change the
workforce to improve the relationship with customer. Home base company manager is based on
the calculation of lifetime value and focus on organisation increasing their revenue .
·Better forecasting: Home based making a better plan for availability of their service by
predicting coming demand by their consumer (Keyte, B. and Locher, 2016). It helps to
managing proper investment in asset, manpower and inventory based on future need. This
organisation manager also helps in cutting down their productivity loss by leading sufficient
allocation of resources. It also include multiple products , prediction of purchasing chances for
each product can able efficient uses of resources translating into high profit.
·Retention and saving time: Home based company manager work on customer lifetime value
can go a long term and making a new program regarding reduction in attritions. This
organisation also focus on save time it refer with customer service means this industry manager
also focus on save their organisation time through giving a quality of service it is very important
for development of customer relationship and their trust on product services (Hassan and et.al,
2015).
·Customer lifetime value help to growing their business and making a effective plan for future
like how to save money through effective cost of their product and service. Home base company
manager also focus on making strategies their firm and running their work ling term and it also
concentrates on their customer. This organisation try to full fill clients need and growth of their
industry (Hassan and et.al, 2015).
· c) Evaluate the factors of customer lifetime value
There are several factors of customer lifetime value that effect future buying
performance. It includes method of recruitments, Home Base company using incentives or
discounts for raised their market share and attracted a various types of clients. This organisation
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manager focus on their existing customer because conversely the better new consumer will
always be those who introduce by a friend through promotions their product and they also
increasing their market share. It also includes medium refers with some channel of distribution
through media will help to giving a better information regarding their quality customer than
other. These are factors are very important and help to generating their profit and providing
quality services their client and proper knowledge their product as well (Hassan and et.al, 2015).
Home base firm also managed their work and consumer in work place and they also focus on
customer relation management is handle their work outside the company. They also work
offline and online for main motive to maintain customer relation and earning more profitable.
Home Base industry manager help to improve overall sales performance, it may also help
build and hold their consumer based on trust, loyalty and honesty. So this organisation provide
their product based on full of honesty and providing accurate information about the product,
their selling patterns and common trends (Weinstein, and Pohlman, 2015). This company
manager also discuss with their employees about recent trends in their market such as decrease
in a particular goods and services and help to make constructive advice about how can work
together in rebuilding the purchase rate.
l壱d) Concept of customer lifetime value and the use of collating customer data within specific
organisational B2C or B2B context
Customer lifetime value is the present value of the coming cash flow or value of entire
business attributed to the consumer making relationship during that time when providing
effective product and services (Weinstein and Pohlman, 2015). Home Base company contributes
their business over the all lifetime their customer services. It is very curial and used while
making most important decision about their product development, customer support, marketing
and sales. This firm applying lifetime value in marketing and this organisation manager can
easily make value associated with their long time relations with any client. It is hard to predict
like how long each relationship will end, but this industry marketing manager make a better idea
how to maintain long term relation with their consumers.
B2B model : this is very important model it help in making effective decision regarding long
term decision in organisation. Home Base organisation make their business use this model it is
Business - to- Business market are unique compare to customer market in two types. First is B2B
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it is very complex in decision making process. This model are related organisation as well
personal level means this model decision maker are accountable for their opinion have complex
needs compared to their client buyers (Hassan and et.al, 2015).
B2C model : it refers with the business to consumer and this model help to providing the quality
product, quantity and help to generating the profit of Home Base organisation. This model
directly deal with customer and this company also follow this method, they directly deal with
their consumer (Weinstein, and Pohlman, 2015). This model is the most popular and help to
increase their business sales. It also helps maintain good relation with their clients.
TASK 2
l壱 1) Types of market segmentation strategies
Market segmentation is consisted with the oldest market tricks and the aim of
segmentation fulfil their individuals needs, customer services, product quality. Marketing
segmentation is also very effective to searching their clients and providing a services' variety of
ways (Pearson, 2016). Market segment help to earn profit and also reach potential of consumer
through marketing activities. Home Base company manager also use market segmentation
strategies in different way for development their industry and also giving competitive options.
This firm also making marketing plan through segmentation and identifying customer needs,
want and demand.
·Behavioural segmentation: Home Base company dividing their population on the basis of
their behaviour, and decision making activity. This type of market segmentation is in prosperity
their product in market (Hassan, R. S. and et.al., 2015). . For example this company sells their
product like kitchen items or home based product most of the people prefer these products at
possible prices. This company increasing their sales special occasion like Christmas offering
their product less price these are the buying behavioural pattern will completely different rather
than normal days.
·Demographic segmentation: it is very simplest and large type of market segmentation used.
Home Base company almost use it to get the right population in using their product and services.
Segmentation usually dividing a population based on variables (Lee, and et.al, 2017). It shows
the own variables such as gender, family size, occupation level, age, religion and nationally.
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This firm also use own variables and main motive to dividing their population according to
different age group of peoples, gender.
·2) B2C and B2B decision making models and opportunities for customer value creation
These are the two forms of commercialized transaction and refers with business to
consumer it is the process of selling goods and services directly to customers. B2B it is related
with business- to business, it is the process for selling product or services to other business
enterprise. It is the system of business that support these model transaction, sales administration
scope, sales, communication and cost , so it is important aspect that implement and right system
for client.
·B2C decision making model: Home Based company also use this model for establishing the
trust of their customer and they also sells their product directly consumer and direct deal with
them (Hakim and Susanti, 2017). Through this model company increase their purchasing power
and making a better decision for long term growth of their business. According to this model
customer select their own choice products and pay for them at the point of sales using different
types of payment such as their credit card, debit card or cash.
·B2B making model: Home based organisation is also used this model for making effective
decision it is related with business to business with similar websites. This model transactions
normally require a more complex in businesses enterprise (Keyte, and Locher, 2016). This firm
system is capable for accepting the order in different formats such as documents, electronic
orders or email . This industry use these models for earning more profit and it is very help full
for making long term decision.
·3) Segmentation model of B2C and B2B and marketing intelligence for customer value
creation
B2C is divided into various parts it is very important for analysis customer need and
want. Home Based organisation manger is also use four approaches for maintain customer
relationship management.
·Geographic segmentation: it is related group of customer in geographical location. Home
Base company focus on their product and services offer to different segments . based on where
they are situated (Bettis and et.al, 2016). It is very helpful for this organisation save their time
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and money. It helps to increase their sales and it is not focus only particular location all over the
area cover thorough using this segmentation.
·Demographic segmentation: it refers with different age group, gender, religion, occupation,
income and martial status. Home Base company also dividing their customer precipitation
according their demand and different size group of age, eduction and income level. This
company use this segmentation for gaining income in according client preferences. It selects
people on the bases of their income and age. Currently Home base firm targets medium income
class people those who can afford its products easily. It is important for providing better service
as per client demand, organisation main motive to earn profit according to customer wants.
·Behavioural segmentation: this is very important approach it divides customer based on
attributes such as brand loyalty, social media interaction, purchasing patterns and awareness.
Home based company also try to build their trust such as providing quality product through
effective manner (Yang and et.al, 2016). This firm also implement customer segmentation
analysis tools for increasing their sale and demand their product and this industry also
established their trust on clients and they providing best services in the market.
B2B segmentation it is totally bases on customer in any manner that adjust with its goals
and objective, it also includes some important approaches.
·Need based segmentation: it is related with group of consumer based on validated needs for
product or services (Verhoef and et.al, 2015). Home Base organisation also use this approaches
for providing efficient services their customer and they also identifying the need and want of the
clients through this segmentation.
·Value based segmentation: it is also dividing consumer based on economic value, Home
Based organisation show their present sales and potential sales through using this approach
(Verhoef and et.al, 2015). It is very easy for sales and identifying the sale people and spend lot
of time on high value of their client.
·TASK 3
·1) Different techniques and method apply to increase customer relationship and customer
loyalty
Today customers' loyalty is very important aspect in businesses, without effective
services' no any one run their long term organisation businesses. So it is necessary to build a
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relationship between target customer as well as existing consumer (Pearson, 2016).Home based
company manager is also maintaining their relations with client through providing quality of
product and giving a correct information about their product services and they also established
the trust and loyalty their old customer through. They also use some techniques and method for
increasing the customer relationship and build their loyalty.
·Target based resource allocation: Home Based industry main motive to earn profit and
maintain their trust so they use analytical tools in their CRM. They provide their employees
some target their business profit comes from total customer (Nagaoka, H. and et.al., 2016). .
This company use their resource in proper manner and giving the best service to their client.
·Collect and store personal information: it refers with the understanding of consumer as an
individual and this understanding help in long run businesses and it also includes customer
personnel details like birthday date, social media accounts. In other words CRM is used for not
only storing sales records it also involves contact details of any clients. It is very necessary for
lobg run businesses through this concept this company maintain their relationship with clients.
·2)Evaluate the techniques and methods applied at different stages of the consumer decision
making process and CLV
Market segmentation is the process of dividing their business in different area and it
refers to the consumers also, it includes various techniques and method like B2B or B2C. It
assumes the different segment requires such as prices, offer, promotions, distribution channels
and some unique combination marketing variables. Positioning is the method of marketing
planing objective (Shamim, and Albinsson, 2016). Market set different target their product and
service. Home Based company also used different stage like promotion their product, effective
services and channel distribution. These are different stage while consumer take decision which
product is giving better services do al this thing depend on client purchasing power as well as
their need.
l壱3)Provide evidence of critical evaluation and synthesis of key concepts of customer lifetime
value management in an organisation contest
Customer lifetime value management is very important concept and it is providing the
lifetime business through the support of their customer and firm also increasing their profit when
they provide effective service and maintain customer relationship. The main motive of Home
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Based organisation gathering relent information in the market and try to fulfil their client needs.
The stage of value management customer, supports drives retention, loyalty (Tantalo and Priem,
2016). These are the stages which help to maintain their long relations with their consumer and
increasing purchasing power their customer. This industry takes these step for established their
trust, loyalty after acquire and supporting new target clients. They focus on fostering their
consumer rent ions and advocacy.
·CONCLUSION
It can be concluded that important components related customer value management it
also added consume perception and Home Based company also handle all the customer vale
management and this firm main motive to increasing their sale and development their business.
This company also fulfil their customer demand and providing the best quality of product.
l壱
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l壱REFERENCES
Books and Journals
Bettis, R. A. and et.al., 2016. Creating repeatable cumulative knowledge in strategic
management. Strategic Management Journal. 37(2). pp.257-261.
Hakim, L. and Susanti, N., 2017. Influence of Customer Relationship Management, Brand
Equity, Perceived Product Quality, Perceived Price on Customer Value and Purchase
Intention (Studies Philips Light Bulb in Batam). International Journal of Economics and
Finance. 9(7). pp.122.
Hassan, R. S. and et.al., 2015. Effect of customer relationship management on customer
satisfaction. Procedia Economics and Finance. 23. pp.563-567.
Keyte, B. and Locher, D. A., 2016. The complete lean enterprise: Value stream mapping for
administrative and office processes. Productivity Press.
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Nagaoka, H. and et.al., 2016. Development of Methods for Visualizing Customer Value in Terms
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Tantalo, C. and Priem, R. L., 2016. Value creation through stakeholder synergy. Strategic
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Yang, H. C. and et.al., 2016. Exploring customer value of innovation achievement: ism and anp
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