Customer Value Management Analysis
Added on 2020-09-03
13 Pages4740 Words55 Views
Customer Value Management
Table of ContentsINTRODUCTION...........................................................................................................................1LO1.............................................................................................................................................1a) Analyse various components that enable an organisation to calculate customer's lifetimevalue. (P1)...................................................................................................................................1b) Benefits of CLV(P2)...............................................................................................................2c) Factors affecting the CLV(P3)................................................................................................3d) Concept of the customer's lifetime value in B2B or B2C context. (M1)................................3LO2.............................................................................................................................................41) Different types of the market segmentation strategies.(P4)....................................................42) B2B and B2C decision making models(P5)...........................................................................53) Various segmentation models in B2C and B2B to generate key insight and marketingintelligence for customer value creation (M2)............................................................................6LO3.............................................................................................................................................6P6) Different techniques and methods that organization can apply to increase customer loyaltyand relationship...........................................................................................................................6Evaluation of techniques and methods of CLV(M3)..................................................................7D1 Key concept of customer lifetime and concepts of CLV......................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONCustomers are the blood and soul for the organisation and plays a very crucial role in thesuccess and sustainability of the company. The organisations have to look after the effectivemanagement of the requirements and demands of the customers to gain a very effectivesustainability and revenue generation. (Armstrong and et.al., 2015). The company we have takenfor the context is Home base, which works in the SMS based broadcasting. In this report, we willdiscuss the various components that helps the company to determine its lifetime customer valueand its benefits. Various factor that impact on the lifetime value is been discussed. Variousmarket segments are been considered and different types of business models are been focusedalong with different types of methods to increase customer relationship and loyalty (Beckers,Risselada and Verhoef, 2016).LO1a) Analyse various components that enable an organisation to calculate customer's lifetime value.(P1)Customers play a very crucial role in the value forming a company. The satisfied andloyal customer base will help the company to gain a better profitability and helps it to meet thetargeted goals. Thus, to maintain and sustain the customer is very necessary for a company. Thecustomer lifetime value is a standard that helps the company to measure its net profit from aparticular individual customers. It helps the company to determine the extant of the importanceof a customer in respect to the relation of the customer with the company (Chacour and Ulaga2015). It helps the company to identify its monetary resources and make a plan on its efficientspending of the money. The customer's Lifetime value or CLV is calculated by removing thecost of the providing a service to a customer from the profit gained from an individual customerof the company. It includes the amount of the expenditure that is been made on a customer incomparison of the revenue or benefit gained from him on a week, month or annual basis. Sometimes it helps to gain a better productivity by the company.In most of cases it leads the companyto avoid the expanses on the advertising process which may adversely affect the over allperformance of the company (Christopher, 2016). It helps the company to identify and adopt thesuitable measures to satisfy its old and new customers.Various ways to calculate the CLV for a company is 1
Average revenue per user: This helps the company to determine the average revenue ofthe customer per month and then multiply the value with 12 or 24 to get annual orbiannual CLV of Homebase (Di Benedetto and Kim, 2015).Cohort analysis: It includes the various factors of the changes that occurs in thecompany with the course of time. It helps the company to identify the changes in thecustomers requirements with the passage of time. It is deeply based on the factors likemarket changes, seasonality and customer's preferences. Individualized CLV: It helps the company to identify the total value created by anindividual customer through various channels, campaigns or other mediums such ascoupons etc. This may also include the social media and digital marketing which helpsthe company to identify the resources efficiently (Doligalski, 2014). This measures help in the better management of the different operations that helps in theimprovement of the efficiency and better customer satisfaction level that help in the rise in theirCLV in a better way for Home base.b) Benefits of CLV(P2)The approach of CLV lays a very deep and sustaining impact on the organisation likeHomebase. The process of CLV lays a very deep impact on the company and has many benefitsfor the betterment of the business functions of the company. The important benefits of the CLVis describesd below:Business assets: The CLV helps the Home base to provide the exact idea about totalassets that are been owned by the company in a very significant and detailed manner. Customer Segmentation: The CLV process helps the company like Homebase tosegregate and classify its different customers. It helps the company to identify itspermanent and potential customers (Flint, Blocker and Boutin Jr, 2011). This will help inthe rise of the better customer's satisfaction at Home base.Complaint management: The process of CLV helps the company to look after and sortout any sort of problem that is been faced by the company. This will make the home baseto immediately take the appropriate measures to solve the problem. Also, it will improvethe productivity of home base.Sustain the customers: This approach will help the company to retain and sustain itscustomers by taking the appropriate measures that will support company to achive the2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Customer Value Management: Homebaselg...
|10
|3292
|345
Customer Value Management Assignment - Homebase Companylg...
|11
|3823
|70
Customer Value Management - Assignmentlg...
|13
|2829
|43
Introduction to Customer Value Management : Assignmentlg...
|12
|4041
|438
Customer Value Management Componentslg...
|17
|5296
|101
Customer Value Management Assignment Helplg...
|14
|4156
|89