(solved) Customer Value Management Homebase
Added on 2020-10-22
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CUSTOMER VALUEMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Various components that calculate the customer's lifetime value:....................................1P3 Factor that influence customers lifetime value:................................................................4TASK 2............................................................................................................................................5P4 Marketing segmentation strategies that can be applied to customer base:........................5P5 B2B and B2C decision making model defines the opportunities for customer valuecreation ..................................................................................................................................7TASK 3............................................................................................................................................9P6 Different techniques and methods that organisation applied to increase the customerrelationship and loyalty of customers.....................................................................................9CONCLUSION .............................................................................................................................10REFERENCES .............................................................................................................................11
INTRODUCTIONCustomer value management is the process to increase customer’s value individually. Itdefines how the organisation work and communicate with customers. The customer valuemanagement is defined as how to increase their customers and how to communicate with them.Homebase company provide service through emails and SMS they increase the highestcustomers and more than attract with SMS according to emails and other communicationsprocedures. It report includes various components that determine the calculations of customersvalue management and benefits as well as factors that influence the customer's lifetime value(Christopher, 2016.). It also includes the B2B and B2C decision making model plus defines theopportunities and demonstrates the possibility of customers value creation and techniques andmethods that increase customers relationship.TASK 1P1 Various components that calculate the customer's lifetime value:Customer lifetime value is the most important metric to understand our customers. Ithelps to make important business decisions about the marketing, products, development aboutthe sales and customers support. In marketing, CLV helps to understand the needs of customers.In products, CLV help to define what service or product offers to customers. Customers supportdefines how the organisation retains customers. And sales determine what kind of customersneed to acquire. When calculates the customer's lifetime value, there are many numrious toconsider on the specific equations for the answers. Most straightforward way to calculate CLV totake revenue and earn form customers and subtracts the money spent and serving them. Tocalculates the CLV time periods each of these serves different purpose. CLV is the mostpowerful to understand what customers worth to you now. Homebase organisation mainlycalculates their customers sales. Company mainly communicate with their customers via emailsand SMS and their profit depends on their communication with the customers.Components of customer's life value- Mainly, Homebase is home improvement companythat provide services customers to home decorates, outdoor living, garden, kitchen equipment,lighting & electronic, bathroom's and plumbing, paint &decorates or storages & home appliance.Company provide their customers to products in retails price (Cooper, 2017). Homebase havelong termed customers they calculate their sales in the form in formulas. 1
Calculates the customer's lifetime value- when calculating CLV the moststraightforward ideas is to examine the rates and what the management of customers in \organisation and also understand the which is customers is long time in the organisations andwhich is not. Estimate customer's lifetime value- CLV analyses the organisation consuming power.The value of average order at business. Is $50 and 10% of chance of coming back andcoming a repeat purchase. And the finally assume that it costs $15 to acquire each newcustomers. The total revenue can expect to get from each customer is average valuedivided by one minus the repeat purchase rate $50/ (1-0.1) = $55.56 and subtractcustomers acquisition cost from that and get a customer lifetime value of $40.56.Predicted customer's lifetime value- Each of those calculations serves different purpose.Predictive CLV is the most powerful way to understand the customer and there valuechange over time. For example – in the e-commerce industry, benchmark data fromnearly 200 commerce companies. In the chart defines the most basic form of customersvalue lifetime. Is defines the single input, sum of all purchases and closed timeparameters, 365 days. On day one, customers with the highest lifetime values havealready defines themselves (Fitzroy and et.al., 2016). This means market and organisationdon't need to take long make decisions about their marketing . CLV is the best metric topredict future customers behaviours.2
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