Strengthening Customer Relationships
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This assignment delves into the realm of business process management and marketing strategies aimed at cultivating strong, lasting customer relationships. It investigates various elements and techniques that businesses can employ to enhance customer satisfaction and loyalty over an extended period. The discussion draws upon relevant academic resources and industry best practices to provide a comprehensive understanding of this crucial aspect of successful business operations.
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CUSTOMER
VALUE
MANAGEMENT
VALUE
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Components that enable an corporation to determine & calculate customer's lifetime value
.....................................................................................................................................................1
P2 Benefits of Customer Lifetime Value....................................................................................2
P3 Factors that affect customer lifetime value............................................................................3
TASK 2............................................................................................................................................5
P4 Types of Market Segmentation Strategies applied to customer base....................................5
P5 B2C and B2B decision-making models and demonstrate which is used to get opportunities
.....................................................................................................................................................6
TASK 3............................................................................................................................................7
P6 Different techniques and methods an organization can apply to increase customer
relationship .................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Components that enable an corporation to determine & calculate customer's lifetime value
.....................................................................................................................................................1
P2 Benefits of Customer Lifetime Value....................................................................................2
P3 Factors that affect customer lifetime value............................................................................3
TASK 2............................................................................................................................................5
P4 Types of Market Segmentation Strategies applied to customer base....................................5
P5 B2C and B2B decision-making models and demonstrate which is used to get opportunities
.....................................................................................................................................................6
TASK 3............................................................................................................................................7
P6 Different techniques and methods an organization can apply to increase customer
relationship .................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9
INTRODUCTION
Customer value management is a process in which organisation need to build appropriate
product and services to provide higher satisfaction to their consumers. This process required a
analysis on market and customer about their demand and need. After this, a organisation
manufacture appropriate products to providing higher satisfaction to them. This process is also
known as a art of increasing values of customers individually to get higher benefit and long
terms growth easily (Hammer, 2015). This project report is based on Homebase Embarked which
is a British home improvement retailer which was established in the year of 1979 by Sainsbury
and GB-Inno-BM. This report represent various components that used to determine for
customer's value for a long term period and its benefits. It uses some factors to build lifelong
customers in organisation and type of market segments strategies which is used to apply on
customers. At last it represent B2B and B2C decision making model for getting various
marketing opportunities ot some methods to increase customers relation easily.
TASK 1
P1 Components that enable an corporation to determine & calculate customer's lifetime value
For a business organisation it is very important to use appropriate tools and techniques
for build lifetime values of customers. All these thinks are used to build appropriate relation with
customers that help to get higher benefits and growth easily. In it employees of a company also
provide their contribution to understand customers needs and demand from organisation and its
products to provide them higher satisfaction easily. There are some components that used to
determine customer's lifetime value such as -
Individualized CLV: A business organisation like Homebase Embarked it is very
important to understand each and every individual's demand from organisation and various
products to produce appropriate services and goods to providing higher satisfaction easily.
Through this they can easily build trust in customer's mind for organisation's and its services as
well. Each and every component of market is very important for a company who understand
what exactly they want to serve and its advantages also. These all thinks will make possibility to
build image in market to get higher success easily (Kerzner and Kerzner, 2017). Through this
process organisation can easily get desired growth and profitability easily.
1
Customer value management is a process in which organisation need to build appropriate
product and services to provide higher satisfaction to their consumers. This process required a
analysis on market and customer about their demand and need. After this, a organisation
manufacture appropriate products to providing higher satisfaction to them. This process is also
known as a art of increasing values of customers individually to get higher benefit and long
terms growth easily (Hammer, 2015). This project report is based on Homebase Embarked which
is a British home improvement retailer which was established in the year of 1979 by Sainsbury
and GB-Inno-BM. This report represent various components that used to determine for
customer's value for a long term period and its benefits. It uses some factors to build lifelong
customers in organisation and type of market segments strategies which is used to apply on
customers. At last it represent B2B and B2C decision making model for getting various
marketing opportunities ot some methods to increase customers relation easily.
TASK 1
P1 Components that enable an corporation to determine & calculate customer's lifetime value
For a business organisation it is very important to use appropriate tools and techniques
for build lifetime values of customers. All these thinks are used to build appropriate relation with
customers that help to get higher benefits and growth easily. In it employees of a company also
provide their contribution to understand customers needs and demand from organisation and its
products to provide them higher satisfaction easily. There are some components that used to
determine customer's lifetime value such as -
Individualized CLV: A business organisation like Homebase Embarked it is very
important to understand each and every individual's demand from organisation and various
products to produce appropriate services and goods to providing higher satisfaction easily.
Through this they can easily build trust in customer's mind for organisation's and its services as
well. Each and every component of market is very important for a company who understand
what exactly they want to serve and its advantages also. These all thinks will make possibility to
build image in market to get higher success easily (Kerzner and Kerzner, 2017). Through this
process organisation can easily get desired growth and profitability easily.
1
Cohort Analysis: Cohort is a kind of group of individual's who provides their feedback
toward organisation's products an services. Through this they can easily improver quality of
products to enhance them for future time period. It is also a analysis process which is used to
improve existing quality of organisation easily. It get less time to get higher benefit for long
time period as well. This process is very important for Homebase Embarked because through this
they can easily understand what kind of changes they need to done in their firm. All these
business approaches helping them to expend their market structure easily.
Mathematical Formula: This is a kind of statistical representation which is represents
values of customers from past year s to present ones. In it they formulate a mathematical formula
to gather amount of their cost and customer attention as well. Through this they can easily get a
proper result of revenue from past year to earlier ones. It is a helpful tool to which is used to
build lifetimes customer's with organisation. These kind of formulas help to get higher and exact
result of proper research. This thing can be calculated through a specific formula as Total
revenue ÷ Number of months since customer joined and some other methamatical representation
are given below -
◦ CLV = ((T x AOV)AGM)ALT
Here; T = Average Monthly transactions
AOV = Average Order Value
ALT = Average customer Lifespan (in Months)
◦ in Detail:
Here; R = Monthly Retention Rate
D = monthly Discount Rate
Present Value: This component used to analyse customer's present value in organisation.
It include cost of product which is offering by organisation to its customer's. In it they need to
use flexible amount for them to build their trust for a long term period. It also includes time and
values of product in target market to get higher CLV and periodic values easily. For this
organisation have to reduce their values and cost according to customer's demand to provide
them higher satisfaction (Hollensen, 2015).
2
toward organisation's products an services. Through this they can easily improver quality of
products to enhance them for future time period. It is also a analysis process which is used to
improve existing quality of organisation easily. It get less time to get higher benefit for long
time period as well. This process is very important for Homebase Embarked because through this
they can easily understand what kind of changes they need to done in their firm. All these
business approaches helping them to expend their market structure easily.
Mathematical Formula: This is a kind of statistical representation which is represents
values of customers from past year s to present ones. In it they formulate a mathematical formula
to gather amount of their cost and customer attention as well. Through this they can easily get a
proper result of revenue from past year to earlier ones. It is a helpful tool to which is used to
build lifetimes customer's with organisation. These kind of formulas help to get higher and exact
result of proper research. This thing can be calculated through a specific formula as Total
revenue ÷ Number of months since customer joined and some other methamatical representation
are given below -
◦ CLV = ((T x AOV)AGM)ALT
Here; T = Average Monthly transactions
AOV = Average Order Value
ALT = Average customer Lifespan (in Months)
◦ in Detail:
Here; R = Monthly Retention Rate
D = monthly Discount Rate
Present Value: This component used to analyse customer's present value in organisation.
It include cost of product which is offering by organisation to its customer's. In it they need to
use flexible amount for them to build their trust for a long term period. It also includes time and
values of product in target market to get higher CLV and periodic values easily. For this
organisation have to reduce their values and cost according to customer's demand to provide
them higher satisfaction (Hollensen, 2015).
2
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Customer Loyalty: This is a very important for s organisation to understand their
customer's loyalty toward products an services of firm because through this they can easily
analyse their future need and demand to fulfil them easily. Customer's lifetime value is depends
on this process to get to understand their higher satisfaction from organisation's overall services.
If customer's is not loyal toward the firm then they will definitely loosing their attention and
build interest toward another organisation. These kind of thing will harm company's value in
target market and negatively impact on overall growth as well.
P2 Benefits of Customer Lifetime Value
Customers lifetime value is very important for a organisation to build their own image in
market. Through this other can easily get higher profitability and desired growth as well.
Customer value help to build long time goodwill in market through quality products and services
as well. This kind of things is very helpful for organisation to build values in front of competitive
market. There are some other benefits of customers lifetime values are given below -
Build effective goodwill in market – It is help to build appropriate goodwill in market
about organisation's products an their services to getting higher business approaches. Customers
are the last purchaser of trade good and a company is always building complex to provide them
top-quality goods accordant to their petition. When organisational get amount of customers then
they will easily get appropriate position in market to get higher growth and advantages easily.
Get higher benefits and growth easily - In this term, technology helps for innovative
ideas in manufacturing and supply of products. For it, Homebase Embarked need to stand with
those advance ideas and provide their services through this. For this, they start online booking
and fast delivery through this idea which helps them to expend their business easily in new
country.
Financial growth- It is based on organisations financial structure. This is involves all the
business transaction and capital needs or wants. They are provides brief information of their
funds for manufacture and investment process. Customer Lifetime Value help to build financial
growth in market to get effective income in money related terms for organisation's product's and
services (Kim, 2015).
Better Forecasting: The customers are guide to decision maker to do differentiate what
is right or what is wrong for organisation and individuals. After that, they can choose amended
option between them and this result should have to be what is right for each and every one. This
3
customer's loyalty toward products an services of firm because through this they can easily
analyse their future need and demand to fulfil them easily. Customer's lifetime value is depends
on this process to get to understand their higher satisfaction from organisation's overall services.
If customer's is not loyal toward the firm then they will definitely loosing their attention and
build interest toward another organisation. These kind of thing will harm company's value in
target market and negatively impact on overall growth as well.
P2 Benefits of Customer Lifetime Value
Customers lifetime value is very important for a organisation to build their own image in
market. Through this other can easily get higher profitability and desired growth as well.
Customer value help to build long time goodwill in market through quality products and services
as well. This kind of things is very helpful for organisation to build values in front of competitive
market. There are some other benefits of customers lifetime values are given below -
Build effective goodwill in market – It is help to build appropriate goodwill in market
about organisation's products an their services to getting higher business approaches. Customers
are the last purchaser of trade good and a company is always building complex to provide them
top-quality goods accordant to their petition. When organisational get amount of customers then
they will easily get appropriate position in market to get higher growth and advantages easily.
Get higher benefits and growth easily - In this term, technology helps for innovative
ideas in manufacturing and supply of products. For it, Homebase Embarked need to stand with
those advance ideas and provide their services through this. For this, they start online booking
and fast delivery through this idea which helps them to expend their business easily in new
country.
Financial growth- It is based on organisations financial structure. This is involves all the
business transaction and capital needs or wants. They are provides brief information of their
funds for manufacture and investment process. Customer Lifetime Value help to build financial
growth in market to get effective income in money related terms for organisation's product's and
services (Kim, 2015).
Better Forecasting: The customers are guide to decision maker to do differentiate what
is right or what is wrong for organisation and individuals. After that, they can choose amended
option between them and this result should have to be what is right for each and every one. This
3
principal is also attempt to generate products values for them as well as provides larger ration in
firm which is increases their productivity and services. It is help to provide appropriate products
an services according to customer's demand and need as well.
Re-invent royalty management: Customers lifetime values help to build re-invention
sources in organisational to get higher achievement of goods management process . These kind
of products help to build re image of existing products an services to build its higher
sati9safaction in customer's mind. In it organisation can use advance e technology and innovative
ideas to build their own image in market easily through new an creative ideas as well.
Retention/Win Back of Customers: Customers are last buyer of products who build
image of organisation in competitive market for higher benefits and profit. Individuals build
long-time value will helping to them for winning in target and competitive market to get higher
benefit as well (Kotler, 2015).
P3 Factors that affect customer lifetime value
Customer's lifetime value is used to calculate firm's revenue for higher growth and earning as
well. Through this process Homebase can easily evaluate influences that can affect on
customer's demand and their relation toward the firm and its products as well. Itv is kind of
calculation method which includes proper formulas to summarized net profit/loss by positioning
of customers' relation with the firm. CLV is directly affect ion their higher growth and earning as
well. There are some factors that can influence customer's demand and their lifetime value such
as-
Difficulties in proper delivery – For a business organisation it is very important to
understand proper time period an customers want for particular product. If company facing
difficulties to deliver goods that can easily build influences in Customers lifetime values with
organisation. These kind of factors can negatively affect on organisation value in target market
and reduce amount of individual who connected with company.
Changes in technology – For Homebase it is very important to use advance technology
and innovation ideas in their organisation to providing new and creative products easily in
market. Improper use of digitalisation and old process can create influences in customer's mind
because they only want to purchase new and creative product that help to provide them higher
satisfaction easily (Kotler, 2017).
4
firm which is increases their productivity and services. It is help to provide appropriate products
an services according to customer's demand and need as well.
Re-invent royalty management: Customers lifetime values help to build re-invention
sources in organisational to get higher achievement of goods management process . These kind
of products help to build re image of existing products an services to build its higher
sati9safaction in customer's mind. In it organisation can use advance e technology and innovative
ideas to build their own image in market easily through new an creative ideas as well.
Retention/Win Back of Customers: Customers are last buyer of products who build
image of organisation in competitive market for higher benefits and profit. Individuals build
long-time value will helping to them for winning in target and competitive market to get higher
benefit as well (Kotler, 2015).
P3 Factors that affect customer lifetime value
Customer's lifetime value is used to calculate firm's revenue for higher growth and earning as
well. Through this process Homebase can easily evaluate influences that can affect on
customer's demand and their relation toward the firm and its products as well. Itv is kind of
calculation method which includes proper formulas to summarized net profit/loss by positioning
of customers' relation with the firm. CLV is directly affect ion their higher growth and earning as
well. There are some factors that can influence customer's demand and their lifetime value such
as-
Difficulties in proper delivery – For a business organisation it is very important to
understand proper time period an customers want for particular product. If company facing
difficulties to deliver goods that can easily build influences in Customers lifetime values with
organisation. These kind of factors can negatively affect on organisation value in target market
and reduce amount of individual who connected with company.
Changes in technology – For Homebase it is very important to use advance technology
and innovation ideas in their organisation to providing new and creative products easily in
market. Improper use of digitalisation and old process can create influences in customer's mind
because they only want to purchase new and creative product that help to provide them higher
satisfaction easily (Kotler, 2017).
4
Social factors – these factor are related to change in fashion and trends that can affect
customers lifetime value in a organisation. For a company it is very important to build
appropriate product and services that help to provide higher satisfaction to customers. For this
they need to adopt marketing research strategy to providing higher satisfaction to customer by
their products and services as well. Social factor are make influence in customer's demand
because they want exact products according to market changes and its trend.
Nature of organisation – Company such as Homebase needs to use effective tool an
technique in their firm to providing higher satisfaction to customers. For this they can use
flexibility in cost and prizing of products to build attraction in customers mind toward
organisation. All these this factors help to build effective nature of organisation in market and
relation with customers for long time. A company like Homebase need to build flexibility in
goods rate according to customers ability to pay easily, so they can easily build trust in their
mind. But for this they need to manage exact quality to survive in competition and target market
as well (Kumar and Reinartz, 2016).
Change in currency values – Currency of country is play most important role to provide
higher growth to organisation and product satisfaction to customers as well. Through this
organisation can easily build valuation of their good more effectively and properly because
reduction in currency value help to increase creation demand in target market. Through this
proper relation with customers are also build for long time which helps a organisation to survive
in target market easily.
TASK 2
P4 Types of Market Segmentation Strategies applied to customer base
Market segmentation is useful for organisation to identify who is the buyer of the
products and services or their culture and religion as well. Through this organisation can easily
divide their market in exact and appropriate manner to get higher portability easily. In it higher
authority of organisation use to classify their products value according to different elements and
segments. In it marketing and research department play a most important role to get higher
research of each and every elements easily. There are five strategies that manager of organisation
can use to divide its market and population to distribute all goods easily such as -
5
customers lifetime value in a organisation. For a company it is very important to build
appropriate product and services that help to provide higher satisfaction to customers. For this
they need to adopt marketing research strategy to providing higher satisfaction to customer by
their products and services as well. Social factor are make influence in customer's demand
because they want exact products according to market changes and its trend.
Nature of organisation – Company such as Homebase needs to use effective tool an
technique in their firm to providing higher satisfaction to customers. For this they can use
flexibility in cost and prizing of products to build attraction in customers mind toward
organisation. All these this factors help to build effective nature of organisation in market and
relation with customers for long time. A company like Homebase need to build flexibility in
goods rate according to customers ability to pay easily, so they can easily build trust in their
mind. But for this they need to manage exact quality to survive in competition and target market
as well (Kumar and Reinartz, 2016).
Change in currency values – Currency of country is play most important role to provide
higher growth to organisation and product satisfaction to customers as well. Through this
organisation can easily build valuation of their good more effectively and properly because
reduction in currency value help to increase creation demand in target market. Through this
proper relation with customers are also build for long time which helps a organisation to survive
in target market easily.
TASK 2
P4 Types of Market Segmentation Strategies applied to customer base
Market segmentation is useful for organisation to identify who is the buyer of the
products and services or their culture and religion as well. Through this organisation can easily
divide their market in exact and appropriate manner to get higher portability easily. In it higher
authority of organisation use to classify their products value according to different elements and
segments. In it marketing and research department play a most important role to get higher
research of each and every elements easily. There are five strategies that manager of organisation
can use to divide its market and population to distribute all goods easily such as -
5
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Demographic – These kind of areas are divides with specific segmentation as per
believe, norms, age, gender, cast, standard and religion etc.. This is used for getting proper
knowledge of population and its desire from organisation and its product. All type of segment
play a different role toward its services and products as well. In it assign people producing their
products and services in the kind of manner to provide them higher satisfaction easily. In it
organisation provide specific information of products an services to young generation through
SMS services that help to provide them specific information easily.
Geographic – these kind of segments are divided according to Areas such as urban and
rural, city, industry and backward locational to provide them appropriate services that they can
easily afford. These kind of areas have different taste and choice to choose specific product from
organisation. So for it, this segment help to analyse what type of products and services will
helping them to get higher business advantage easily (Pearson, 2016).
Psycho graphic – These kind of segments are divided according to lifestyles, hobbies
and interests of customers toward specific products and its services. This strategy serve market
quality and its importance in target market. It is uses for those customers who are conservative
for price and they only want to get appropriate product according to their own demand and need
as well (Rihov, 2015).
Behavioural – These kind of things are used to serve effective services to customers
according to pattern of use, sensitivity price, brand loyalty and benefits sought etc.. These kind
of information are use to gather proper information through data reports, surveys and statistical
analysis.
Combination Strategy – These kind of strategy are used to provide specific information
of overall process that help to deliver specific quality services easily (Schwepker and Schultz,
2015).
B2B segmentation: markets of B”B are categorised in numerous was which makes the
process of segmentation more effective in order to meet the target. The segmentation is often
made on the basis of different segments types such as demographic segment like business size,
location of company etc. Based on tiering of business client can eliminate on the basis of their
investment budget and other elements. These are the best methods on which basis, segmentation
on B2B can be made.
6
believe, norms, age, gender, cast, standard and religion etc.. This is used for getting proper
knowledge of population and its desire from organisation and its product. All type of segment
play a different role toward its services and products as well. In it assign people producing their
products and services in the kind of manner to provide them higher satisfaction easily. In it
organisation provide specific information of products an services to young generation through
SMS services that help to provide them specific information easily.
Geographic – these kind of segments are divided according to Areas such as urban and
rural, city, industry and backward locational to provide them appropriate services that they can
easily afford. These kind of areas have different taste and choice to choose specific product from
organisation. So for it, this segment help to analyse what type of products and services will
helping them to get higher business advantage easily (Pearson, 2016).
Psycho graphic – These kind of segments are divided according to lifestyles, hobbies
and interests of customers toward specific products and its services. This strategy serve market
quality and its importance in target market. It is uses for those customers who are conservative
for price and they only want to get appropriate product according to their own demand and need
as well (Rihov, 2015).
Behavioural – These kind of things are used to serve effective services to customers
according to pattern of use, sensitivity price, brand loyalty and benefits sought etc.. These kind
of information are use to gather proper information through data reports, surveys and statistical
analysis.
Combination Strategy – These kind of strategy are used to provide specific information
of overall process that help to deliver specific quality services easily (Schwepker and Schultz,
2015).
B2B segmentation: markets of B”B are categorised in numerous was which makes the
process of segmentation more effective in order to meet the target. The segmentation is often
made on the basis of different segments types such as demographic segment like business size,
location of company etc. Based on tiering of business client can eliminate on the basis of their
investment budget and other elements. These are the best methods on which basis, segmentation
on B2B can be made.
6
Assist to build CLV - These segmentation techniques help in understanding the value of
consumer and create a visible and coherent view among organisation and clients. Proper
information management, marketing and targetting can help the organisation in achieving their
CLV.
Customers Imagery - Consumer perception refer to the positioning of brand among the
public or customer of enterprise. This presents their mind set and their views in regard of
organisation. On the other hand, consumer imagery attempts to enhance and preserve their own
image through purchasing as well as brand or service prioritising service that they think are
congruent with their own image and reducing that are not then the phenomenon.
Perception risk: Customer's perception toward goods has create both positive and
negative impact on organisation. Various type of perception social, financial, physical,
functional, time etc. are very important to manage by company's managers. So that its very
important for marketing mangers to identify perception risk through security, hidden extra cost
and reputation or many more activities.
Customer relevant - Consumer relevance and involvement is required for the
organisation in order to gain their response and understand their views over the certain services.
This can help in meeting the specific outcome through understanding various aspects of
consumer as they participate and presents their views over the delivered products and services.
P5 B2C and B2B decision-making models and demonstrate which is used to get opportunities
Decision making process of organisation is based on B2B and B2C business technique in
which organisation provide higher satisfaction to their customers and other organisation easily.
Decision Making Models B2C B2B
Rational/Classical Model These are the kind of strategy
in which organisation use
different types of tool and
technique to provide direct
information to customers about
specific products an services
that company wants to serve in
These are the kind of strategy
which is uses by large scale
organisation to build specific
image of their organisation to
other business. It is used to
expend business strategy in
other market to get higher
7
consumer and create a visible and coherent view among organisation and clients. Proper
information management, marketing and targetting can help the organisation in achieving their
CLV.
Customers Imagery - Consumer perception refer to the positioning of brand among the
public or customer of enterprise. This presents their mind set and their views in regard of
organisation. On the other hand, consumer imagery attempts to enhance and preserve their own
image through purchasing as well as brand or service prioritising service that they think are
congruent with their own image and reducing that are not then the phenomenon.
Perception risk: Customer's perception toward goods has create both positive and
negative impact on organisation. Various type of perception social, financial, physical,
functional, time etc. are very important to manage by company's managers. So that its very
important for marketing mangers to identify perception risk through security, hidden extra cost
and reputation or many more activities.
Customer relevant - Consumer relevance and involvement is required for the
organisation in order to gain their response and understand their views over the certain services.
This can help in meeting the specific outcome through understanding various aspects of
consumer as they participate and presents their views over the delivered products and services.
P5 B2C and B2B decision-making models and demonstrate which is used to get opportunities
Decision making process of organisation is based on B2B and B2C business technique in
which organisation provide higher satisfaction to their customers and other organisation easily.
Decision Making Models B2C B2B
Rational/Classical Model These are the kind of strategy
in which organisation use
different types of tool and
technique to provide direct
information to customers about
specific products an services
that company wants to serve in
These are the kind of strategy
which is uses by large scale
organisation to build specific
image of their organisation to
other business. It is used to
expend business strategy in
other market to get higher
7
market. This is very specific
for small scale business
organisation to pay specific
attention of customers toward
goods and services as well.
benefit easily. This a new kind
of structure which is used in
decision making process as
well.
Administrative or Bounded
Rationality Model
In this segmentation, it is very
supporting in making decisions
so that they can achieve target
audience. Business to
customers generally form as
small business enterprise so
these kinds of firms there are
less alternatives. Managers can
evaluate them in appropriate
manner. It is responsibilities of
decision-maker to consider all
these alternatives while
making effective decisions
These are the kind of
techniques which is used to
provide higher business
approaches in business
organisation to provide them
new business approaches .
These are used to build
effective decision making
approach to get higher
business opportunities in target
market. It is very useful for
large company to get higher
success after dealing with
same companies.
Retrospective Decision-
making Model
In it organisation build values
of products and services in
market to introduce them for
purchasing easily.
In it employees of organisation
do not go anywhere they only
contact with large scale
organisation's directly.
TASK 3
P6 Different techniques and methods an organization can apply to increase customer relationship
For a business organisation it is very important to build appropriate relation with
customers to get higher profitability easily. In it they use various method to build their own
image in target market and customers minds as well. Through this organisation build their own
positive reputation by appropriate product and services. There are various kind of methods are
determine which is used to build positive relation with customers for along time period such as -
8
for small scale business
organisation to pay specific
attention of customers toward
goods and services as well.
benefit easily. This a new kind
of structure which is used in
decision making process as
well.
Administrative or Bounded
Rationality Model
In this segmentation, it is very
supporting in making decisions
so that they can achieve target
audience. Business to
customers generally form as
small business enterprise so
these kinds of firms there are
less alternatives. Managers can
evaluate them in appropriate
manner. It is responsibilities of
decision-maker to consider all
these alternatives while
making effective decisions
These are the kind of
techniques which is used to
provide higher business
approaches in business
organisation to provide them
new business approaches .
These are used to build
effective decision making
approach to get higher
business opportunities in target
market. It is very useful for
large company to get higher
success after dealing with
same companies.
Retrospective Decision-
making Model
In it organisation build values
of products and services in
market to introduce them for
purchasing easily.
In it employees of organisation
do not go anywhere they only
contact with large scale
organisation's directly.
TASK 3
P6 Different techniques and methods an organization can apply to increase customer relationship
For a business organisation it is very important to build appropriate relation with
customers to get higher profitability easily. In it they use various method to build their own
image in target market and customers minds as well. Through this organisation build their own
positive reputation by appropriate product and services. There are various kind of methods are
determine which is used to build positive relation with customers for along time period such as -
8
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Understanding of their demand and need – for a business organisation it is very
importrt6ant to understand customers an market demand or need to provide them higher
satisfaction easily. In this process research and marketing department help to monitor or analyse
their demand from particular organisations and its goods as well. After this manufacturing
division create appropriate thing to build trust in their mind toward company and its services as
well (Stark, 2015).
Cost reduction process- This is also a technique which is used to build relation with
customers for as long time. In it company use flexibility in prices according to customers
demand to provide them higher satisfaction easily. Cost is only tool which is used to attract
customers easily toward organisation and its services easily. This is best promotional tool that
directivity affect on customers satisfaction and their demand as well. It is build trust in customers
mind for organisation and its cost process that they purchase from administration. Price and cost
help to build long term relation in market.
Quality management – A products need to be in proper quality that help to provide
higher satisfaction to customers because cost and quality both are working together to build trust
in consumers mind for product as well. This is very important for a organisation to manage
quality to compete with competitive organisation's easily. Consumer always want to get effective
and appropriate quality of their products that they purchase through this they can be in touch
with organisation for a long time easily.
Promotional activities – These kind of activities are used to determine information about
product and services of organisation that they want to serve in target market. This is most
appropriate tool to build relation with customers easily and for long time as well. In it
organisation can use Advertising, price management, internet variations, paper media and
electronic media as well. Through this organisation build their value and imager in target market
easily. Employees of organisation take in part of promotion activities to provide appropriate
information of goods and its values in front of consumers (Weinstein and Pohlman, 2015).
Keep in touch with customers - For a business organisation, it is very important to
build effective relation with their customers to resolve its problem on proper time. In it they can
use to be in touch with them to understand their problem problem properly and provide effective
solution is exact manner. Through this customers build trust toward organisation and its products
9
importrt6ant to understand customers an market demand or need to provide them higher
satisfaction easily. In this process research and marketing department help to monitor or analyse
their demand from particular organisations and its goods as well. After this manufacturing
division create appropriate thing to build trust in their mind toward company and its services as
well (Stark, 2015).
Cost reduction process- This is also a technique which is used to build relation with
customers for as long time. In it company use flexibility in prices according to customers
demand to provide them higher satisfaction easily. Cost is only tool which is used to attract
customers easily toward organisation and its services easily. This is best promotional tool that
directivity affect on customers satisfaction and their demand as well. It is build trust in customers
mind for organisation and its cost process that they purchase from administration. Price and cost
help to build long term relation in market.
Quality management – A products need to be in proper quality that help to provide
higher satisfaction to customers because cost and quality both are working together to build trust
in consumers mind for product as well. This is very important for a organisation to manage
quality to compete with competitive organisation's easily. Consumer always want to get effective
and appropriate quality of their products that they purchase through this they can be in touch
with organisation for a long time easily.
Promotional activities – These kind of activities are used to determine information about
product and services of organisation that they want to serve in target market. This is most
appropriate tool to build relation with customers easily and for long time as well. In it
organisation can use Advertising, price management, internet variations, paper media and
electronic media as well. Through this organisation build their value and imager in target market
easily. Employees of organisation take in part of promotion activities to provide appropriate
information of goods and its values in front of consumers (Weinstein and Pohlman, 2015).
Keep in touch with customers - For a business organisation, it is very important to
build effective relation with their customers to resolve its problem on proper time. In it they can
use to be in touch with them to understand their problem problem properly and provide effective
solution is exact manner. Through this customers build trust toward organisation and its products
9
as well. Employees of organisation also create value in their mind by their quality services and
advises on timely bases (Xu and Prybutok, 2015).
This company can use digital technology like mobile application and social media for
getting close to their customers. These are very effective ways because more information can be
collected from the buyers in short interval of time. Strengthening relationship with customers
require more interaction with them. Customers do not have much time in this busy life but they
spend significant amount of time on social media. Taking feedbacks of buyers from social media
is something which customer would not complain about. This platform can also be used at the
time telling buyers about various offers which company is offering in market. Cognitive system
can be used for getting details about customer. This can be used for analysing their buying
pattern. This organisation can start e-commerce business for cross selling, rewarding consumer is
another method which can taken in account for having fine relationship with them.
CONCLUSION
From the above report it has been summarised that customers play a most important role
in organisation to provide them higher satisfaction and appropriate growth as well. This project
report is based on Homebase Embarked which is a British home improvement retailer so for
them it is very important to mange consumers value to build appropriate image in competitive
market. This report represent various components that enable to determine customers 's lifetime
value for long time period and its benefit to get higher growth. It determine various factor that
affect customer life time values in a organisation and type of market segment strategies that used
to applied on costumes bases exactly. At last it determine B2B and B2C decision making models
that used to get higher opportunities and some different elements or techniques which is use to
increase customers relation for long period easily.
10
advises on timely bases (Xu and Prybutok, 2015).
This company can use digital technology like mobile application and social media for
getting close to their customers. These are very effective ways because more information can be
collected from the buyers in short interval of time. Strengthening relationship with customers
require more interaction with them. Customers do not have much time in this busy life but they
spend significant amount of time on social media. Taking feedbacks of buyers from social media
is something which customer would not complain about. This platform can also be used at the
time telling buyers about various offers which company is offering in market. Cognitive system
can be used for getting details about customer. This can be used for analysing their buying
pattern. This organisation can start e-commerce business for cross selling, rewarding consumer is
another method which can taken in account for having fine relationship with them.
CONCLUSION
From the above report it has been summarised that customers play a most important role
in organisation to provide them higher satisfaction and appropriate growth as well. This project
report is based on Homebase Embarked which is a British home improvement retailer so for
them it is very important to mange consumers value to build appropriate image in competitive
market. This report represent various components that enable to determine customers 's lifetime
value for long time period and its benefit to get higher growth. It determine various factor that
affect customer life time values in a organisation and type of market segment strategies that used
to applied on costumes bases exactly. At last it determine B2B and B2C decision making models
that used to get higher opportunities and some different elements or techniques which is use to
increase customers relation for long period easily.
10
REFERENCES
Books and Journals
Hammer, M., 2015. What is business process management?. In Handbook on Business Process
Management 1. pp. 3-16. Springer, Berlin, Heidelberg.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education
Limited.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kim, J. and et. al., 2015. The contributions of firm innovativeness to customer value in
purchasing behavior. Journal of product innovation management. 32(2). pp.201-213.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Kotler, P., 2017. Customer value management. Journal of Creating Value, 3(2), pp.170-172.
Kumar, V. and Reinartz, W., 2016. Creating enduring customer value. Journal of Marketing.
80(6). pp.36-68.
Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
Rihova, I. and et. al., 2015. Conceptualising customer‐to‐customer value co‐creation in tourism.
International Journal of Tourism Research. 17(4). pp.356-363.
Schwepker, C. H. and Schultz, R. J., 2015. Influence of the ethical servant leader and ethical
climate on customer value enhancing sales performance. Journal of Personal Selling &
Sales Management. 35(2). pp.93-107.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1).
pp. 1-29. Springer, Cham.
Weinstein, A. and Pohlman, R. A., 2015. Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS)
Annual Conference. pp. 132-133. Springer, Cham.
Xu, C., Peak, D. and Prybutok, V., 2015. A customer value, satisfaction, and loyalty perspective
of mobile application recommendations. Decision Support Systems. 79. pp.171-183.
Online
Tools of customer relationship management. 2017 [Online]. Available through:
<https://www.google.co.uk/search?
q=tools+of+customer+relationship+management&source=lnms&tbm=isch&sa=X&ved
=0ahUKEwiJtLCxlZHZAhVDuI8KHWVwArkQ_AUICigB&biw=1319&bih=604#img
rc=xArC8dJ25vAzfM:>.
11
Books and Journals
Hammer, M., 2015. What is business process management?. In Handbook on Business Process
Management 1. pp. 3-16. Springer, Berlin, Heidelberg.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education
Limited.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kim, J. and et. al., 2015. The contributions of firm innovativeness to customer value in
purchasing behavior. Journal of product innovation management. 32(2). pp.201-213.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Kotler, P., 2017. Customer value management. Journal of Creating Value, 3(2), pp.170-172.
Kumar, V. and Reinartz, W., 2016. Creating enduring customer value. Journal of Marketing.
80(6). pp.36-68.
Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
Rihova, I. and et. al., 2015. Conceptualising customer‐to‐customer value co‐creation in tourism.
International Journal of Tourism Research. 17(4). pp.356-363.
Schwepker, C. H. and Schultz, R. J., 2015. Influence of the ethical servant leader and ethical
climate on customer value enhancing sales performance. Journal of Personal Selling &
Sales Management. 35(2). pp.93-107.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1).
pp. 1-29. Springer, Cham.
Weinstein, A. and Pohlman, R. A., 2015. Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS)
Annual Conference. pp. 132-133. Springer, Cham.
Xu, C., Peak, D. and Prybutok, V., 2015. A customer value, satisfaction, and loyalty perspective
of mobile application recommendations. Decision Support Systems. 79. pp.171-183.
Online
Tools of customer relationship management. 2017 [Online]. Available through:
<https://www.google.co.uk/search?
q=tools+of+customer+relationship+management&source=lnms&tbm=isch&sa=X&ved
=0ahUKEwiJtLCxlZHZAhVDuI8KHWVwArkQ_AUICigB&biw=1319&bih=604#img
rc=xArC8dJ25vAzfM:>.
11
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