Customer Value Management Homebase Company : Assignment
Added on -2020-06-06
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CUSTOMER VALUE MANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Components that enable determination & calculation of customer's lifetime value..............1P2 Benefits of Customer Lifetime Value....................................................................................3P3 Factors that affect customer lifetime value............................................................................4TASK 2............................................................................................................................................6P4 Types of Market Segmentation Strategies applied to customer base....................................6P5 B2B and B2C models of decision making and opportunities value creation can be applied7TASK 3............................................................................................................................................9P6 Different techniques and methods can apply to increase customer relationship and loyalty9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONCustomer Value Management is a concept that defines a relationship of consumers withservices or products provider companies. It is an approach of identifying how much a customer isprofitable to firm and what are the ways of calculating overall time in which consumer can beretained by making higher buying from corporations. In this segment company monitors andmeasures monetary value that it is possessing through a client. By providing extraordinaryquality services and goods management can enhances value of a customer for his corporation.Present assignment is based on Homebase company which is a broadcasting provider and want toimprove its sales by 20% and currently is paying attention on increasing use of SMS services atmarketplace (Di Benedetto and Kim, 2016).TASK 1P1 Components that enable determination & calculation of customer's lifetime valueHomebase, a firm that uses a tool named as customer's lifetime value which is aforecasting of value that a business entity derives from relation ship between him or his clients.Nobody knows how far company's relationship will go with a customer. This kind of estimationneeds calculation of CLV that can be defined as a periodic value of a relationship that companyand its client have between them. For example a customer have attached with a corporation since12 months and value of this period is £x. There is a lot of elements that are available for affecting determinants of CLV. Details ofthese points are described below:Present Value: This is a rate of consumer's repetitive purchase from a particular firm. Itis a discounted value of future cash flows generated by current consumer base. Thisfactor can be calculated with help of time value of money as customer lifetime value isperiodic price that is dependent on customer retention for company (Weinstein andPohlman, 2015). Customer Loyalty: CLV is a price that relies upon loyalty of a customer because thisloyalty helps in determining the period for which a customer will be retained withassociation. For example if a customer is loyal then he will be connected with for longerperiod of time. On the other hand if client is not satisfied with products and services thatcompany is providing to them then they will not get in touch for firm after their first1
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