Customer Value Management: A Strategic Approach

This report discusses the significance of customer value management in enterprises. It explains that customers play a crucial role in increasing profitability and productivity. The report covers different business models, methods to enhance customer relationship, market segments, and more. It provides a comprehensive understanding of customer value management and its application in various contexts.

CUSTOMER VALUE MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Description on various components which enables working of enterprise to calculate
customer lifetime value. ............................................................................................................1
P2 Description on the benefits of customer lifetime value to the enterprise..............................2
P3 Evaluation on the factors which influence customer lifetime value. ....................................3
M1 Define the concept of customer life time value in context of B2B and B2C. .....................3
LO 2 ................................................................................................................................................4
P4 Define the types of market segmentation strategies. ............................................................4
P5 Describing the term as B2B and B2C decsion making models.............................................4
M2 Description on the segmentation model of B2B and B2C. ..................................................5
LO3 .................................................................................................................................................5
P6 Define the techniques and methods which helps the enterprise to have enhancement in
customer loyalty and relationship. .............................................................................................5
M3 Evaluation of techniques of CLV. .......................................................................................6
D1 Key idea of customer lifetime and ideas of CLV .................................................................6

INTRODUCTION
Customer value management is a term which referred as an act of having increment in
customer value individually. They are the important part of the enterprise and they used to play
crucial role in terms to having increment in the profitability and productivity of entity. They need
to be considered as blood and soul of enterprise (Christopher, 2016). In this way, enterprise need
to cope up with the needs and demand so that they can be attract towards the working of firm.
The present report has outlined the activities of Home base enterprise, it works in the manner as
small medium enterprise, which working as broadcasting. In addition to this, there will be
discussing of various factors which determine the impact on lifetime value of customer. The
assignment will be inclusive of things as are differed kind of business models, methods to
increase customer relationship, market segments etc. The main aim of this report is to have
enhancement in customers satisfaction.
LO1
P1 Description on various components which enables working of enterprise to calculate
customer lifetime value.
Customers are backbone to the enterprise. Without their present enterprise cannot able to
have long-term sustainability. They play valuable role in order to creation of organisation. It
helps the company to gain better profitability and productivity. In addition to this, to have
sustainable operation it is very important to satisfied the customer. For this they need to identify
their demand in market. In this term it can be said that customer's lifetime value is the thing
which is standard measurement and it is helpful to know net profit of firm from particular
individuals. In this way, it can be said that customer lifetime value will be calculated by having
reduction in the cost of providing service to the customer (Di Benedetto and Kim, 2016). In this
term it will be inclusive of the amount of expenses which is been made on the customer with the
help of the amount of the profit gained from the individual customer. Moreover, it is very
important to determine the value of the customer to the enterprise so that there can be creation of
effective relationship with them. It will be inclusive of the amount of the expenditure made on
the customer. It can be determine effectively with the comparison of benefit gained by him on
the week basis. In addition to this, it can be said that it is very helpful for the enterprise to gain
better productivity which helps the enterprise to avoid the expenses on the advertising process.
This kind of things may affect the performance of enterprise in adverse manner. The firm needs
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to take various measures which will help the firm to identify the suitable measures so that their
need can met. There are number of ways to determine customer lifetime value as-
Average revenue per user- it is very useful for enterprise to determine its average profit of the
customer on the basis of month and then it is need to be multiplied with 12 or 24 to get annual
CLV of Home-base.
Cohort analysis- It will be inclusive of the number of the factor which works as to changes and
this is need to be occur in term to enterprise during the time (Christopher, 2016). Thus, it can be
said that it is one of the effective analysis which work as to identify the requirement of customers
with the time. It is based on the various factors as are changes in market condition, seasonality
and preferences of customers.
Individualized- This measurement is very helpful in relation to identify the total value which
has been created by the customer with the help of channels, campaign and another kind of
mediums as are coupon etc. It will be inclusive of the things as are digital marketing and social
media, this both are effective medium in order to identify the best resources to the enterprise.
P2 Description on the benefits of customer lifetime value to the enterprise.
In this it can be said that the approach of CLV is having large impcat in order to sustain
the organization like Home-base. In this term it can be said that the process of CLV has
numerous of benefits in order to bring betterment for the operational function of enterprise.
There are some major benefits of CLV as are-
Business assets- under this it can be said that the CLV is very assistive to the enterprise to
provide the exact ideas about the total assets which are been owned by the enterprise in the
significant and detailed manner.
Customer segmentation- It is the procedure which is very useful to the business enterprise as
Home-base to have systematic segregation of customers. Thus, it is beneficial for enterprise to
identify its potential and permanent customers.
Complaint management- It is the process which helps to CLV to look after and sort out the
many of problems. There are the number if issues which are being faced by the enterprise. In
order to get overcome with it the firm ned to take appropriate measures so that this problem can
be sorted.
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Sustain the customers- This is the kind of approach which is assistive to the enterprise to retain
and sustain its customer with the help of taking the effective measures. It is use to the enterprise
to meet with the requirement of customers.
Better return of investment- This is the process which helps the firm to take various initiatives
to identify the measures in terms to meet the requirement of the enterprise. It is very helpful for
the firm like Home-base so it can get the better share in the company and it will be helpful for
the enterprise to gain the better revenue.
P3 Evaluation on the factors which influence customer lifetime value.
In this it can be said that the customer lifetime value will be deeply get affected in terms
to various factors which is having direct and indirect impacts over the organization like Home-
base. This kine of enterprise do not only influence the CLV but also takes various initiatives to
meet the requirement of customers in terms to gain better service from the enterprise. There are
the number of the factors which are affecting the operation of the firm in the large manner as are-
Consumer purchasing- The purchasing capacity of customer plays the essential role in terms to
have deep and significant effect on the operation function of working enterprise. In this term it
can be said that the consumer will purchase the good and service from the enterprise only the
time it helps to meet the requirement of customer in significant manner. In addition to this. It
helps the company to identify the suitable purchasing power of the customer's (Doligalski, 2014).
Customer Loyalty- In this term it can be said that customer loyalty plays the crucial role in
terms to have sustainable operation in the enterprise. The loyal customer are assets to the
enterprise as they are helpful to enhance the profitability.
Service by company- The services and products which are produce by the firm leave the greater
impact on the process of enterprise. In this term it can be said that the customer will help the firm
to have increment in the profitability of firm and take initiative to create the better customer
lifetime value.
M1 Define the concept of customer life time value in context of B2B and B2C.
The CLV causes the organization to pick up a superior thought of the purchaser's
prerequisites and therefore take the proper measures to meet them in an exceptionally compelling
way. The procedure is profoundly in view of the accumulation of the shopper information that
causes the organization to make the appropriate measures. The procedure of CLV encourages the
organization to have a superior offer of the income for B2C or B2B organizations. While in the
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B2B, the organizations collaborate with each other to pick up a superior efficiency. Then again,
In B2C, the cooperation between a business and the customer's occur that causes the organization
to pick up a superior offer of market. The B2B is the framework in which the organization or a
business deals the administrations or the items to different business. While in the B2C, the
business or the organization give its administrations to the customer's.
LO 2
P4 Define the types of market segmentation strategies.
The strategies to the firm are need to be framed in effective manner. It derived as
systematic plan of action. In this it is very important to develop the product and service effective
so that firm can run their operation effectively. Before, making it firm need to get assure with the
requirement of the customer's. In this term, it can be said that it is very helpful for the firm to use
this market segmentation strategies which are defined in following manner as are-
 Geographic segmentation- It is inclusive of the practice in term to develop the market
on the basis as geographical location. Under this firm need to cater the customer as per
the locality or region. In this way it can be said that firms need to take the suitable
measures to cater the needs of customers (Frow, Reisman and Payne, 2015).
 Demographic segmentation- under this customer are need to be segmented in terms to
the number of factors as are status, religion, race and occupation etc. It is very helpful for
the firm to plan the better and effective services.
 Behavioural segmentation- it is the term which is largely based on the attitude of buyer
towards the enterprise. It is very helpful for the firm to have increment in the knowledge
of entity in terms to the product and services so that effective usage of things can be
done.
P5 Describing the term as B2B and B2C decsion making models.
In this it can be said that the decision making model of B2B and B2C will be helpful for
the enterprise to meet the need of customers (Chacour and Ulaga, 2015). In this term it can be
said theta the decision making process will be helpful fort the enterprise to meet the basic
requirement of the enterprise. In this way, it can be determine as that B2C approach will only
focus over the sales and marketing departments. Thus, it can be said that the B2B approach will
be inclusive of the things as are HR, sales, marketing and finance. In the B2C the decision are
must be made for the weeks or months.
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M2 Description on the segmentation model of B2B and B2C.
It is critical for organizations like Home base to section their customer's as it gives
advertisers to get precise photo of their administration customer's. There are models for B2C
regions and they are as per the following:
Division in view of need: There are numerous organizations around the globe that convey their
customer's with comparative arrangement of items and administrations. Firms that can
comprehend the necessities in powerful way can achieve their objectives and destinations. For
this reason, business needs to lead time to time statistical surveying with the goal that necessities
and prerequisites can be distinguished. Further, custom's esteem is made, at that point
appropriate look after their inclinations and the issues that are looked by them are considered.
Further, for division model of B2B are additionally essential for recognizing people as their
customers. Beneath given is the model:
Needs: This is a kind of plan that empowers to sort benefit customer's in view of needs, wanted
results or comparative needs. This is profoundly successful for customer's like encouraging low
exertion associations or lessening protests. Customer's can create positive observation inside
their mind when every one of the issues that are looked by them are considered.
LO3
P6 Define the techniques and methods which helps the enterprise to have enhancement in
customer loyalty and relationship.
There are number of techniques and method which are need to be applied by the
companies in order to enhance the customer relationship and loyalty. In this term firm is able to
enhancing the profitability of the enterprise (Chacour and Ulaga, 2015). In order to attend the
desire goals the effective services are need to be delivered to the customers. In addition to this,
customer will take the products what they like the most. They are having the number of
expectation in terms to product and services in the market. There are some techniques which
helps to maintain the customer loyalty as are-
 Consideration over measurement of customer satisfaction- It is very helpful for the
enterprise yo know the taste and preferences. In this term it can be said that when the rate
of satisfaction are low than purchasing rate of the product will also get low. In this way
Home-base need to conduct the effective survey.
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 Skilled worker: It is fundamental that every one need to focus over inside the business
need to think about the sort of parts and duties that must be played by them. When they
are not ready to play out their parts with full productivity, at that point it has negative
effect over the business. Representatives are the substance of firm as they have
coordinate association with customers (Beckers, Risselada and Verhoef, 2014).
Appropriate preparing ought to be conveyed by considering the regions in which they
need.
 Customer's Retention: Customers who definitely think about the items and
administrations can without much of a stretch be pulled in when the issues that they were
confronting are appropriately considered. Business need to make suitable strides in which
criticism ought to be taken so they can decide the issues that were looked by them .
Along these lines, solid connection and customer's dependability can be raised.
M3 Evaluation of techniques of CLV.
The procedures and the techniques that are been actualized by the Home base for the
better CLV will help in estimating of the consumer loyalty encourages the organization to pick
up a superior efficiency and benefit by dissecting and furnishing the organization with the
reasonable thought regarding the requirements and requests of the customers (Di Benedetto and
Kim, 2016). The talented work will assist the organization with meeting their necessities and
work viably to meet the prerequisite criteria of the customers. This will enhance the customers
unwavering towards the referred to firm and causes the organization to have their maintenance.
D1 Key idea of customer lifetime and ideas of CLV
The customers' lifetime esteem approach assumes an extremely urgent part in the
administration of an association. At Home base, the CLV will assist the association with gaining
a superior profitability that causes the organization to pick up a superior thought regarding the
tasks that are been taken by the company to meet the customerss necessities and their requests.
The CLV approach will assist the organization with gaining a superior efficiency and benefit that
causes the organization to meet the prerequisites of the organization. The CLV approach
encourages the organization to have a superior offer of market and meet their necessities. Home
base will utilize this way to deal with have a superior thought of the activities that encourages the
organization to meet the prerequisites of the organization (Armstrong and et.al., 2015). This will
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assist the organization with having a superior buyer supportability and hold the potential or
customary customers, along these lines enhancing their indecisiveness.
CONCLUSION
Based on the above report it can be concluded that it is very essential to understand the
value of customer management. Customer value management is a term which referred as an act
of having increment in customer value individually. They are the important part of the enterprise
and they used to play crucial role in terms to having increment in the profitability and
productivity of entity. The present report has covered the activities as are differed kind of
business models, methods to increase customer relationship, market segments etc.
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REFERENCES
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Chacour, S. and Ulaga, W., 2015. Customer Value Audit in International Business Markets: A
Strategic Marketing Tool. In Proceedings of the 1998 Academy of Marketing Science
(AMS) Annual Conference. pp. 505-506. Springer, Cham.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Di Benedetto, C.A. and Kim, K.H., 2016. Customer equity and value management of global
brands: Bridging theory and practice from financial and marketing perspectives:
Introduction to a Journal of Business Research Special Section. Journal of Business
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Doligalski, T., 2014. Internet-based Customer Value Management: Developing Customer
Relationships Online. Springer.
Flint, D. J., Blocker, C. P. and Boutin Jr, P. J., 2011. Customer value anticipation, customer
satisfaction and loyalty: An empirical examination. Industrial marketing
management. 40(2). pp.219-230.
Frow, P., Reisman, R. and Payne, A., 2015. Co-Pricing: Co-Creating Customer Value Through
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Glennon, R.J. and et.al., 2016. Locating customer value in contracting-out decisions in English
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