logo

Determination and calculation of consumer's lifetime value of organisation

   

Added on  2020-06-04

13 Pages4067 Words344 Views
Customer Value Management
Determination and calculation of consumer's lifetime value of organisation_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Various components that help in determination and calculation of consumer's lifetimevalue.......................................................................................................................................3P2 Justify benefits of consumer lifetime value of organisation.............................................4P3 Factors which influence the value of customer lifetime value .........................................6TASK 2............................................................................................................................................7P4 Types of market segmentation strategies..........................................................................7P5 B2B and B2C decision making models and creation of consumer value opportunities...8TASK 3..........................................................................................................................................10P6 Different techniques and methods through which consumer loyalty and relationshipincrease.................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
Determination and calculation of consumer's lifetime value of organisation_2
INTRODUCTIONCustomer value management is a sort of art of gaining consumer individual value whichis often designed to make and attempt main activities which bear on potential of profitability andrevenues of consumer of telecom. A company can manage the clients and their opinions throughperceiving value wit the purpose of delivering money in order to make the business morepowerful. Homebase is a home improvement in British retailer along with garden centre withvarious UK stores and many other countries as well. The company has organised new campaignof SMS to render support to their activities of DM with promotional offers in their redeemableonline or stores (Adam, 2013). The company has uplift of 20% in their sales increment from onlySMS as well as 26.5% sales incremental driven through consumer who received both SMS andEmail. The purpose of this report is to demonstrate the understanding among consumer lifetimevalue concept and methods of calculating those elements along with numerous segments in theclient base for creating of consumer value opportunities. TASK 1P1 Various components that help in determination and calculation of consumer's lifetime valueIn the sector of business, this is required to focus on client's satisfaction and credibility tomanager the prosperity. Consumer values means the evaluation of distinct among entire workerand benefits cost products. Consumer value seek to maximise the importance through estimatingoffered product value, forming value expectation and usage of experience for renderingsatisfaction to buyers. There are traditional ways of marketing which help in the retention andvalue for consumer. These ways need to first analyse the concept of retention, satisfaction andretention of consumer. Consumer satisfaction can refer to the a individual indulgence or disappointment after theoutcome of a person gained from the perceived performance of products of Homebase related totheir expectation (The 5 Benefits of Customer Lifetime Value, 2016). Retention of consumerwhereas are the marketing strategies which is managed for increasing the literature value ofconsumer satisfaction, which Homebase can retain clients for the longer time period forcontributing to the benefits. This lead to the new term which is consumer lifetime value which refer to singlesignificant metric for considering the clients. This aid in making important sales, product3
Determination and calculation of consumer's lifetime value of organisation_3
development, marketing and other business decision for supporting consumer. The procedure ofcalculation of lifetime value analysis is time consuming process Through the help of CLV,Homebase can easily seek out the outcome of SMS campaign considering the cost effective workwhich help in retention, satisfaction and consumer value providing activities. This have variousmerits such as: This help in better consumer value forecasting for longer period of time which help inmeeting the demands of consumer. Client's lifetime value can be better indicator for developing the efficiency and reduceconsumer dissatisfaction. Evaluation of CLV is paramount for an enterprise like Homebase in order to assist thebusiness operation and activities. It avail in retention and supporting consumer satisfaction alongwith organisation sustainability in business industry. Here is the part of calculation of consumerlifetime value of Homebase for management of increment of sales in the company along withmeasuring the revenues. Through undertaking the elements of consumer retention andsatisfaction, one can gain more recognition of brand. P2 Justify benefits of consumer lifetime value of organisationThe consumer lifetime value defines the profits amount which focus over retaining ofclients and emphasising the level of purchase. There are various benefits which can help inmeeting the desired outcome in significant way for Homebase. Here are some of the benefitswhich this render to their consumers: Saving Money: This is more cheaper approach which aid in retaining existing consumerand carry out new potential buyer for consumers. Homebase can meet the satisfactionlevel among consumer through the assistance of consumer value management. Effective Marketing: Value of consumer lifetime lead to better opportunities ofmarketing which concentrate over the clients and focus over various features oforganisation and its products.Encourage Loyalty of Brand: This enhance the brand loyalty among clients increasingthe positioning among the consumer (4 Strategies That Drive Brand Loyalty, 2016).Homebase can improve their position and gain potential buyer through the help ofmanaging CLV. 4
Determination and calculation of consumer's lifetime value of organisation_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Customers Value Management Report
|10
|3201
|59

Customer Value Management Assignment Help
|14
|4156
|89

Introduction to Customer Value Management : Assignment
|12
|4041
|438

Report on Customer Value Management in Homebase Firm
|19
|6919
|63

Customer Value Management Homebase Company : Assignment
|16
|4865
|32

Customer Value Management Components
|17
|5296
|101