Effective Customer Value Management

The provided document is a report on managing consumer values for business success. It emphasizes the significance of understanding customer values and using effective strategies such as STP processes, email, and SMS campaigns to enhance customer satisfaction and loyalty. The report also discusses the importance of creating value from customer relationships and achieving business results through proper management of consumer values.

CUSTOMERS
VALUE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different elements which help in calculating and determining of customers lifetime value.1
P2 Advantages of customers lifetime value of company............................................................2
P3 Factors which impact on value of consumers lifetime value.................................................3
TASK 2............................................................................................................................................4
P4 Kinds of market segmentation strategies...............................................................................4
P5 B2C and B2B decisions making models and create of opportunities of customers value ....5
TASK 3 ...........................................................................................................................................6
P6 Various methods and techniques by which loyalty of customer and increases relationship. 6
CONCLUSION .............................................................................................................................7
REFRENCES ..................................................................................................................................8

INTRODUCTION
Management of customers value is a kind of art for earning particular value of customers
which designs are often made and important activities are attempt which can bear potential of
revenue of telecom buyers and profitability. Organisation manage their opinions and clients for
understanding value with a purpose of money delivered for making a enterprise more strong.
Homebase is a home changes in British retailer through centre of garden with different stores of
UK and other countries also. They had conducted new SMS campaign for making support to DM
activities through offers of promotional in their exchangeable stores. Organisations is rising of
20% in their incremental of sales only from SMS along with 26.5% incremental of sales in which
SMS and Email both are received by customers (Adam, 2013). Report purpose is to demonstrate
learning with concept of customers lifetime value and calculations of methods which
components are having many segments in base of client for creating opportunities of customers
value also discussed about advantages of lifetime value of customers of an company.
TASK 1
P1 Different elements which help in calculating and determining of customers lifetime value
In this enterprise sector, it is necessary to focused on satisfaction of buyers and managers
creditability. Value of consumers means distinct evaluation with whole employees and cost of
products benefits. It will look for increasing importance along with approximation of offered
value of product, forming of expectation value and experience usage for customers satisfaction.
There are many ways of marketing which help in consumers value and retention (Bosworth,
2012). It have to analysed first about retention concept, customers retention and satisfaction.
Satisfaction of customers refers disappointment and satisfaction after consumers gained
results from product performance of Homebase affiliated to buyers expectations. Consumers
retention whereas strategies of marketing which are managed for raising literature value of
buyers satisfaction, where firm can retain their customers for a long period of time for benefits
contribution.
It will lead to a fresh term of CLV which refer to individual important metric for
customers contribution. It will help in making necessary marketing, product development, sales
and others decisions of enterprise for customers support. Process of calculating of lifetime value
analysis consumes lots of time in this process with the help of consumers lifetime value ,
Homebase can look out results of campaign in SMS which consider cost of work effectively it
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will help in value of buyers, satisfaction and retention activities. It is having different advantages
like as:
 It will help in forecasting of better buyers value for longer time which help in achieving
customers demands.
 CLV can be a good signal for efficiency development and declining dissatisfaction of
consumers.
Consumers lifetime value are evaluated is paramount for an business such as Homebase
assist enterprise activities and operations. It will help in supporting and retention satisfaction of
buyers as well as sustainability of company in enterprise. Part of calculations of CLV of firms
management of measuring revenue as well as sales incremental in Homebase. By considering the
components of customers satisfaction and retention, increase their brand value.
P2 Advantages of customers lifetime value of company
CLV means amount of profit which mainly focus over importance of purchase level and
buyers retaining (Hawkins, 2013). Their are different advantages which help in achieving desired
results in important way for enterprise. Some of advantages which are provided to consumers:
 Saving of money: It is a very cheaper approach which help in holding existing
customers and move out fresh latent buyers for customers. They can achieve level of
satisfaction within management of customers value assistance.
 Effective marketing: CLV leads to better marketing opportunities which focus on their
clients and concentrate over different companies features and their products.
 Promotes brand loyalty: It will promote loyalty of brand within buyers positioning are
raising among customers. Homebase can gain consumers potential and positions are
improved with the help of consumers lifetime value management.
Discussion of mention calculations which require through important concept of these
components which are discussed below:
 Customers acquisition cost: It will referred the associated cost in customers regards
for buying the product and services. Cost is incurred by Homebase for achieving
potential customers are cost accessibility, research of marketing etc.
 Repetition of transactions: This referred to a payment system which allow company
such as process of Homebase another transaction system help in utilization of
information of buyers and details which are ready in organisations accounts. It allow
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Homebase for information utilization which gather for original and general
transactions along with procedure of another amount of transactions to them.
 Customers retention rate: It can be measure annually, monthly and weekly. Customers
retention rate are measured with scaling of percentage amount of buyers which
individual have to retain in some period of time. Different from rate of attrition, it will
help in creating of customers life-cycle which help in procedure of calculating of main
components.
Managing and understanding a balance sheet is important for firm such as
Homebase which avail in improving enterprise financial situation of respected company at a
moment of certain period of time. While analysing information and data which are mentioned
above, they can manage various benefits out of such process which help all over growth of
enterprise (Castells, 2011). Hence, it will required for maintaining management of proper value
of customers for gaining and sustaining of consumers satisfaction.
There are various styles and methods of explanation of CLV which help in company.
This help in calculation of equation in order to learn components such as retention rate of
customers, acquisition cost etc. there are different methods which are used in calculating but this
two can optimise in a ideal way. Some of components are discussed below:
 Historical CLV: In this, sum of gross profit from whole historic of particular customer
buying from their consumer.
 Predictive CLV: In this kind of judgement, analysis over history of past transactions
and many signals which are forecast by particular for value of lifetime.
With these methods, organisation can calculate performance easily and others results are
related with long time value of their buyers which will promote efficiency of organisation,
loyalty of brand and position in market. Therefore, it is important for organisation to manage
administration with in a time period in order to manage results of operations which are applied.
P3 Factors which impact on value of consumers lifetime value
It is fact which is true that many of consumers do not create amount of revenue which
amount of income is created in a very small part. It includes attrition on a high rate which will
not lead to balance advantages for a long period of time. Hence, besides trying to earn huge
amount from buyers, earning some perfects appropriate consumers. CLV is a entire advantage
which single company such as Homebase expect their buyers to gain with enterprise relationship.
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Many ways are their for calculating the lifetime value by which raising can be earned by a
respected firm. There are different components which affect activities of enterprise, here
discussed about two major factors by which enterprise get influenced:
 B2C: It influence firm help in achieving satisfaction of consumers. Buyers loyalty
segments of consumers, value of customers and high value of Homebase in
competitive enterprise can earn which will help in increasing numbers of buyers.
Hence, this influence results.
 B2B: This having a high impact on products sales since KPI of Homebase is linked
with it. It influence to the activities of prioritising of enterprise through find out
accounts which are not fully developed. Through planning of a objectives from a long
time are searched which help in features measuring. With the help of customers
lifetime value management. Organisation can manage disputes and problems which
help in over all development.
Thus, some factors impact on CLV of company in a very effective way which can be
negative as well as positive. With these components which are important to manage, buyers
satisfaction which impact companies results in various ways. It provides brand loyalty within
customers which are creating impact of positive in their experiences which help in rising of the
business revenue. Customers retention and sales can attain with this. Hence, it claimed that value
of customers lifetime is paramount for development and growth of companies.
TASK 2
P4 Kinds of market segmentation strategies
Segments of markets is a initial step which is followed in the process of segmenting,
targeting and positioning which refer to a procedure of eliminate entire market in various
segments as per various sub groups. It is one of necessary procedure which followed by
Homebase that help company in increasing more customer access and find out clear or view to
the audiences which are target for a particular services and products (Hennessy and McCleary,
2011). This help in achieving desired amount of volumes and sales by managing various
marketing strategies. This unlikely disappear the witness, customers supports with their
preferences and traits of consumers. Some of major segments of market techniques are as
follows:
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 Geographic segmentation: In the geographic segment, customers are eliminated is being
made on the basis of location. They had divided their buyers on location basis as they are
giving services to republic of Ireland and UK. These components are used by company
for considering the components of audiences are target. It help in concentrating over
buyers impressive and styles are effective increases in results of Homebase applied
strategies and operations also. Demographical segmentation: According to segmentation techniques, companies
customers are eliminated on grounds of demographics variables like as age, family
lifestyle, income, religion and many others. Learning Homebase aspects, organisation
manufacture products for home decor, business people, family, constructor etc. It is a
store of retail mainly sold products of home, services of bathrooms etc.
 Psychographical segmentation: strategies of segment of demographics refers to a
service of product buying. It determines customers into sub groups on beliefs, motivation
and priorities etc.
STP others steps is market targeting and audience for products and services of a
Homebase. After completing of entire process of organisation, segmentation i.e. Company
determine segments which are required to depend and aim on their growth, benefits, area and
segments size. They can target stylish and fancy women with a recognition of new brand of their
products (Kotler, 2017).
After segmentation and targetting process, next step is of positioning. It defines position
of market of an organisation which are having a strong market positioning but Homebase is
facing a doom cause od certain controversies and reasons.
P5 B2C and B2B decisions making models and create of opportunities of customers value
Using of various marketing techniques which required for firm which they can help
individual company in different manners such as Homebase. Having different enterprise models
by which trading can manage in different manners. B2C and B2B are major models of enterprise
utilized for trading in various ways. Both are discussed below: B2B business model: Trade of customers are having bigger market. Concept use model
of selling products and services to customers (Schwepker and Schultz, 2015). It find out
their buyers and seller like business entities. Applicable numbers which enables
forming of relationship with their suppliers, distributes and re-seller etc. It is is a
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complicated process of purchasing while involvement of numbers of peoples (Rihova
and et. al., 2015).
 B2C business model: it will lead to conduct a transaction straightly between company
and customers. It is much emphasis on improving stronger buyer and seller relations in
sales of B2B. Process of buying is determined in a long period of time and complicated
sales which engage more time and month to finish.
Basically value of opportunities are creation depends on different components like as
stimulation, perception etc. Are explained below:
Customers perception refers to activities and actions in products of companies which help
in achieving the objectives of enterprise. It is related with different factors are wants,
requirements, personal experiences and values.
Hence, campaign is a successful one which provide a image of brand to Homease help
business in again managing and process of brand equity. With this, they look activities of B2C
and B2B are managed in a ideal way.
TASK 3
P6 Various methods and techniques by which loyalty of customer and increases relationship
It is necessary for company to effectively manage relationship with their customers by
which particular can achieve a desired results and create a specific value of brand among
consumers (Kumar and Reinartz, 2016). They are using a media and campaigns tools for growth
and sales are incremental of their products which are important for Homebase. Some of
techniques which can maintain a good relations with their consumers are given below: Response and appreciation of customers: It is a best strategies which allow customers to
achieve their expected needs and demands as per attained with a answering features for
giving customers facilities. E-mail marketing: It is a most effective strategy which make reputation as profession by
giving insights free. It presents long and short terms impacts and strategy of cost effective
help in being touch with their customers.
 Rewarding customers: By conducting strategies of consumer rewarding and potential
support with various offers of exotic, an firm can achieve desired results and made a bond
strong with consumers. It is motivating, less time consumes and better strategies which
works all time.
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Enterprise can use this techniques for making a lifetime relations with buyers which help
in productivity better of incurred operations of business. Fresh quick and effective strategies i.e.
usage of digital media which gain productivity of Homebase as it is much favourable and use
tools in modern times.
Loyalty of brand is a patterns of consumer behaviours where buyers became more
committed brand and make a buy from a particular brand. Having different strategies which used
by Homebase are as follows: Up-selling: It is a practice of promotion which is used as comparable of product at end.
This are mainly used for satisfaction increment of customers from the activities of
buyers.
 Cross selling: It is a strategies which find out services which satisfy additional
requirement with original items are unfulfilled and complementary. These strategies are
used in campaign of life-cycle, while checkout process of products.
They are using Email and SMS both in campaign for earning more amount of buyers,
products sales and customers satisfaction help in meeting of techniques which are applied for
value creation of buyers (Pearson, 2016). Hence, proper management of consumers value is
important in company such as Homebase for achieving their results and enterprise expansion in a
ideal manner.
CONCLUSION
The above report mentioned that organisation can manage consumers and their opinions
by perceiving value with a aim of delivering money for making a enterprise more strong. Values
of buyers means distinct evaluation with whole employees and advantages of product cost.
Satisfaction of buyers refer to a particular disappointment after a result of clients. Process of STP
are very important for company in order to learn aspects of customers of an business as well as
many various components. Using of various strategies of marketing which required firm can help
individual company in different manner. It is necessary to manage a relations effectively with
their customers so that they can achieve desired results and create a unique brand value among
customers.
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REFRENCES
Books and Journals
Adam, B., 2013. Timewatch: The social analysis of time. John Wiley & Sons.
Bosworth, M., 2012. Subjectivity and identity in detention: Punishment and society in a global
age. Theoretical Criminology. 16(2). pp.123-140.
Castells, M., 2011. The rise of the network society (Vol. 12). John Wiley & Sons.
Hawkins, H., 2013. Geography and art. An expanding field: Site, the body and practice. Progress
in Human Geography. 37(1). pp.52-71.
Hennessy, E. and McCleary, A. L., 2011. Nature's Eden? the production and effects
of'pristine'nature in the Galápagos Islands. Island Studies Journal.6(2). pp.131-156.
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.
Online
4 Strategies That Drive Brand Loyalty. 2016. [Online]. Available
through:<https://www.entrepreneur.com/article/286767>.
The 5 Benefits of Customer Lifetime Value. 2016. [Online]. Available
through:<https://synthesis.co.nz/5-benefits-customer-lifetime-value/>.
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