Customer's Value Management in HomeBase Company : Report
Added on 2020-06-06
13 Pages4399 Words55 Views
Customer's ValueManagement
Table of ContentsINTRODUCTION...........................................................................................................................1P1 Various components that enable an organisation to determine and calculate a customer'slifetime value...............................................................................................................................1P2 Benefits of customers lifetime value to an organization........................................................2P3 Factors that influence the customers lifetime value...............................................................3TASK 2............................................................................................................................................5P4 Types of market segmentation strategies that can be applied to a customers base................5P5 B2C and B2B decision- making models and how opportunities for customers valuecreation can be applied................................................................................................................6TASK 3............................................................................................................................................8P6 Different techniques and methods organization can apply to increase customersrelationship and customer loyalty...............................................................................................8CONCLUSION..............................................................................................................................10REFERENCES .............................................................................................................................12...................................................................................................................................................12
INTRODUCTIONCustomer's value management is an effective activity which helps in increasing clientvalue in company. Basically the main aim of this is to measure monetary as well as loyalty ofcustomers within the company. With the help of this, company increases their profitability leveland at the same time, it also influences customers to retain for long time period. For this, it ismanager’s duty to serve quality products and services to customers in order to attain theirsatisfaction level (Hammer, 2015). By this, company easily eliminates the chances to shiftingcustomers to other brand. Mainly, CVM focuses on creating value for customers and attaininghigher profitability level in an appropriate manner. For retaining customers, it is important forthe business organization to understand them. It helps in capturing relevant data and also, inenhancing customers lifetime value. Present report is based on HomeBase Company whichprovides broadcasting services to its customers and wants to increase their sales by 20%. Thisreport includes various factors which directly affect the customer’s base and retain them for longperiod of time. In this company make effective decision making model which helps in attainingbenefits form segmentation tactics. Along with this different techniques as well as model alsoused by company to increase customers relationship in appropriate way.P1 Various components that enable an organisation to determine and calculate a customer'slifetime valueHomebase is a broadcasting company which provide SMS services to it customers in gettheir better satisfaction level. In this company use customers lifetime value tool in order toforecasting of value to determine the better relation with the customers. Along with this CLVshould be define as a periodic value which stated that estimated a relationship of 12 months andits value will be £x. By this company easily assess the customers retention rate within theorganization which leads in improving the performance level of the company at market place.The main aim of using this tool company easily maintain as well as build better relation withcustomers which leads in generating ,ore revenue in appropriate way (Hollensen, 2015) . In thiscontext there are some various components which used by Homebase to determine customerslifetime are as follows:Present Value: It define as a effective process which shows customers footfall towardsthe company products. Basically it is a discounted value which show future cash flow1
which get by the customers. It cover time value of money which leads in retaining thecustomers for long time scale. Basically CLV include periodic value. Mathematical formula: Under this, professional considered CLV as a monetary pricewhich calculate by using mathematical formula which helps in providing accurate value.It include a formula which is Total revenue ÷ number of months since customers joined.It define that average revenue which generate by customers (Kerzner and Kerzner,2017). Along with this, company generate revenue by its customers to improve theirprofitability level. It is more useful component which determination of CLV in order toretain their customers for long time period. Customers Loyalty: Basically customers lifetime value depend on customers loyalty.With the help of this company easily determine period of customers retaining. In case, ifcustomer is loyal than they connect with customers for long time period. It will increasecustomers value within the company. On the other side, if customers are not happy aswell as loyal with company which reduce profitability level of the company. Individualized CLV: If company calculated broadly than company does not getprofitable. On the other side if company calculate as per individual which define clearpresentation towards the customers value. It is associated with customers lifetime value.Cohort Analysis: Cohort can be said as a group of people in which person shares samefeatures and characteristics. It take less time which analyse of individual user. It definevarious variations that directly affect the customers lifetime value in order to attain betterrelation of them (Kim and et. al., 2015).All these components are helps in increasing customers base within the organizationwhich leads in increasing overall profitability of the company.P2 Benefits of customers lifetime value to an organizationNow day's CLV get increased and gained so much attention form various corporations. Itis more important for business organization to increase their profitability level by increasingcustomers base. Along with this, customers value helps in building goodwill of the company atmarket place by delivering quality products and services in effective manner. With the help ofthis company get competitive advantage in appropriate way. In this context there are somebenefits of customers lifetime values are as follows:2
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