Customer Value Management Report: Analysis of Homebase Strategies

This report provides a comprehensive analysis of customer value management (CVM) strategies, with a specific focus on the Homebase company. It begins by defining customer lifetime value (CLV), detailing its various components, and outlining the benefits it offers, such as increased market share and financial growth, while also acknowledging the factors that can negatively impact it. The report then delves into market segmentation, exploring different types and their application, along with the decision-making models in B2C and B2B contexts. Furthermore, it discusses methods and techniques to enhance customer loyalty and relationship building, offering insights into how Homebase can optimize its customer-centric approach. The report concludes with a summary of key findings and recommendations for effective CVM implementation.

CUSTOMER VALUE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different components of customer's lifetime value...............................................................3
P2 Benefits of the customer lifetime value.................................................................................4
P3 Factors impact the customer lifetime value...........................................................................6
TASK 2............................................................................................................................................7
P4 Various types of market segmentation which can be applied................................................7
P5 B2C and B2B different decision making models..................................................................9
TASK 3..........................................................................................................................................10
P6 Different method and techniques which need to increase the loyalty and relationship.......10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Customer value management is considered as measure of the company's view which is
perceived as value of money for having an delivery of effective money which is towards the
buyers. Even though it is also known as customer value added approach. It can also be said that it
is a art of increasing a value of customer in individual manner (Hammer, 2015). This is
something which mainly design and also prepare the company which do highlight the major
business operation and functions too that has an direct affect with company profitability and
productivity as well in better manner. Main feature with the particular concept is there which do
aid firm for determining and having an examining of the vale of customer and lead to concentrate
on not having an proper amount of resources for making an competitive advantages. The report
is that which is based on Homebase and discussed in this project as well. Moreover, main thing
is to measure the different thing and also lead to evaluate the lifetime value of customer and also
has increase advantages which will be discussed.
TASK 1
P1 Different components of customer's lifetime value.
In market there is a huge competition, even though customer relationship with company
does play an effective role which do help in having a income and revenues in better manner.
Basically, there are large number of people who are loyal to a single Brand and they are major
source of earning for company but it also have an impact as scarce in quality as well. Therefore,
the company do bring many policies and strategies which do help firm to produce better decision
so that they can gain the competitive advantage and can also attain the goals and objectives in
proper way (Nyadzayo and Khajehzadeh, 2016). Hence, the firm Homebase is company which
also serve the SMS facilities to customer and satisfy them with services and try to gain the
maximum market share in great way. It is something that lead to earn higher profitability as well,
approaches and concept is such which do help in having an customer lifetime value that is used
by the firm for having an effective values and it also lead to maintain some a better relation with
there desired relation in right context too. It also includes the CLV scenario that describe the
periodical values which do declare some of predicting 12 months relationship with the
determined value that will be £ x. moreover, this is such which do help in retaining consumers
for longer period. Normally, this is such which do help in attaining the good amount of

profitability and revenue in right context. Hence, some of the components which is used for
measuring value as:
Present value:- This is such which leads and relates to customer point of view with the
firms goods and services. It also shows the value of discount and represent the cash flows which
is acquired by consumers in effective way. Therefore, it acquire the money time value that aid to
have an retain of customers for longer period. It needs to include the periodical value too.
Customer loyalty: Basically, CLV is such which is dependent on consumer loyalty.
Even though such criteria help in handling and to retain for long period of time. Having an
loyalty by customer which assist the entity to earn survive in market (Pearson, 2016). This
aspect is that which help them in having an competitive advantages of entity and also lead to
have a reduction of company income and profitability as well.
Cohort analysis: It is that which sign toward large group of people who do share some
kind of similar features in effective manner. It can also aid to look for different situation who has
direct impact on CLV and also lead to maintain and develop the various strong relationship with
desired buyers as well.
Mathematical way: It is which also determine the customer relationship value (CRV)
and it is in terms of the monetary prices and will be considered with having an assistance of
mathematical tools as well. Moreover, formula is that which include the financial gain of the
firm and having an separation of such with large number of time period too and it affects when
the large consumers are connected with the organization too. Generally, the Homebase is that
entity who motivate and influence the customers to buy there innovation and creative products
and services in great way. Even though, it also has an helpful which do have an effectual
component that help entity to analyse the relationship value which make firm to retain there
customer and attract future prospect as well for the longer period of frame too.
Personalised CLV:- Measuring the CLV on basis of broad sense and with this they do
not get much to, at that time firm do lead to determine value on the basis of individual and it can
also lead to have an point of demonstration towards the customer measures too.
P2 Benefits of the customer lifetime value.
CLV is such which do provide the number of various advantages and having firm or not
needs to have an gaining of some attention and having an more customer towards the services
and facilities too (Khodakarami and Chan, 2014). Moreover, having an helping of this even firm

is such which do create an strong image effective customer base that do easily generate the huge
income. Therefore, CLV concept is that which do aid in having an positive image at huge market
and it also help buyers in having an purchase of different type of products and services too. Even
though, it is required to ensure that company is such which do survive in market to have such for
the longer period. Various types of customer's lifetime value is there which needs to be described
as:
 It increase reputation in market: Basically, Customer relationship value is such which
do assist in developing and lead to build an positive image of organization in this huge
market. Generally, this will help in revamp and maintenance of the goodwill which
somewhere also help in attracting the large number of customer in right context as well.
As a result, it is such which do help in having an increase market share which do lead to
survive for the long term period in great way (Hill and Alexander, 2017). Even it is
required by company to bring effective strategies which can help them to earn higher
profits and to provide an advantage or opportunities to serve millions of people.
 Profit and ensure the maturation of organization: Technology is such which do play an
effective role and it is having an concept of customer value relationship too. Moreover,
company needs to develop and has to update the latest techniques and method is such
which needs to gain the customer's attention in proper way. Homebase firm should have
an upgraded technologies that needs to provide the effective and having an innovative
services to buyers as well. Therefore, it also leads top adopt the concept of marketing in
which they can be used by having some developing and maintaining new ideas in better
way. Entity, it is that which needs to require to have an expansion of there business
operations in any other location as well where they can have an gain high amount of
income in right context.
 Financial growth: Major feature of CLV is such which do help the firm for making and
having creating the better relationship with the buyers in great manner as well. Moreover,
they will also ensure the customer loyalty which do help them in retaining the given
period of frameworks in right context (Choudhury and Harrigan, 2014). Factors are such
which do lead to have an sign off finances that is invested with in effective business
transaction and having an production procedures as well. Therefore, having an it will
assist some improving and maintenance of manufacturing process that help in satisfying

the customer demand and requirement as per there result, although they can also analyse
the appropriate financial growth of enterprise.
 Assist in retaining buyers: Customers are considered as asset and they do help in
making and creation of high amount of profit value as well. Basically, those individual
are those who buy various goods and services for having an satisfaction of there wants
and requirement too. Concept of CLV is such which do assist firm manager for having an
recognising for features which do adopt the gaining attention of various customers (Xu,
Peak and Prybutok, 2015). Along, with this, it will also assist in company which do help
in retaining the consumer for long period of time and deliver competitive benefits of
enterprise.
Customer lifetime value is such which is used by firm and having an identification of
upcoming opportunity for having an expansion and maintenance for having ans strong relation
with the buyers in great way. Moreover, concept is such which do aid in firm and it also
gathering and also collecting relevant and correct data that is related to customer's. Basically in
this it will assist as managers of company for having an taking better decisions as well that will
increase the income of enterprise in proper way.
P3 Factors impact the customer lifetime value.
The CLV concept is an broad term and having an direct affect and also lead to large
number of elements and also lead to have some time that will affect the company ability and
capability in negative way. Basically, Concept is such which do consist of determining customer
life that need to offer different type goods and services as well in right format. Homebase is
having an various tools and techniques which is somewhere known for its customer value
management for enhancing organisation income and profits too (Weinstein and Pohlman, 2015).
Moreover, there are different kind of factors are there which have an affect on CLV which will
recognise the factors in negative way and to have an component of CLV which can be reduced.
Various factors are there which lead to impact on customer value management that is somewhere
described as:
 Need of professionals: In this, firm is having an signing of lack of expert which do carry
out the measurement and having calculations as well which is somewhere related with the
maintenance of customer relationship value. Therefore, non accessibility of professional
outcome is such which can be calculated with in correct manner and also lead to have an

impact on decision making of procedures too and it has negative impact of entity
profitability.
 Lower participation in product categories: Wrong measurement of CLV result in
reducing the elimination of the product and quality according to the customer needs and
demand in better way. This is such which will lead to decrease the market share of firm
and it will also complex with firm and it will survive in large market place (Stark, 2015).
Moreover, lack of skilled employees are those which do create the problems and having
an completion of enterprise and its functions as well in appropriate manner.
 Online and offline channel: Even though there are large number of advanced techniques
and methods of CLV which do assist entities as well to have an increase of skills and
abilities as well of the staff member for having an development of capable thing which do
survive of different thing in this competitive world as well. Thus,it can be considered as
essential for the firms and make an development of different online and offline situation
sources which do lead to have an effective decision making process for having an
organization which can lead to towards for optimising usage of firm resources as well.
 Challenging to measure: Having an assistance of professionals which is a very complex
and company has to make an analyse the examine for having an amount of customer
value management. Moreover, there are different kind of components which has an direct
affect on decision making procedures in all optimistic and pessimistic manner. Basically,
straight computation of CLV is very much complex and due to modification in which
changes can take place within business surroundings.
M1.
The concept of Customer lifetime value is such which leads for the company as this is
such which help company for the longer period as customer make firm to earn higher profit for
the longer period as they become existing customer too. Even though collecting the customer
data thus help them to provide the product and services according to there requirement and can
make them satisfied as well. CLV has to be done in right context which does make them to have
an proper working in organization. Whether it is a case of B2C and B2B.

TASK 2
P4 Various types of market segmentation which can be applied.
It is such concept which is having an process which do divide the market and the
customers which needs to large the groups which is based on the characteristics as age, interest,
level of standard etc. and some more as well (Schwepker and Schultz, 2015). Along with this,
there is an assist of firm which is being selected with the specific segmentation and somewhere
also offer there effective and efficient product and services to satisfy consumer. It is such which
is not having an enhancement of number of firm income and profit as well with time in which
firm will easily retain the customers for the long period of time. Company manager is such
which needs to analyse the identity of an individual who is paying of to firm for the goods and
services and leads to buy different thing that satisfy there needs and wants with desires too.
Customer value management is all about managing things in appropriate manner as per
segmentation process in order to gain trust or loyalty of maximum range of clients (Weinstein
and Pohlman, 2015) .
Apart from this, procedures is such which carry out the company manager and having an
increment of income and revenue. Segmentation should have chosen the thing which needs to
maintain and also manage the growth of organization in effective manner as well. Moreover, for
the help of company, it is required to generate huge amount of profit in effective manner too
(Rihova and et. al., 2015). Generally, process of having an segmentation of market and they also
lead to have an different type of goods which can lead to help them in making of high amount of
income too. There are three steps which is as:
 Segmentation: It is having an pioneer stage in which company can also lead to determine
and identify the customers behaviour as per there needs and wants in order to maintain
the customer value management in effective way. This is such which needs to sign off
there are various things and services with facilities which is having an offer to fulfil the
requirement and needs of buyers and also lead to which try to attain and retain the
customers for the longer period as well. For having an selection of specific segment, even
though it is very much essential for the Home-base thing which needs to determine the
growth and success of potential segments (Xu, Peak and Prybutok, 2015).
 Targeting: Basically, company is such which choose the one or more then one segment
for offering various thing with services and facilities. Even though, it is quite necessary

for the company and it is such which identify creative and attractive segmentation for
creating large number of income and profit as well.
 Positioning: The firm is such which will offer some of the effective goods and services
in which buyers are those that satisfy the needs and having an accurate needs and demand
of the customers as well which help in getting the exact position in the mind of people.
Segmentation is being done on the basis of these point:
 Demographic: It is such which do form the segmentation which is somewhere based on
the various factors that include age, caste and religion of people (Pearson, 2016). This is
something which leads to gathering and collection of the high amount of data about the
country population in proper way with features. Along with this, it also play an essential
role in having an manufacturing process in right context. Organization is such which do
provide the effective services and facilities to there customers according to the demand
and needs that help to satisfy in effective way.
 Geographic: Segmentation procedures, it is such which also take place in with different
component which do include region, areas and state which do lead to have customer in
which they can easily survive. Home-base offer and serve which do have an effective
services of SMS in which college going students. Moreover, some of the major
advantages are there which has an different type of segmentation in which it will aid to
firm in generating the large number of gain in terms of finance (Kumar and Reinartz,
2016).
 Behavioural: It is also considered as the type of segmentation too in which different
customers reports and having trend for analysing the company in which examine is there
of various product loyalty and having an major factors too.
P5 B2C and B2B different decision making models.
Even though, decision making is such which is considered as the essential part of every
entity. The manager of the company is such which lead to recognise the determine the element
and having an direct affect with desired operations. Apart from such, business decision is made
and lead to have performing in effective functioning as well. In organization, B2B & B2C is
setting up enterprise which do help in taking decision in right manner as well (Kotler, 2017).
Moreover, effectiveness with efficiency and needs to develop some strategies which do help in

making an proper decision making process too. Different model is such which is related with
decision which is used by B2B and B2C.
Decision making models B2C B2B
Rational and classical model It is such which do help in
making an proper decision in
proper way. Even, decision is
related with the business to
consumer and having an
assistance of rational model. It
is such which do assist in
defining the clear issues which
merely occurs in firm.
Moreover, it is such which is
useful for indicating the better
goals and targets in effective
way.
It is such which has assist in
business that implement the
business operations and having
an functions. Basically, there
are various kind of element in
which decision can be made
and determined. Along with
this, there are different kind of
useful big organization are
being there too.
Administration or bounded
rationality model
In such, decision making
concept is such which address
the goals that somewhere help
in revamp of entire business
performance. Major options
are there which needs to
analyse the decision making
which has an effective
decision. B2B is mainly
consist of the alternatives, so
this is such which needs to
achieve the goals and
objectives in right context.
B2B is such tool and technique
with method which can be
used by the higher authorities
for reaching the desired goals
and targets in right context.
Basically, certain thing are
there which has an aid to take
accurate decisions as well. A
company is having an large
number of opinions which do
have chose in appropriate
manner.

Hence, firm is such which
should have an effective
decision for having an proper
profitability in income of firm.
M2.
In market, it is quite complex to make an segmentation but it is like which do also help
company to target and focus on particular area and thus firm do make segmentation on the basis
of various factors which do result into having an proper working as well. Even though B2C and
B2B is such which also create an market intelligence for having an effective customer value
creation in right prospect. Even though they also use various decision making models for having
an effective working as well that can help in earning higher income too.
TASK 3
P6 Different method and techniques which need to increase the loyalty and relationship.
Become in involving sector, Homebase is such which do offer various types of facilities
are there in which services to customer may lead to have satisfaction of demand and needs of
such for the longer period (Kotler, 2015). Apart from such, proper services are there of firm and
it is increasing the number of facilities and it will assist in remain competitive advantages in
business criteria. Basically, it also lead to have an getting of the high level success and growth is
there. Moreover, it is needed for entity to make and create strong customer base. Along with this,
client commitment is such which also render the large number of welfare of entity.
Homebase, of the different kind and types of services and facilities for having an
customer loyalty as well. Basically, there are various number of tools and techniques which is
used by entity for revamping customer relationship in proper manner. Various techniques and
methods are there which needs to be used for having an increase in customer loyalty for an
organization:
 Emails: It is considered as the most effective and accurate method which needs company
in having an maintenance and also create good relation with customers in effective way.
Basically, firms can send the emails in which interaction with their target do take place.
Even though, it is a electronic services which do provide an facilities of mail which needs

to ensure the instant delivery of different message from one person to another (Kim and
et. al., 2015). Therefore, customers are those which do give revert for his/her mail in
which increasing level of satisfaction is there which do develop the loyal towards
organization that offer and deliver services.
 SMS: It is another form of technique where a person does send text and messages to
party. This is quite one of the main feature which is simple and can be used by each
individual and it also lead to have no requirement of certain internet services in effective
way. It is such which do assist a person in maintenance and manage the strong relation
with customers.
 Internet: In today's scenario, various number of person is there and it will use internet
and having an different social networking sites which do include Facebook, twitter and
YouTube. It is such which make connection with other people and also interact with them
(Kerzner and Kerzner, 2017). Moreover, having an assistance is such, in which social
networking sites of firm is such which make huge number of person and also inform
about the goods and services in effective way.
M3.
There are various method which is being used by management of the company to have an
better relation with the customer although this also make them to provide products and services
according to there requirement too. Hence, with the help of such a perfect decision making can
be seen in organization.
D1.
According to Stark, J., 2015, says that customer value management is such which make
company to work according to the requirement of the customer in great way and thus, firm has
performed various activities in great way which resulted in earning of higher income in right
format too. Basically customer lifetime value means to have an value of money the customers are
paying off in great way as well.
CONCLUSION
From above report it can be concluded, Customer Value management is such which use
the techniques and different method which needs to evaluate and measure the organization
customers views and perceived value for delivering the effective money towards the competitor