Analysis of Customer Value Management Strategies for Homebase

This report delves into Customer Value Management (CVM), focusing on customer lifetime value (CLV) calculations, market segmentation strategies, and techniques to enhance customer relationships and loyalty. The report uses Homebase as a case study, analyzing how the company calculates CLV through various components like traditional and predictive formulas, and how it leverages CLV benefits such as cost savings, improved marketing, brand loyalty, increased sales, time efficiency, and customer retention. The analysis covers market segmentation strategies, including demographic, geographic, psychographic, behavioral, and combination approaches. Additionally, the report examines B2B and B2C decision-making models and the factors influencing CLV, such as service levels, product offerings, market stability, and company objectives. The report also touches on the importance of protecting products and the influence of CLV on product identity and customer loyalty.

CUSTOMER VALUE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various components that calculates consumers s life times values.................................1
P2 Benefits of customers lifetime value to the organization:.................................................3
P3 Factors that influence the customer's lifetime value:........................................................4
TASK 2............................................................................................................................................6
P4 Types of market segmentations strategies that can be applied to a customers base:........6
P5 B2B and B2C decision making models-...........................................................................7
TASK 3............................................................................................................................................9
P6 Different techniques and method organization applied to increase the customer relationship
and loyalty of customers:........................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Customers Value Management is the process where an organization increasing their consumer's
via online procedures. Customer’s value management is art which increasing buyer's
individually. Their main to retain customers’ long time. In this Homebase company used
promotions procedures which help to retain customers’ long time. Company measured via emails
only few customers attract with company and through the SMS services which consumers attract
most. This report will include the different kinds of process that comprised the computing of
CLV and their profits This report also comprised the divisional of segmentation process that
can includes consumers base business-to-business and business-to-consumers decisions making
approaches or customer’s value creations and various techniques and methods organizations
can apply to increase customer’s relationship and customers value (Christopher,2016). The main
motive of this report to defines how organizations use procedure and promotions which
increasing more customers and attract consumers to the organizations.
TASK 1
P1. Various components that calculates consumers s life times values
Several methods and components help to calculate customers’ life times’ value. It
includes the traditional and simple formulas. Moreover, CLV also predictive and historic which
depends on the database used. In Homebase Company predictive CLV helps to allow how much
revenue consumers will generate in business over the course of the customers' relationship. This
process helps to use transactions history and behaviour determines the current value of buyer's.
In other hand historic CLV is calculations of all profits from consumers s past purchases. This
calculation exists the consumer's data from a specific period of time..
Basic buyer's 's lifetime value formula:
Simple CLV component:
In the Home-base the most basic formula determines the revenue earned form the
prospector's. This annual gross calculated middling bespoke'
(yearly cost of the each customers * customers relationship in year)- Customers acquisition cost
Example to determine the calculate CLV simple formula in action:
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Homebase Company create $5,000 each annual consumer in middling 5 year $5,000 for each
consumers. Company calculates CLV like this:
$3,000*10-$5,000=$25,000
CLV makes easily transaction and calculations and justify the sales and marketing budget
required to land new customers in first place (Cooper, 2017).
Traditional component- In this formula home base mainly gives discount to their
customers and then calculates the all over cost of the company. Method helps to discuss about
the to gain more details and understand to consumer lifetime values In details consumers life
time creaked the values and benefits of annual. Some point helps to calculate these methods :
 Consumer's Retentions
 Averages Gross Margin Per buyer's Lifespan
This traditional formula defines customers’ income, period or all inflation. If the Homebase are
nevrs idea to firm will give discount deals In the business and also not understand the exclusive
deals which come out with discussions.
Mainly the Homebase is decoration firm which provide tailored to most of the decorations
products. However, Homebase ensure main thing is to calculate all the cost of yearly and also
find they way which customers retain long time. The most excellent idea to calculate the cost of
the company to examine the rates of products and how many client's used products of the
company. Components of customers lifetime value help to increasing the home base bespoke
rates and also increasing revenue of the company. One more component helps to calculate the
CLV-
Estimate CLV- Formula help to understand the firm benefits and their total revenue of
enterprise. $60 and 20% have possibility to repurchasing and in the last values of $12 to per
consumers. In this process the final values are accepted form the per consumers with the limited
can be parted in like $60(2-0.1) and minus returned purchase of the total revenue This will
help to determine the the total values are measured per annual (Fitzroy and et.al., 2016). This
also defines the calculations of all each customers and average value.
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P2 Benefits of customers lifetime value to the organization:
Benefits of CLV define the amount of profit and make from one consumer as they
purchase products or services of CLV. It’s simply when organization uses promotions products
target to long time consumers buying plan . In homebase profit of customers lifetime helps to
relate the cost of the company also helps to increasing the customers retaining processing.
In homebase benefits to CLV-
 Saving money – In this Homebase try to retain old customers and also find the new
consumers. When home-base know what prospectors demands them and they only focus
on that resources. Homebase finding new customers to provide quality products and also
gives advertisement on television, newspapers social media etc. benefits from that
Homebase find new prospects and increasing growth of the company. To find new
customers Homebase also den free emails customers and provide details of the company
with products and services.
 Better improvement- To improve benefit in Homebase, company try better marketing.
Mainly CLV leads to marketing to focus on consumers. Homebase make better procedure
which marketing of company and customers attract to the company. Company appoint
sales man which do marketing door to door and consumer know about the Homebase
products.
 Encourage brand loyalty- home-base provide their customers to better quality products
and they regular contact with consumers s. Mostly the consumer regularly buying
Homebase product and they know about the brand of the products so buyers become
more loyal to company.
 Gain more sales- Homebase know about sales and about consumer's test this from
regular with buyer's through emails SMS. Moreover, most important things are customers
attract most of the SMS service because they know about the latest product of the
company and discount deals via SMS. Save time- This is one of the benefits of CLV, Homebase concentrating to target market
and loyal customers. Home not wasting time to gives advertisement and other ads they
simply send the emails and SMS service of the consumers ss. In accordance to this home
save time to provide details to the customers. Company send SMS to their consumer's
and give specific details and also about the discount and offers on the products.
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 Retain long customers- In home CLV helps to retain customers long time. They have
techniques to increasing and retain customers. Home-base provide their customers to
details through emails, SMS and other procedure. But home-base examine the SMS
procedure help to retain customers mostly (Flint and Woodruff, 2014). Because via SMS
customers accepts personally details about the company their products, services etc. form
that home-base retain their customers long time also having benefit to find new
customers.
 Return investment- the organization have main aim to attend return investment from the
customers like they have ability to maintained each consumers needs and the firm want
to consumers to make investment in the organizations.
P3 CLV factors
The ClV includes the details about the organizationals goods and their total values. CLV
also defines the products home-base and their service level. The aim of Home-base company to
retain customhouse long and also find new customer to the company. The many components
influence to the customers' lifetime value. Most of the factors helps define total revenue of firm
the goods which ordered organisation and also adopts much kinds of benefits of firm Home-base
Here are following factors that influence customers lifetime value-
 Service and promise levels- Home-base company supply various goods which deliverd
firm to consumers such as garden, furniture, cooking appliance etc. home promise to their
customers to provide better quality product and home-base also ensure the things that
product which they provide to the customer is according to the customers satisfactions or
not. And also ensure the customers satisfied form the products or not. Home-bas also
promise to their customers if any conditions products are effected and company promise
to the customers they will change the products soon and also return new products. This
strategy make company profit and also make profit to the organizations.
 Product you sell- In CLV home-base determine the product quality and what demands of
products in the market. They ensure each product are suitable to customers needs. Home-
base also ensure which product they provide that have longer life (Goetsch and Davis,
2014). In this factor also determines the cost of the products, home-base mainly gives
their customers to low to higher quality products and products are home improvement
and decorations.
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 Market stability- that factors influence to the target market the certainty developed
market procedures and latest techniques it very hard to established behaviour with
consumers the competitors provide better quality product sin the market and they attract
most of the customers. And some old companies also used these techniques which really
grab the customer's loyalty. In CLV homes base try to developed new procedure
according to their competitors they make stability in the market and retains customers
long time.
 Company objectives- Company main objective to supply better quality products and
examines which methods to customers attract most. In home-base company s they have
take decision helps adopts the benefits compute the cost of company. The firm will to
provide better facilities products and 6% company retain their customers mostly and 9%
home-base sell quality products to the company. Mainly the company objectives based on
organisation growth and their tools which affects company popularity. They also define
the main rate of company. In addition, home-base company main objectives ensure the
company popularity. And also make sure each products are overlap to the company.
 Protect products-this factors defies the home-base protect their products form their
competitors because they provide quality products to the customers home-base have
trademarks which is defines that products is home-base. CLV influence to company
products because they have identity products their customers cannot copy the products. s
(Kelly and et.al., 2014 ).
TASK 2
P4 Types of market segmentations strategies that can be applied to a customers base:
Segmentations is refers to dividing the market of potential customers to different groups
and segmentations. Those remembers of groups have similar characteristics. In the
organizationals promotions are made for different kinds segmentations. Like demographic,
geographic, psycho graphics, behavioural, combination strategy. In the segmentations of market,
target market used the first process of selling goods and service. Those segmentations help to
maintained the target market and consumers needs which is according to demands of customers.
Customer are make trust worthy business which is allowed to maintained all kinds of possess the
targeting and positioning are gives benefits in business and retain consumers as well as. where
products and services which is most achievable Those segmentation helps to loyalty better
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customers experience. Like niche marketing and loyalty. In home-base company marketing
segmentation mainly based on what customers demands and according to need of customers.
Types of marketing segmentation strategy-
 large segment strategy- In home-base organisation when segmentation are lees process
in marketing The home base has made decision to changes large strategic business
When customers demands are increasing where organisation segmentations in large
platforms they provide each customers to according to their group. That strategy applied
to customer's. Base because each customers adopts this strategy.
 Adjacent segment strategy- this determines on full marketer. Like home-base company
provide their customers to higher price product in lower price.
 Multi-segment strategy- In this home base company provide their customers to multiple
products with different techniques. Some customers which are not come to purchase the
products form the store company provide them to home delivery service. And some
customer which are not understood the product quality company provide proper details
for those customers.
 Small segment strategy-when Homebase have limited resource when company decide to
small segment and they ignore large competitors. They using mass marketing and large
resource strategies. In case of home base company when customers attract to purchase
their product and that's very expensive and limited resource they provide their best
resources to that company to buying that product.
 Niche segment strategy- in the niche marketing segmentation that segment is very hard.
Numinous comparison are comprised to demographic or usage behaviour. Niche
marketing target sufficient numbers of customers and that strategy avoid the direct
competitions with large organisation (Keyte and Locher 2016). In home base this strategy
helps to understand the benefits from a good and service. Home-base also segment those
customers which are demands high quality products and those are only few customer's
comes in year.
 Sub-segment strategy- In this segmentation there are meaningful difference in
customers needs. This segmentation strategy helps to understand the difference type
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customer have different demands. All customers ask their value to the customers base
organizations. For the example if person go for office delivery and they see the food are
standing on the floor and consumers are sitting with air conditioned. Food remains the
same but price different.
P5 B2B and B2C decision making models-
B2B decision making model- business-to-business making models refers to selling goods
and service between organizations to another organizations In other hands in customer value
management organisation delivering their products and services to one organization to another
organisation they exchange goods and service via online and offline both methods.(Stark, 2015 )
In home base company they also apply business-to business model because the small
organizations demands goods and services to home-base they provide own goods in retails price
and they start business those products. In this model they give customers to different kinds
variety service and also gives different kinds of products which is used in daily routines. Home
base also provide their customers to e-commerce service like flip-cart, amazon, mantra etc.
home-base supply their goods e-.commerce organisation and earn products their aim to provide
good and service in retails and attractive prices products. Main advantages to selling products
one organisation to anther organizations products popularity increase very much an also their
quality are accepts many customers. This model mainly relates to e-commerce where business
can improve their growth via e-commerce platform. In organisation. This main aim of this model
to increase business efficiency and revenue of retailers (Kumar, and Reinartz, 2016). It also
adopts various marketings conditions and advantages to improve better sale in the context if the
other organisation.
B2C decision making model- in this model organisation supply their goods and service to
consumer directly. This model mainly applied to customers. In this model customers playing
main role, company communicate and conduct business transaction with customers via internet.
This model include the online banking service, auctions, travel service, health and real state sites
etc. home-base mainly apply this model process where they selling products to customers via
online or offline. Home-base provide different types of service which are-
 Direct sell- in this such retails organisation directly sell their products t consumers via
website. They divide their seller indirect sell and manufactures. In home-base company
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they also selling their products direct consumer and earn profit. Company also make sire
they provide only quality products to their consumers (Töytäri and Rajala, 2015).
 Advertising based–In business-to-consumers model include different kinds of
advertisement methods which attract customers. Home-base company offers a free
service to consumer use advertising revenue to cover cost. Company mainly gives ads on
social media and all promotion all sites which increasing cost of the company and also
make growth. In personal home-base also send SMS to their old customers to provide
details for the service and also retain them to long time (Porter and Kramer, 2019).
 Online intermediaries-this refers to same functions as agents. In this process business to
consumers model agents offers the service to sellers and process to setting a price. This
process help to home-base company offer their customers selling their products and earn
again they also provide better intermediator service which is suitable most of the clients.
In this customer's directly interact with organizations and ask to selling their goods and
distribute profit as well. The main motive of this process to increasing customers also
include the customers chain which is supplying products to each other.
TASK 3
P6 Different techniques and method organization applied to increase the customer relationship
and loyalty of customers:
Coberd in PPT
CONCLUSION
The report has been concluded about the customers value management is the art where
organization increasing their value individually. In this above report defines how home-base
company increasing their sales via online and offline medium (Womack and Jones, 2015). In this
report also includes the organisation competent defines the calculation of the CLV and benefits
of CLV. It also includes the type of market segmentation that can be applied to customers value.
And B2B or B2C decision making model or various method and technique which increasing
relationship between customers and organizations and customer loyalty.
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