...study of “CustomerValue Marketing” starts with introduction section. We have mentioned the contents of the study in objectives of the report section.
The methodology section deals with the means of preparation of this report and the processes that we have followed.
Then the report describes the theoretical aspects of the study in the literature review. This section mainly consists of brief description about different important topics about customervalue marketing.
Finally in the last section, the report is concluded with findings, bibliography and appendix over the topic. The appendix section contains some International Journals on Customervalue marketing.
Today’s marketing process is highly customer focused. It is all about creating customervalue and building profitable customer relationship. Customers are at the center of marketing process. The main theme of marketing is to create customervalue and to capture value from customers in return. The goal of every marketer is to create more value for customers. Customers usually face a broad array of products and services that might satisfy a given need. Among these products or services, customers have to choose the...
CustomerValue: Transform Your Business & Increase Profits
Best Practices Seminars in Optimizing the Source of Value Creation
CustomerValue is a Business Predictor
Total CVM Seminar 9 a.m. – 3 p.m.
Monday, Sept. 19, GGU 536 Mission St, San Francisco
“The CustomerValue Management (CVM) score is a leading indicator of Vodafone’s market share. We were able to predict market share, a quarter out using CVM data, to within 1% accuracy! And it predicted churn accurately. In fact our Finance Director said ‘the CVM score is more robust than any of our financial scores.’” - Graham Maher, Managing Director, Vodafone
CustomerValue Creation Seminar 9 a.m. – 3 p.m.
Tuesday, Sept. 20, UCB Ext. 1301 Shoreway Rd, Belmont
CustomerValue Measurement Seminar 9 a.m. – 3 p.m.
Thursday, Sept. 22, U Phoenix 3590 N 1st St, San Jose
CXO Breakfast 7 a.m. – 9:30 a.m.
Friday, Sept. 23, U Phoenix 3590 N 1st St, San Jose
Pricing Seminar 10 a.m. – 3:30 p.m.
Friday, Sept. 23, U Phoenix 3590 N 1st St, San Jose
What is Your Company’s Value to Your Customer?
Few companies know the lifetimevalue of their customers, and more importantly, fewer still know how much customers...
...Harvard Business Review Case Study :
The Customers’ Revenge by Dan Ariely
As an introduction of this case, a little recall of the facts may not harm anyone.
Atida is a 70 year old motor company, producing and selling stylish and innovative cars and they have just launched a new one on the market : the Andromeda XL. The brand has many loyal customers and devoted fans among various clubs and communities.
Jim MacIntire and his colleagues from the customer service department have tried to enhance their operations by implementing various methods : For instance, the company offers comprehensive warranties, a special credit card rewarding customers with presents, and a new call center was implemented a year ago in India in order to answer customers’ phone calls. Despite such improvements, customers keep complaining, sending angry letters to the customer service and customer’s satisfaction seems to fade.
As light is shed on these elements, one could wonder what could Atida do to deal with the unhappy customers ?
First and for most, the company should deeply change the way it handles customers’ complaints. They are not ennemies, they have spent a lot of money on one (or several) expensive car(s), sometimes they are truly devoted to the brand and are huge fans of it; Therefore they are entitled to be treated with consideration,...
Team No. 8
HubSpot is faced with the problem of whether they should cast a wide net to attract a diverse customer base or whether they should narrow their focus to a particular target market. We recommend HubSpot target both Owner Ollie (OO) and Marketer Mary (MM) market segments, rather than focusing on a single segment, in order to accelerate growth rate and increase profitability. We approached this problem holistically by blending our financial analysis with HubSpot’s proven success in increasing market share and providing quality service to both customer bases. We recommend this broad strategy in contrast to focusing on one segment, as suggested by Mr. Roberge, as we found no convincing evidence to support relinquishing command of such a diverse customer base.
Our recommendation is based on our quantitative comparison between OOs and MMs, evaluating break-even time, customerlifetimevalue in relation to acquisition costs, and projected growth. Comparison of break-even time favors OOs (3 months) over MMs (11 months; Exhibit 1). However, customerlifetimevalue (CLV) heavily favors MMs ($11,125) over OOs ($5,314; Exhibit 2). Our analysis finds that OOs produce positive cash flow faster while MMs produce higher long-term profitability. Furthermore, the aggregate CLV of the current customer base shows...
...Managing the customer lifecycle is the last activities in primary stage of CRM value chain. This activities involves customer acquisition, customer retention and customer development. However, why the companies needs to focus to customer acquisition when the cost involved in customer acquisition is high rather than customer retention?
We know that even the most customer-centric company like amazon.com can't assure its customer to be royalty to them forever. The existing customer may switch to competitors, they don't need that products/services anymore, or even die. So, there is time where the customer are losing its value and need to be replaced by acquiring new customer.
Acquiring new customer does not always means get a totally new customer from the competitors or new to the company. New customer can be an existing customer that is new to the category when they found a new category of solution for their existing need. Like Amazon's customer, currently their customer may only buy book from Amazon. But when amazon offer new product called Kindle which is an e-book reader, the current customer may switch to buying Kindle instead of book.
When a company acquiring new...
...CUSTOMERLIFETIMEVALUE: MARKETING MODELS AND APPLICATIONS
Paul D. Berger Nada I. Nasr
ABSTRACT Customerlifetimevalue has been a mainstay concept in direct response marketing for many years, and has been increasingly considered in the ﬁeld of general marketing. However, the vast majority of literature on the topic (a) has been dedicated to extolling its use as a decisionmaking criterion; (b) has presented isolated numerical examples of its calculation/determination; and (c) has considered it as part of the general discussions of proﬁtability and discussed its role in customer acquisition decisions and customer acquisition/retention trade-offs. There has been a dearth of general modeling of the topic. This paper presents a series of mathematical models for determination of customerlifetimevalue. The choice of the models is based on a systematic theoretical taxonomy and on assumptions grounded in customer behavior. In addition, selected managerial applications of these general models of customerlifetimevalue are offered.
PAUL D. BERGER is Professor and Chairman of the Marketing Department at the School of Management, Boston University.
NADA I. NASR is a doctoral student in Marketing at the School of Management, Boston University.
1998 John Wiley &...
...CustomerLifetimeValue - A Case Study
* Group 1: 7
* Group 2: 11.875
* Group 3: 2.5
a Your manager asks you what you think might explain the differences in p, r, and AC between the three groups. What would you say?
i Group 1’s higher “p” could be due to the fact that this group of students doesn’t have the meal plan that undergrad students who live on (or close to) campus have. Additionally, some MBA students may have longer classes than the typical undergad student, especially on weekends. The MBA students may be more inclined to buy more food to save and snack on during class sessions. The retention probability through a certain time “r” is expected to be higher for undergrad students who live on or closer to campus and can easily walk to the sandwich shop. MBA students still have a high retention rate, but following the completion of their MBA program, they’re less likely to drive to Ike’s for food since they commute to school (especially if they have a good sandwich shop from where they commute). Regarding “AC”, the cost to promote Ike’s for people familiar with the area (Group 2) is expected to be lower because the Bay Area natives already have some knowledge of Ike’s. The “AC” for Groups 1 & 3 are higher because Ike’s must promote their business to people who have most likely never heard of the sandwich shop through ads, Facebook, or coupons....
...their customers companies are putting
efforts in implementation of customer relationship
management concept. Different studies have shown that
not all customers are desirable from profitable point of
view. Therefore, many concepts have been developed for
classifying desirable customers, among which is
CustomerLifetimeValue (CLV). Problem of applying
CLV occurs in turbulent economic environments which
suffer from high inflation rates and illiquidity among
companies, especially in B2B market segments. This
paper has a purpose to put accent on the need for
modifying the CLV concept in order to gain more
accurate data about customers in such turbulent
Key Words: CLV, CRM, turbulent economies
Complexity of business relationships, both on local
and international markets, has led to the emerging need
for development and application of marketing concept.
In its basis, doing business in market economies has
evolved together with marketing concept, rejecting the
production approach as dominant and introducing
approach of long-term customer relationships through
customer relationship management (CRM).
One of the major change in management`s focus, due
to the fact that none of the companies could satisfy all of
its customers, neither with quality nor the quantity, was
narrowing to smaller market...