Customer lifetime value
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I need help with research on the following questions. The references must be from academic journals and other acceptable sources.
1. What is customer lifetime value?
2. Describe a situation where a company should focus on CLV to cultivate their customer relationships.
3. Describe a situation where CLV and customer retention will not be important.
4. Define and describe database marketing and CRM. What are the pros and cons of database marketing and CRM? What could be an example where each approach is used effectively?
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Solution Summary
Customer lifetime value is examined.
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1. What is customer lifetime value?
The customer lifetime value represents the amount of profit that a company can expect to generate from a consumer throughout their lifetime. It quintessentially is the benchmark that should guide how the organization conducts operations as the objective is to garner a majority of long-term customers who will generate profits for the company throughout their lifetime. This approach is more cost conscientious than the alternative approach, which requires marketing products to new customers who may or may not become committed customers to (your) business. If a business can ensure that they obtain lifelong customers, they will save costs associated with marketing, and can estimate future profits based upon previous spending behaviors of their core customers who are committed to their business.
2. Describe a situation where a company should focus on CLV to cultivate their customer relationships.
All companies should focus on CLV to cultivate customer relationships, but a specific example would entail the fact that small businesses ...
Education
- BS, Sam Houston State University, 1903 University Avenue, Huntsville, Tx 77340
- MS, Prairie View A&M University
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