Download or read book An Investigation of Customer Lifetime Value Factors written by Steffen Frank Zorn and published by . This book was released on 2010 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: [Truncated abstract] As market competition grows through deregulation, new technologies and new competitors, churn rates the percentage of customers quitting their relationship with a company grow to up to 30% per year. Due to high churn rates, firms must acquire new customers constantly just to stay even. Yet acquiring new customers is costly and not every acquired customer is profitable. Acquisition costs can be higher than customer lifetime revenues, particularly for short-term customers or buyers of small quantities of low-margin products. A long-term customer, usually less costly to serve because of possible exchange efficiencies such as less time to explain a new product, often generates more revenue than recently acquired customers. Yet not every customer merits keeping. Those buying only when discounts are on offer, buying low value items infrequently or whose needs are hard to serve could be unprofitable and harm a firm. Therefore companies seek to identify and reduce the churn rate of valuable customers, and to acquire loyal and profitable customers. As a first step, companies must quantify existing and potential customer's value in order to increase customer lifetime value (CLV), the discounted difference between a customer's revenues and sales costs. This focus on CLV requires a change in company perspective, away from transactions and toward identifying, acquiring and retaining profitable customers. Identifying profitable customers requires knowledge about customer traits relating to high profitability. Information technology provides voluminous customer data, for example, an individual's revealed preferences rather than intentions. Firms can use this data to identify characteristics of valuable customers to retain profitable customers and to target new prospects with similar characteristics. As customers are a heterogeneous asset, firms should investigate how individual factors such as consumption behaviors and perceptions influence CLV and how marketing activities relate to these factors. For example, customers differ in motivations to consume. Some consume media randomly to kill time, others consume selectively in a goal-directed manner. These different consumption motivations could influence CLV and subsequent marketing activities. For academia it is important to understand how behavioral and attitudinal differences such as the importance of satisfaction relate to customer likelihood to engage in or dissolve a relationship with a firm. Furthermore literature shows a research gap in understanding how consumption modes and other customer characteristics relate to CLV, and how marketing activities influence these customer characteristics. Most CLV models omit marketing activities. Differentiating customers according to marketing activities and consumption preferences could help firms improve CLV predictions, allocate resources to acquire valuable prospects and retain valuable customers. The relationships between consumption modes and CLV should reveal another aspect of consumer behavior, the importance of consumption modes in customer relationship management...

Download or read book Customer Lifetime Value written by V. Kumar and published by Now Publishers Inc. This book was released on 2008 with total page 111 pages. Available in PDF, EPUB and Kindle. Book excerpt: Customer Lifetime Value - The Path to Profitability provides methods to measure CLV, strategies for developing customer-centric strategies, explains the implementation of CLV strategies in a B2B and B2C setting, and examines the challenges faced by an organization in implementing a CLV-based framework.

Download or read book Customer Lifetime Value written by David Bejou and published by Routledge. This book was released on 2013-04-03 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: Get the competitive edge by effectively managing customer lifetime value The customer lifetime value (CLV) concept is extensively changing the way today’s business is managed. A student or practitioner needs to understand CLV to best gain the competitive edge in business. Customer Lifetime Value: Reshaping the Way We Manage to Maximize Profits is a text that shows in detail how managers and researchers can best use CLV to a business’s advantage. This valuable resource explores various practical approaches to the measurement and management of customer value that focus on maximizing profitability and growth. Leading thinkers discuss how to leverage CLV in all aspects of business, including customer management, employee management, and firm valuation. Everyone needing to prepare a business for success in the future should read this book. Most books on the subject only cover separate components of CLV and are typically limited to targeting for direct response marketing. Customer Lifetime Value presents all components, cohesively putting them together into an understandable functioning whole. This source prepares forward-looking managers and researchers for the inevitable change and provides strategies to gain and sustain the competitive advantage. Topics in Customer Lifetime Value include: leveraging the customer database to maximize CLV using CLV in customer segmentation customer divestment using CLV in firm valuation setting up an organization designed to maximize CLV much more! Customer Lifetime Value: Reshaping the Way We Manage to Maximize Profits is essential reading for practitioners in the areas of customer satisfaction, loyalty, CRM, and direct response, as well as academics in the service marketing area.

Download or read book The Handbook of Marketing Research written by Rajiv Grover and published by SAGE. This book was released on 2006-06-23 with total page 721 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbook of Marketing Research comprehensively explores the approaches for delivering market insights for fact-based decision making in a market-oriented firm.

Download or read book Customer Satisfaction written by Nigel Hill and published by The Leadership Factor. This book was released on 2007 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book does a tremendous job of bringing to life customer satisfaction and its significance to modern businesses. The numerous examples contained within the book's pages have proved a fresh and continuous source of inspiration and expertise as I work with my organisation in helping them understand why we should do what matters most to our customers and the lasting effect such actions will have on both our customer loyalty and retention. The authors are to be commended.

Download or read book Customer Equity Management written by Roland T. Rust and published by Prentice Hall. This book was released on 2005 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book includes a practical framework with applied cases, and award-winning research.

Download or read book Who Do You Want Your Customers to Become written by Michael Schrage and published by Harvard Business Press. This book was released on 2012-07-17 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: Who do you want your customers to become? According to MIT innovation expert and thought leader Michael Schrage, if you aren’t asking this question, your strategic marketing and innovation efforts will fail. In this latest HBR Single, Schrage provides a powerful new lens for getting more value out of innovation investment. He argues that asking customers to do something different doesn’t go far enough—serious marketers and innovators must ask them to become something different instead. Even more, you must invest in their capabilities and competencies to help them become better customers. Schrage’s primary insight is that innovation is an investment in your client, not just a transaction with them. To truly innovate today, designing new products or features or services won’t get you there. Only by designing new customers—thinking of their future state, being the conduit to their evolution—will you transform your business. Schrage explains how the above question (what he calls “The Ask”) will incite you and your team to imagine and design ideal customer outcomes as the way to drive your business’s future. The Single is organized around six key insights and includes practical exercises to help you apply the question to your current situation. Schrage also includes examples from well-known companies—Google, Facebook, Disney, Starbucks, Apple, IKEA, Dyson, Ryanair, and others—to illustrate just what is possible when you apply “The Ask.” Marketing executives, brand managers, strategic innovators, and entrepreneurs alike should understand how successful innovation rebrands the client and not the product. A requisite question for its time, Who Do You Want Your Customers To Become will liberate you and your team from ‘innovation myopia’—and turn your innovation efforts on their head. HBR Singles provide brief yet potent business ideas, in digital form, for today's thinking professional.

Download or read book Customer Centricity written by Peter Fader and published by . This book was released on 2012 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: Not all customers are created equal. Despite what the tired old adage says, the customer is not always right. Not all customers deserve your best efforts: in the world of customer centricity, there are good customers...and then there is pretty much everybody else. Upending some of our most fundamental beliefs, renowned behavioral data expert Peter Fader, Co-Director of The Wharton Customer Analytics Initiative, helps businesses radically rethink how they relate to customers. He provides insights to help you revamp your performance metrics, product development, customer relationship management and organization in order to make sure you focus directly on the needs of your most valuable customers and increase profits for the long term.

Download or read book Database Marketing written by Robert C. Blattberg and published by Springer Science & Business Media. This book was released on 2010-02-26 with total page 875 pages. Available in PDF, EPUB and Kindle. Book excerpt: Database marketing is at the crossroads of technology, business strategy, and customer relationship management. Enabled by sophisticated information and communication systems, today’s organizations have the capacity to analyze customer data to inform and enhance every facet of the enterprise—from branding and promotion campaigns to supply chain management to employee training to new product development. Based on decades of collective research, teaching, and application in the field, the authors present the most comprehensive treatment to date of database marketing, integrating theory and practice. Presenting rigorous models, methodologies, and techniques (including data collection, field testing, and predictive modeling), and illustrating them through dozens of examples, the authors cover the full spectrum of principles and topics related to database marketing. "This is an excellent in-depth overview of both well-known and very recent topics in customer management models. It is an absolute must for marketers who want to enrich their knowledge on customer analytics." (Peter C. Verhoef, Professor of Marketing, Faculty of Economics and Business, University of Groningen) "A marvelous combination of relevance and sophisticated yet understandable analytical material. It should be a standard reference in the area for many years." (Don Lehmann, George E. Warren Professor of Business, Columbia Business School) "The title tells a lot about the book's approach—though the cover reads, "database," the content is mostly about customers and that's where the real-world action is. Most enjoyable is the comprehensive story – in case after case – which clearly explains what the analysis and concepts really mean. This is an essential read for those interested in database marketing, customer relationship management and customer optimization." (Richard Hochhauser, President and CEO, Harte-Hanks, Inc.) "In this tour de force of careful scholarship, the authors canvass the ever expanding literature on database marketing. This book will become an invaluable reference or text for anyone practicing, researching, teaching or studying the subject." (Edward C. Malthouse, Theodore R. and Annie Laurie Sills Associate Professor of Integrated Marketing Communications, Northwestern University)

Download or read book Driving Customer Equity written by Roland T Rust and published by Free Press. This book was released on 2000-06-27 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In their efforts to become more customer-focused, companies everywhere find themselves entangled in outmoded systems, metrics, and strategies rooted in their product-centered view of the world. Now, to ease this shift to a customer focus, marketing strategy experts Roland T. Rust, Valarie A. Zeithaml, and Katherine N. Lemon have created a dynamic new model they call "Customer Equity," a strategic framework designed to maximize every firm's most important asset, the total lifetime value of its customer base. The authors' Customer Equity Framework yields powerful insights that will help any business increase the value of its customer base. Rust, Zeithaml, and Lemon introduce the three drivers of customer equity -- Value Equity, Brand Equity, and Retention Equity -- and explain in clear, nontechnical language how managers can base their strategies on one or a combination of these drivers. The authors demonstrate in this breakthrough book how managers can build and employ competitive metrics that reveal their company's Customer Equity relative to their competitors. Based on these metrics, they show how managers can determine which drivers are most important in their industry, how they can make efficient strategic trade-offs between expenditures on these drivers, and how to project a financial return from these expenditures. The final section devotes two chapters to the Customer Pyramid, an approach that segments customers based on their long-term profitability, and an especially important chapter examines the Internet as the ultimate Customer Equity tool. Here the authors show how companies such as Intuit.com, Schwab.com, and Priceline.com have used more than one or all three drivers to increase Customer Equity. In this age of one-to-one marketing, understanding how to drive Customer Equity is central to the success of any firm. In particular, Driving Customer Equity will be essential reading for any marketing manager and, for that matter, any manager concerned with growing the value of the firm's customer base.

Download or read book Winning on Purpose written by Fred Reichheld and published by Harvard Business Press. This book was released on 2021-12-07 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: Great leaders embrace a higher purpose to win. The Net Promoter System shines as their guiding star. Few management ideas have spread so far and wide as the Net Promoter System (NPS). Since its conception almost two decades ago by customer loyalty guru Fred Reichheld, thousands of companies around the world have adopted it—from industrial titans such as Mercedes-Benz and Cummins to tech giants like Apple and Amazon to digital innovators such as Warby Parker and Peloton. Now, Reichheld has raised the bar yet again. In Winning on Purpose, he demonstrates that the primary purpose of a business should be to enrich the lives of its customers. Why? Because when customers feel this love, they come back for more and bring their friends—generating good profits. This is NPS 3.0 and it puts a new take on the age-old Golden Rule—treat customers the way you would want a loved one treated—at the heart of enduring business success. As the compelling examples in this book illustrate, companies with superior NPS consistently deliver higher returns to shareholders across a wide array of industries. But winning on purpose isn't easy. Reichheld also explains why many NPS practitioners achieve just a small fraction of the system's full potential, and he presents the newest thinking and best practices for doing NPS right. He unveils the Earned Growth Rate (EGR): the first reliable, complementary accounting measure that can truly leverage the power of NPS. With keen insight and moving personal stories, Reichheld advances the thinking and practice of NPS. Winning on Purpose is your indispensable guide for inspiring customer love within your own teams and using Net Promoter to achieve both personal and business success.

Download or read book Proceedings of Second Doctoral Symposium on Computational Intelligence written by Deepak Gupta and published by Springer Nature. This book was released on 2021-09-19 with total page 902 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book features high-quality research papers presented at Second Doctoral Symposium on Computational Intelligence (DoSCI-2021), organized by Institute of Engineering and Technology (IET), AKTU, Lucknow, India, on 6 March 2021. This book discusses the topics such as computational intelligence, artificial intelligence, deep learning, evolutionary algorithms, swarm intelligence, fuzzy sets and vague sets, rough set theoretic approaches, quantum-inspired computational intelligence, hybrid computational intelligence, machine learning, computer vision, soft computing, distributed computing, parallel and grid computing, cloud computing, high-performance computing, biomedical computing, decision support and decision making.

Download or read book Customer Relationship Management written by Judith W. Kincaid and published by Prentice Hall Professional. This book was released on 2003 with total page 512 pages. Available in PDF, EPUB and Kindle. Book excerpt: An ETHS graduate of 1962 provides a blueprint for customer relationship management in business and technical organizations.

Download or read book Financial Dimensions of Marketing Decisions written by David W. Stewart and published by Springer. This book was released on 2019-05-04 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is about linking marketing activities and outcomes to the financial performance of the organization. The theme of the book is that the marketing function must justify its activities and use of resources in terms of its financial contributions to the firm. More specifically, the book focuses on how marketing activities generate cash flow, growth, and other financial benefits for the organization. This perspective provides a framework for long-term investments for purposes of evaluating and ranking the funding of proposed projects.

Download or read book Marketing Metrics written by Paul W. Farris and published by Pearson Education. This book was released on 2010 with total page 431 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In this thoroughly updated and significantly expanded book, four leading marketing researchers show exactly how to choose the right metrics for every challenge. The authors show how to use marketing dashboards to view market dynamics from multiple perspectives, maximize accuracy, and "triangulate" to optimal solutions. You'll discover high-value metrics for virtually every facet of marketing: promotional strategy, advertising, and distribution; customer perceptions; market share; competitors' power; margins and pricing; products and portfolios; customer profitability; sales forces and channels; and more. This edition introduces essential new metrics ranging from Net Promoter to social media and brand equity measurement. Last, but not least, it shows how to build comprehensive models to support planning--and optimize every marketing decision you make."--Publisher description.

Download or read book Customer Lifetime Value written by David Bejou and published by Routledge. This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Co-published simultaneously as Journal of relationship marketing, volume 5, numbers 2/3 2006.

Download or read book The Service Profit Chain written by James L. Heskett and published by Simon and Schuster. This book was released on 1997-04-10 with total page 345 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this pathbreaking book, world-renowned Harvard Business School service firm experts James L. Heskett, W. Earl Sasser, Jr. and Leonard A. Schlesinger reveal that leading companies stay on top by managing the service profit chain. Why are a select few service firms better at what they do -- year in and year out -- than their competitors? For most senior managers, the profusion of anecdotal "service excellence" books fails to address this key question. Based on five years of painstaking research, the authors show how managers at American Express, Southwest Airlines, Banc One, Waste Management, USAA, MBNA, Intuit, British Airways, Taco Bell, Fairfield Inns, Ritz-Carlton Hotel, and the Merry Maids subsidiary of ServiceMaster employ a quantifiable set of relationships that directly links profit and growth to not only customer loyalty and satisfaction, but to employee loyalty, satisfaction, and productivity. The strongest relationships the authors discovered are those between (1) profit and customer loyalty; (2) employee loyalty and customer loyalty; and (3) employee satisfaction and customer satisfaction. Moreover, these relationships are mutually reinforcing; that is, satisfied customers contribute to employee satisfaction and vice versa. Here, finally, is the foundation for a powerful strategic service vision, a model on which any manager can build more focused operations and marketing capabilities. For example, the authors demonstrate how, in Banc One's operating divisions, a direct relationship between customer loyalty measured by the "depth" of a relationship, the number of banking services a customer utilizes, and profitability led the bank to encourage existing customers to further extend the bank services they use. Taco Bell has found that their stores in the top quadrant of customer satisfaction ratings outperform their other stores on all measures. At American Express Travel Services, offices that ticket quickly and accurately are more profitable than those which don't. With hundreds of examples like these, the authors show how to manage the customer-employee "satisfaction mirror" and the customer value equation to achieve a "customer's eye view" of goods and services. They describe how companies in any service industry can (1) measure service profit chain relationships across operating units; (2) communicate the resulting self-appraisal; (3) develop a "balanced scorecard" of performance; (4) develop a recognitions and rewards system tied to established measures; (5) communicate results company-wide; (6) develop an internal "best practice" information exchange; and (7) improve overall service profit chain performance. What difference can service profit chain management make? A lot. Between 1986 and 1995, the common stock prices of the companies studied by the authors increased 147%, nearly twice as fast as the price of the stocks of their closest competitors. The proven success and high-yielding results from these high-achieving companies will make The Service Profit Chain required reading for senior, division, and business unit managers in all service companies, as well as for students of service management.