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课件网) Chapter 2 Customer Life Cycle (CLC) and Customer Lifetime Value (CLV) Introduction Learning Objectives Marketing Orientation Value Creation Customer Life Cycle Phases of CLC Customer Life Cycle Marketing Customer Lifetime Value (CLV) CLV Defined Applications of CLV Calculating CLV How to Improve CLV Recap Chapter 2: Customer Life Cycle (CLC) and Customer Lifetime Value (CLV) After going through this chapter, the students will be able to: Appreciate the importance of the concept of Marketing Orientation for building mutual reward system for the customers and the organizations Figure out the contribution of the concept of value creation for achieving customer focus Understand different phases of Customer Life Cycle and its implication in selecting appropriate marketing strategies Comprehend the concepts of Customer Life-Time Value (CLV) and its strategic importance Identify the methods of calculating CLV and the ways to improve it Learning Objectives For increasing the effectiveness of Marketing Programs, it is important to know whom to communicate, when to communicate, what to communicate, how to communicate and properly time all the interactions with the customer. The answer to all these questions can be found by properly knowing the customer life cycle. The knowledge of Customer Life Time Value enables the organization to focus the strategies to specific segment of the customer and create the balance between efforts and returns. Introduction A Production oriented approach A Selling oriented approach A Marketing oriented approach Marketing Orientation Mutual Reward System Value Creation Value Creation Strategies Customer Life Cycle (CLC) CLC Marketing Management wants to know the financial worth of this relationship to the organization so that the decisions regarding the level of efforts to acquire and retain the customers can be made. The ways to manage the relationship with the customers and at the same time distinguish between a profitable customer and a loss making customer. The replacement of transaction marketing by relationship marketing has led the manager to find out the new way of finding the economic value of the customer considering both the relationship benefits and accounting profit from the customer. Customer Lifetime Value (CLV) CLV is defined as the present value of all net payments during the complete life of the customer with the organization. To evaluate CLV, all future revenues and costs must be assessed. Simply putting, CLV is the present value of all future purchases by the customer minus the costs to be incurred by the company. CLV Defined Allocation of resources Customer Selection Segmentation Merger & Acquisitions Customer Equity Marketing Campaigns CLV Based Loyalty Programs Purchase Sequence Analysis Applications of CLV The CLTV of a customer is calculated based on the following inputs: The cost of acquiring the customer Periodic cost of providing service ... ...
