As a newly appointed marketing manager you had to ensure employees lift the profit made by firm thus concept of customer value matrix is introduced for earning revenues.
- Define CLV and ways to measure customer lifetime elements & values that are affecting the working of the Homebase.
- Explain components of creating customer base & opportunities for developing high customer value at the Homebase.
- Critically evaluate methods & techniques for increasing customer lifetime value.
Customer value management is defined as the analysis of the customer perception about the products or services offered by an organisation . It also includes the thinking of clients about the value for money paid for purchasing goods and services. In present scenario, due to stiff competition, it has become essential for business to focus on catering the need of workers and provide them with high value. As this strategy will assist firm in maintaining the position in the market as well as increasing sustainability. Customer value management assists business entity in increasing sales as well as profitability. It also provides firm an opportunity to gain customer loyalty and retain profitable client for long time. An organisation can increase customer value by adopting the customer centric management approach. This approach will also help manager in determining the factors which drives value for customers. It also assists business entity in identifying the resources as well as techniques which can be utilised for improving business performance.
Purpose of project is to develop the understanding about the concept as well as the importance of customer value management in context of Home base organization. It also emphasizes on analysing the factors which influence customer lifetime value.
P1 Analysing the several components which enables an enterprise to determine and evaluating customer lifetime value
Customer lifetime values is considered to be as an effective tool which is generally utilised by companies for retaining the customers for long time and providing client high level of satisfaction. Market research is considered to be a suitable technique which can be used by Home base company for analysis the marketing position and also customer perception about the value provided by firm. It will also assist business entity in identifying the performance gap and determining the area of improvement. Home base organisation is recognised as a British home improvement and garden centre which is operating in retail industry. Objective of business entity is to provide high value to its client and return to stakeholders. Management team in an organisation has taking the high initiatives for providing h level of satisfaction to customer by adopting several methods and techniques such as introduction of attractive offers , discounts etc. This strategy has helped firm in attracting more number of customers and increasing sustainability. It has also provided business entity a chance to increase sales as well as profitability and gain competitive advantage in the market.
Customer lifetime value is also defined as prediction or estimation of net profit attributed to the entire future relationship with a customer. It also includes the analysis of firm potential to grow. In other words, success as well as development of an organisation is totally dependent on the value or satisfaction gained by customer by consuming goods or services offered by company. Customer life span, client churn rate, average profit margin, sales etc. are some variables or component which will assist manager in analysing the customer lifet