Customer Lifetime Value In The Pharmaceutical Industry

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In today’s market, fulfilling consumers’ needs and wants are major factors in providing options, aligning business goals and accumulating huge longevity success. Dr. Schwartz 's video on paradox of choice outlies that too many selections do not necessarily lead to happier consumers. In retrospect to Dr. Schwartz 's theory, when too many choices are offered, consumers imagination becomes over whelmed with rational thought processes and causes them to see too many possibilities, each more tantalizing than the last. Moreover, as a result, "choice" becomes a torturous dilemma whereas with too many, there is the risk of paralysis, confusion and dissatisfaction (Reed et al., 2012). In other words, as the number of choices increases, the risk of …show more content…

What is Customer Lifetime Value? CLV is a customer-centric approach that focuses on three aspects of the customer process: acquisition, retention, and development. According, to (Dinan, 2015), customer Lifetime Value (CLV) is defined as the total dollars flowing from a customer over the entire relationship with that customer. It’s a projection that estimates the customer’s financial worth to a firm. In the pharmaceutical industry where I work (CLV) begins when a patient first receives a prescription or requests a product from a physician, and continues all the way through patent expiration-and, if possible, through a product conversion. Building a compliance triangle, linking patients, physicians and pharmaceutical companies together (Dinan, 2015). Describe a situation where a company should focus on CLV to cultivate their customer relationships? In the pharmaceutical industry, a company should focus on brand loyalty in which increases CLV. Building an enhance relationship will identifying prospects, fulfill customers’ needs and create a strong tight connection to a long-term marketing success. According, to research, pharmaceutical companies boosting CLV encourages new product trials, that usually facilitates a repeat in the purchases and as a result extends the customers lifetime loyalty with the brand (Compton, 2016). Focusing on CLV will help the

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