Lifetime Customer Value

But a CRM system isn't just a list of contacts. It contains customers' details and history of their transactions with an organization, along with information about those customers' place or status in the sales process (Scott, 2014). CRM application helps a business to maintain the correct information of customers in order to manage the relationship with customers and update customers’ needs. Moreover it helps a business to achieve an insight into the behavior of their customers and adapt their business to make sure that customers are served in the best

Chen, I, J. and Popovich, K. (2003) Understanding customer relationship management (CRM). People, process and technology. Business process management journal, Vol. 9 No 5. Retrieved from http://cis.csuohio.edu/~ichen/CRM.pdf

Customers enable the organization to treat each customer in a different way on the basis of the contribution they make towards the firm (Kleinaltenkamp & Wengler, 2007). The analysis of customer lifetime value aids the organization to rank and order customers on the basis of their contribution to organization’s revenues. It also helps the organization to determine as to how much it can invest in retaining customers to gain positive returns on the investment.

An effective Customer Relationship Management (CRM) program can be used to identify, retain, satisfy and obtain customers by using technology to optimize strategies for understanding customers’ needs to manage business interactions with current, former, and prospective customers. Additionally, CRM also enables companies to maximize internal, external, marketing and customer service operations to better address the needs of the customer building a better relationship with customers that a more profitable. (Ahmad & Buttle, 2001)

ABSTRACT Customer lifetime value has been a mainstay concept in direct response marketing for many years, and has been increasingly considered in the field of general marketing. However, the vast majority of literature on the topic (a) has been dedicated to extolling its use as a decisionmaking criterion; (b) has presented isolated numerical examples of its calculation/determination; and (c) has considered it as part of the general discussions of profitability and discussed its role in customer acquisition decisions and customer acquisition/retention trade-offs. There has been a dearth of general modeling of the topic. This paper presents a series of

Many companies use Customer Lifetime Value (CLV) as a way of “segmenting [their] customer base” (Gallo, 2014, para 4). You may ask why a company would want to segment their customer base, and the reason is that this allows a company to better service them. CLV, in short, allows a company to determine how much profit they can generate from a customer over the lifespan of that customer (Gallo,2014). Different customers will generate different amounts of profit for a company, which is why segmenting or grouping customer bases together is convenient. Once these customer groups have been identified, a company can then “identify specific past behavior variables that affect the future purchase pattern of the

4. Brand Loyalty: Aaker (1996) defined brand loyalty as the attachment of a customer to a brand. According to the attitudinal perspective, brand loyalty is defined as a deeply held commitment to re-buy a preferred product or service consistently in the future despite situational influences and marketing efforts having potential to cause switching behavior (Oliver, 1997).From the behavioral perspective Odin, Odin and Valette-Florence (2001) suggested that the customer who buys the brand systematically is considered loyal to this brand. Authors may differ in defining the brand loyalty but they all agree on the importance of focusing on loyal customers and trying to increase their number and their loyalty. Managers know that loyal customers do buy more with willingness to spend more, are easier to reach and act as an advocate for the brands’ firms (Chaudhuri and Holbrook, 2001; Odin, et al., 2001; Oliver, 1997).

Losing track of customers and their needs, including a lack of insight into how they can best be communicated with is the most costly mistake a company can make. The loss of relevancy within a customer base immediately opens it up to competitors, drastically increasing the costs to get them back and re-establish value of products and services (Allen, Carletti, Leonello, 2011). Lack of customers will also lead to lack of insight into demand curves of products and the inability to forecast them accurately (Docters, Durman, Korman, Schefers, 2008). Integrating Customer Relationship Management (CRM) systems into the daily activity of a company is essential to alleviate this problem (Bielski, 2003). Failing to integrate CRM systems into the overall workflow of the company will lead to losing even more customers and lost revenue, and this is especially true for foreign subsidiaries of global companies (Davids, 1999).

In order to establish a suitable CRM system and increase the success rate, understanding CRM processes is especially important. Building CRM system, there are many works need to do(). Firstly, the target customer market should be identified. Different customer strategies are focused on different target customer markets based on their profitability. Then, firms set customer objectives, for example, acquire customer satisfaction and loyalty. After that, the leaders and managers should support and commit the implementation of a CRM system. At the same time, when companies change their targets, a plan about changing

The firm chosen to analyze is Anugraha Jewellers. The company was incorporated in 1994. The company is based in India and it manufactures and sells gold jewellery. The lifetime value of a customer is an essential metric for business owners who wish to capture the profits associated with customer loyalty.

It’s very important to a business to have good customer relationships; CRM Software’s main objectives are to attract new customers while maintaining and satisfying their current customers and trying to win back the trust of former customers. Customers are one of the most important variables for a business owner to pay attention to, when trying to create a profit. Customer Relationship Management software keeps track of customer information to help the company maintain a strong relation with the customers. Good CRM Software brings together information from all databases within a company and gives

When customers become loyal, they are not only buying your product or service, they become emotionally attached to your brand. They may mention your brand to their friends and family endorsing your brand through word

CRM (Customer Relationship Management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had

The use of CRM software enables companies to operate more effectively and efficiently. It consolidates customer data and permits each department access to it. The usage of this software serves to enrich the customer’s experience by recording all their interactions with the company (e-mails, social media, phone calls etc.)With this software, organizations can also analyze and predict customer and prospects behavior. Along with regular updates, proper implementation of reports, analysis and predictions, the organization may gain competitive advantage and maximize profitability.

Our text explains that “customer loyalty is the degree to which a customer will select a particular brand when a purchase from that product category is being considered,” (Levens, 2012, p. 72). This loyalty is present in the relationship that a brand has engaged with the customer, and the resulting attachment the brand has with a consumer (Levens, 2012, p. 72). It is the loyal customer that is most highly sought after by companies, in order to generate the most positive brand image, retain the customer, for the ultimate goal of generating the greatest profit (Levens, 2012, p. 72). The most important goal, other than retaining the loyal customer and persuading others to join them, is evaluating the important customer relationship to determine greatest profitability (Levens, 2012, p. 72).