Customer Lifetime Value - A Case Study 1 CLV * Group 1: 7 * Group 2: 11.875 * Group 3: 2.5 2 Questions a Your manager asks you what you think might explain the differences in p‚ r‚ and AC between the three groups. What would you say? i Group 1’s higher “p” could be due to the fact that this group of students doesn’t have the meal plan that undergrad students who live on (or close to) campus have. Additionally‚ some MBA students may have longer classes
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minimizing costs are ways to boost profits. The article “Managing Customer Value” suggests that customers might be the key to improve profits. Customers are assets to firms; they generate revenues. However‚ some assets generate more revenues than other. In order to foster maximum returns from the customers‚ it becomes imperative to understand the differences between customers groups. Recognizing this diversity will enable value extraction from the investments. Unfortunately‚ most companies are unable
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CUSTOMER LIFETIME VALUE: MARKETING MODELS AND APPLICATIONS Paul D. Berger Nada I. Nasr 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
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Brita’s Company Product: • Brita Pitcher-filter water system Price: $15.16 pitcher system and $4.10 filter • Brita faucet system Price: $34.99/$39.99 Faucet System Place: Pitcher system: main health food chains introducing department stores‚ mass merchandise‚ grocery stores‚ club stores‚ drug stores. (Minimum advertised price). Faucet to be launched. Promotion: They are very focused in taste for pitcher. It has been a good decision since I think probably to try to find another proposal for
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TUSCAN LIFESTYLES: ASSESING CUSTOMER LIFETIME VALUE Tuscan Lifestyles catalogs markets a number of products such as cookware‚ tableware‚ linens and decorative home accessories. Due to the nature of the products and the business‚ it is difficult for the company to know whether or when the customer makes additional purchases. The company is looking to see whether a customer’s initial purchase amount is predictive of the overall lifetime value of the customer and base their future marketing plans
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findings which are observed when we analyse the Marketing situation faced by Brita at the end of 2006. Firstly‚ the market for the Brita Pour-through system(PT)‚ which is the core product that propelled Brita’s position in the market‚ has been stagnant since the introduction of alternative sources of filtered systems such as Faucet-mounted(FM) filter and the introduction of bottled water in to the market. With Brita reluctant to explore the alternative options quickly‚ other competitors such as
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Case Write-up on Brita Products Co. After a thorough analysis on Brita Products Co‚ we identified the three most important factors of Brita’s success were: firstly‚ they understood that the market’s wants for taste exceeded the functional needs that their competitors advertised. Hence‚ they were able to outperform their competitors who were suffering from marketing myopia by emphasizing only on the functional side of the product and gained a competitive advantage over competitors by offering what
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Customer Lifetime Value (SMALL BOOK 167-177) * Customer lifetime value (CLV)‚ is the net present value of the cash flows attributed to the relationship with a customer. * The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction‚ rather than on maximizing short-term sales. * Two approaches to CLV: * Disaggregate (“spreadsheet”)– Complex and cumbersome‚ but allows you to build in any assumptions
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i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales. The report is broadly comprised of three main sections: 1. Background 2. Situational Analysis 3. Options open to Brita 4. Recommended Strategy Background Brita‚ after an extended period of
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customer relationship management concept. Different studies have shown that not all customers are desirable from profitable point of view. Therefore‚ many concepts have been developed for classifying desirable customers‚ among which is Customer Lifetime Value (CLV). Problem of applying CLV occurs in turbulent economic environments which suffer from high inflation rates and illiquidity among companies‚ especially in B2B market segments. This paper has a purpose to put accent on the need for modifying
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