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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How to Calculate a Present Value Using Microsoft Excel I want to do this! What ’s This? Using Microsoft Excel to calculate the present value of a potential investment is a simple task once you learn the syntax of the required formula. Follow these easy steps and you can calculate present value using Microsoft Excel easily and quickly. Instructions 1. 1 Understand the concept of present value. Present value is one of the Time Value of Money calculations. Use it to answer questions
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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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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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http://www.papercamp.com/essay/11828/Tree-Values-Case Section 1 – Executive Summary This report analyzes the case “Tree Values” to find an optimal way for Mr. Smith to manage his forestland and harvest the crop trees. The fundamental idea in this report is based on the concept of present value. A number of options are analyzed and the one with highest present value of pay off is considered. Questions 9‚ 10‚ and 11 give Mr. Smith 3 options: * Option 1: Harvest all crop trees now and receive $8
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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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RBC Financial Group Case 1. At the start of the 21st century‚ RBC was Canada’s leading bank and largest bank in terms of assets and market capitalization. It was a full-service bank with five main lines of business: personal and commercial banking‚ insurance‚ wealth management‚ corporate / investment banking‚ and transaction processing. The commercial bank of RBC (Royal Bank) accounted for nearly 50% of the company’s net income and had an extensive delivery network with branches‚ Automated Banking
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Situation Royal Bank Canada is a financial institute that owns and operates RBC Insurance - a Canadian owned financial institute headquartered in Mississauga‚ Ontario. Operating globally‚ RBC Insurance has over 5 million clients in the United States‚ Canada‚ and in international markets. Through its operating entities‚ RBC Insurance provides a wide range of travel‚ life‚ health‚ home‚ auto‚ wealth and reinsurance‚ as well as creditor and business insurance services‚ to individual and group clients
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representative office in Thailand? When RBC opened a representative office in Thailand in the early 1980’s‚ its ultimate goal was to obtain a full branch license. RBC felt that Thailand had the potential to become a regional financial center‚ and they certainly wanted to have an established presence in a country with this sort of opportunity. RBC also had the corporate goal of increasing the amount of its business generated from non-Canadian sources. With RBC locations in Asia already accounting for
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…………………………………………………….………………….15 Executive Summary In today’s demanding market‚ it is essential to know how to make good investments. The following is an in depth qualitative and quantitative analysis of the Royal Bank of Canada. First‚ RBC and its subsidiaries will be introduced including information about its history and current situation. The qualitative analysis will consist of RBC’s general information‚ history‚ business segments‚ and corporate social responsibility. Secondly
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