Lecture 4

Question 1

Customer value management

Answer 1

Focuses on the analysis of individual customer data on prospects and customers. That information is used to acquire customers and to drive customer behaviour with the developed marketing strategies in such a way that the value of all current and future customers is optimized.

Question 2

Requirements for customer value management

Answer 2

1. Management adopts a customer centric view
2. Management recognizes differences in customers
3. Customer data is up-to-date & realtime
4. Costs can be allocated to individual customers
5. Generation of customer insights and value information based on extensive analysis.

Question 3

Traditional marketing metrics

Answer 3

1. Market share
2. Sales Growth
3. Satisfaction

Question 4

Customer metrics

Answer 4

1. Customer profitability
2. Customer acquisition
3. Customer margin
4. Customer retention

Question 5

CLV

Answer 5

present value of all current an future profits generated from a customer over the life of her business with the firm

Question 6

Customer Equity

Answer 6

Net current and future expected value of firm’s customers. Summation of all CLV’s (current & present) of a firm.

Question 7

Perceived customer value

Answer 7

Net valuation of the perceived benefits accrued from an offering based on the costs they are willing to give up for the needs they are seeking to satisfy.