# PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies V. Kumar Dr V.Kumar

2 Chapter 4 Valuing customer contributions The future looks green!!! Instructor s Presentation Slides 2

3 Traditional measures of Customer Value Recency Frequency Monetary Value (RFM) Past Customer Value (PCV) Share of Wallet (SOW) Tenure/Duration 3

4 Customer Lifetime Value Customer Lifetime Value (CLV) is defined as the sum of cumulated future cash flows discounted using the weighted average cost of capital (WACC) of a customer over their entire lifetime with the company. CLV tracks the future purchase behavior of a customer and computes his /her value in present day terms. 4

5 Measuring CLV CLV Measurement Approach A Conceptual Framework Recurring Revenues minus Recurring Costs Gross Contribution Margin minus Net Margin Adjusted for NPV Marketing Costs times Expected number of purchases over next 3 years Accumulated Margin minus Acquisition Costs Customer Lifetime Value Source: Adapted from Kumar, V. (2008), Managing Customers for Profits, Upper Saddle River, NJ: Wharton School Publishing. 5

6 Measuring CLV CLV Computation in a Contractual Setting CLV i T t 1 Base GC (1 r) t T t 1 pˆ(buy it (1 1) *ĜC r) t it Mˆ (1 C it r) t where, CLV i = lifetime value for customer i p (Buy it = predicted probability that customer i will purchase in time period t G C = predicted gross contribution margin provided by customer iin time period t M C = predicted marketing costs directed toward customer iin time period t t = index for time periods; such as months, quarters, years, etc. T = marks the end of the calibration or observation time frame r = monthly discount factor Base GC = predicted base monthly gross contribution margin 6

7 Measuring CLV CLV Computation in a Noncontractual Setting CLV i T t 1 pˆ(buy it (1 1)*ĜC r) t it Mˆ C (1 it t r) where, CLV i = lifetime value for customer i p (Buy it = predicted probability that customer i will purchase in time period t G C = predicted gross contribution margin provided by customer iin time period t M C = predicted marketing costs directed toward customer iin time period t t = index for time periods; such as months, quarters, years, etc. T = marks the end of the calibration or observation time frame r = monthly discount factor Base GC = predicted base monthly gross contribution margin 7

8 Drivers of CLV Exchange Characteristics Customer Characteristics Product Characteristics Firm s Marketing Actions 8

9 Maximizing CLV Customer Retention Which customers should we retain? How can we retain more customers? Can we ensure that the customers we retain are profitable or potentially profitable? What efforts/programs influence customer retention and CLV? When are customers prone to switch? What are the drivers to switching? Customer Acquisition How can we increase customer acquisition? Is it possible to acquire profitable customers rather than just any customers? What acquisition sources are most/least profitable? Which sources are ultimately providing the best customers? How much to spend on acquiring a customer? Customer Profitability How can we increase our overall profitability? How to recruit profitable customers who will stay longer? How long is the customer's actual lifecycle? Which customers are more prone to specific campaigns? (e.g., discounts, deals etc.) 9

10 1. Customer Selection Need for Strategy Traditional metrics like RFM, PCV, SOW, Tenure or Duration are based on past customer behavior. A poor indicator of future customer purchase behavior Fails to identify customers who will be profitable in the future. CLV, a forward looking metric, focuses on customers who are likely to be profitable in the future. How does it work? Selection is important for two reasons; a) Not all customers are equally profitable b) Limited budgets to spend resources on By selecting the right customers to manage, CLV enables firms to rank order customers based on their value to the company, and prioritize resources accordingly. 10

11 2. Managing Loyalty and Profitability Together Need for Strategy Loyalty is not always the true measure of customer profitability. Traditionally, customer loyalty has been defined solely as a behavioral measure with the assumption that the loyalty of a customer is obtained from his purchasing behavior. Chasing loyal customers is not the same as chasing profitable customers. How does it work? Customers are rank ordered and segmented into four cells based on their loyalty and profitability levels. Segmentation and strategies shown on the next slide. 11

12 2. Managing Loyalty and profitability together High Profitabil ity BUTTERFLIES Good fit between company offering and customer needs High profit potential Action: Aim to achieve transactional satisfaction, not attitudinal loyalty. Milk the accounts as long as they are active. Key challenge: Cease investment once inflection point is reached STRANGERS TRUE FRIENDS Good fit between company offering and customer needs Highest profit potential Actions: Consistent intermittently spaced communication Achieve attitudinal and behavioural loyalty Delight to nurture/defend/retain. BARNACLES Low Profitabil ity Little fit between company offering and customer needs Lowest profit potential Action: Eliminate all investments towards these relationships Profitize every transaction Short term Customers Limited fit between company offering and customer needs Low profit potential Action: Measure size and share of wallet If share of wallet is low, specific upselling and cross selling If size of wallet is small, strict cost control Long term Customers 12

13 3. Optimal Allocation of Resources Need for Strategy Firms cannot allocate equal resources to all of their customers. Also, not all customers are equally loyal and profitable. Hence, firms should allocate their limited resources to the most loyal and profitable customers. How does it work? To optimally allocate resources, firms must identify; a) their most profitable customers, and b) those who are the most responsive to marketing efforts By carefully monitoring the purchase frequency of customers, the inter purchase time, and the contribution toward profit, managers can determine the frequency of marketing initiatives to maximize CLV through an optimal contact strategy. 13

14 Need for Strategy 4. Cross buying Behavior When customers buy across product categories; a) they contribute to an increase in revenue b) contribute to profits c) increase their own switching costs Therefore, firms should identify and target the right customers who are most likely to cross buy. How does it work? In order to identify the customers who are likely to cross buy, firms not only need to understand the motivation and drivers influencing customers to cross buy but also the impact on revenues and other customer related metrics. Drivers of cross buying will help managers retain customers for a greater duration. 14

15 5. Pitching the Right Product to the Right Customer at the Right Time Need for Strategy Cross selling is an important strategy for firms to increase customer retention and customer value. As not all customers are likely to cross buy, it is imperative for firms to identify customers who have a higher propensity to cross buy. How does it work? To predict the purchase sequence of each customer firms need to collect the following information: a) In which product category the customer is likely to make a purchase? b) At what intervals and at time period the customer will make a purchase? c) How much the customer is likely to spend towards that purchase? 15

16 6. Preventing Customer Attrition Need for Strategy As it is less expensive to retain a current customer than to gain a new one, monitoring customer churn/attrition is vital for companies. How does it work? By building a propensity to quit model. These models give us the probability of a customer quitting at a particular point in time. Based on when the customer is likely to leave and his/her ability to contribute profits, firms can provide appropriate intervention strategies that will aid retention. 16

17 7. Product Returns Need for Strategy Product returns: a) Reflect the discontent of customers with the firm s offering b) Increase service costs for the firm c) Eventually reduce margins for the firm Firms can benefit greatly by estimating optimal amount of product returns How does it work? Firms need to address the following questions: a) What factors affect customers return behavior? b) How does customers' return behavior influence their future buying behavior and the firm initiated marketing communication plans? c) Should firms consider product returns as a necessary evil in the exchange process? 17

18 8. Managing Multichannel Shoppers Need for Strategy Customers often engage through different channels such as retail stores, brick and mortar stores, the Internet, or by mail order catalogs. Each of these channels services a different set of customers and provides varying levels of service. How does it work? To effectively manage multiple channels, firms have to first identify who the multichannel shoppers are by studying the drivers associated with purchase behavior across multiple channels. After identifying the drivers, firms have to determine whether multichannel shoppers are: (a) more likely to buy in the future, (b) spend more money, and (c) more profitable than single channel customers. Ascertain which channel a customer is likely to adopt next and when this is likely to happen. 18

19 9. Linking Investments in Branding to Customer Profitability Need for Strategy Brands add value to companies How does it work? It is possible to strengthen a brand by ascertaining and increasing the value a customer provides to the brand. This value is referred to as the Customer Brand Value (CBV). 19

20 10. Acquiring Profitable Customers Need for Strategy Understanding how firms acquire customers and the best metric to use while acquiring those customers is essential for firms to maximize their overall profitability. How does it work? Using the concept of CLV, the study proposed the introduction of an ARPRO framework (Allocating Resources for Profit) that would help firms decide which customers are worth chasing and which dormant customers should be pursued to come back to the firm. Firms using this strategy can use customer profiles to identify customers who are most likely to be profitable and should be acquired and retained. 20

21 11. Interaction Orientation Need for Strategy Traditionally, firms used a product centric approach which focused on making and selling superior products. A customer centric approach allows firms to focus on the interaction with customers thereby maintain future profitability. How does it work? Customer Concept Interaction response capacity Customer empowerment Customer value management 21

22 12. Viral and Referral Marketing Strategies Need for Strategy Customers not only contribute through their own transactions but also have an impact on the transactions of other customers through word of mouth and referrals. How does it work? The concept of Customer Referral Value (CRV) enables managers to measure and manage customer referral behavior. In a B2B context, the concept of Business Reference Value (BRV) enables managers to measure and manage client references that are critical to business. Social media and its impact on marketing is captured under Customer Influence Value (CIV) where managers can understand the social media influence of their customers on prospects and current customers. 22

23 Conclusion CLV is a direct means to measure the value of a customer to a firm in the future It is a strong indicator of the level of customer engagement with the firm. A customer s value to a firm is not limited to the direct impact of that customer. Customers can also affect the profitability of other customers of a firm through their activities and behavior. As a result, firms should consider the influence of these indirect factors of customer engagement; CRV, CIV, and CKV, and their relationship with CLV which can further quantify the value of a customer to a firm. 23

24 End of Chapter 4 24

### PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies

PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies V. Kumar Dr V.Kumar Chapter 6 Customer Referrals Instructor s Presentation Slides 2 Word of Mouth Marketing Word of mouth marketing is a way

### V. Kumar Andrew Petersen Instructor s Presentation Slides

V. Kumar Andrew Petersen Instructor s Presentation Slides Relationship Management 2 Relationship Management (CRM) practices are being adopted by companies as a means to forge their competitive advantage

### Loyal customers cost less to serve, pay more. Profitable Customer Management: Measuring and Maximizing Customer Lifetime Value

Profitable Customer Management: Measuring and Maximizing Customer Lifetime Value B Y V. KUMAR AND B HARATH R AJAN MANAGING FOR CUSTOMER LOYALTY IS NOT THE SAME AS MANAGING FOR PROFITABILITY. BY CONCENTRATING

### PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies

PROFITABLE CUSTOMER ENGAGEMENT Concepts, Metrics & Strategies V. Kumar Dr V.Kumar Chapter 9 Managing Customers in a Multi Dimensional World Instructor s Presentation Slides 2 Introduction Profitably managing

### Marketing of High-Technology Products and Innovations. Chapter 5: Relationship Marketing: Partnerships and Alliances

Marketing of High-Technology Products and Innovations Chapter 5: Relationship Marketing: Partnerships and Alliances Questions to Consider What are the types of partnerships high-tech companies form? What

### STRATEGIC MARKETING MANAGEMENT (EMBA 8250) SYLLABUS

STRATEGIC MARKETING MANAGEMENT (EMBA 8250) SYLLABUS Summer, 2015 Professor: V. Kumar J. Mack Robinson College of Business Georgia State University Office Hours: By appointment Email: vk@gsu.edu Course

### Customer Relationship Management

V. Kumar Werner Reinartz Customer Relationship Management Concept, Strategy, and Tools ^J Springer Part I CRM: Conceptual Foundation 1 Strategic Customer Relationship Management Today 3 1.1 Overview 3

### Customer Lifetime Value Formula. Concepts, components and calculations involving CLV

Customer Lifetime Value Formula Concepts, components and calculations involving CLV Table of Contents 1. Customer Lifetime Value... 3 2. Using present value of future cash flows in CLV... 5 3. Components

Get Better Business Results From the Four Stages of Your Customer Lifecycle Stage 1 Acquisition A white paper from Identify Unique Needs and Opportunities at Each Lifecycle Stage It s a given that having

### Chapter 2: Relationship Marketing and the Concept of Customer Value

Chapter 2: Relationship Marketing and the Concept of Customer Value Overview Topics discussed: The Link between CRM and Database Marketing, and the Importance of Customer Value Satisfaction-Loyalty-Profit

UNIVERSITY OF GHANA (All rights reserved) UGBS SECOND SEMESTER EXAMINATIONS: 2013/2014 BSc, MAY 2014 ECCM 302: CUSTOMER RELATIONSHIP MANAGEMENT (3 CREDITS) TIME ALLOWED: 3HRS IMPORTANT: 1. Please read

### Customer Relationship Management

Customer Relationship Management Written and prepared by Dr. V. Kumar, University of Connecticut * In today s dynamic and ever-changing business environment, especially in the realm of e-commerce, it is

### Using SAS Enterprise Miner for Analytical CRM in Finance

Using SAS Enterprise Miner for Analytical CRM in Finance Sascha Schubert SAS EMEA Agenda Trends in Finance Industry Analytical CRM Case Study: Customer Attrition in Banking Future Outlook Trends in Finance

### Chapter 5: Customer Analytics Part I

Chapter 5: Customer Analytics Part I Overview Topics discussed: Traditional Marketing Metrics Customer Acquisition Metrics Customer Activity Metrics Popular Customer-based Value Metrics 2 Traditional and

### Is there an ROI from Social Media Marketing?

TOM PISELLO, CHAIRMAN & FOUNDER Blog: http://blog.alinean.com/ Twitter: @tpisello http://www.alinean.com http://www.fightfrugalnomics.com Is there an ROI from Social Media Marketing? Agenda 1. Need for

### CUSTOMER EXPERIENCE MARKETING: LIFE INSURANCE

CUSTOMER EXPERIENCE MARKETING: LIFE INSURANCE Multichannel Marketing August 1, 2011 Today s Panelists Deb Gustafson Vice President Market Management Epsilon Targeting Edgar Rodriguez Executive Vice President

### MBA for EXECUTIVES REUNION 2015 REUNION 2015 WELCOME BACK ALUMNI! Daniel McCarthy Peter Fader Bruce Hardie

MBA for EXECUTIVES REUNION 2015 MBA for EXECUTIVES REUNION 2015 WELCOME BACK ALUMNI! CLV, From Inside and Out Daniel McCarthy Peter Fader Bruce Hardie Wharton School of the University of Pennsylvania November

### The next question, having MEASURING CUSTOMER LIFETIME VALUE

Small increases in customer retention rates lead to huge boosts in your overall customer lifetime profits. MEASURING CUSTOMER LIFETIME VALUE By: Robin Foster, Practice Leader for ROI Analysis, Avaya The

WHAT IS CUSTOMER LIFETIME VALUE? By: Laura Bassett, Director of Marketing, Customer Experience and Emerging Technologies, Avaya Customer lifetime value (CLV) is both a concept and a measure. At its core,

### Raising the Bar of Customer Loyalty Programs

Raising the Bar of Customer Loyalty Programs Identifying Your Best Customers and Driving Their Most Profitable Behavior by Carlos Dunlap, Vice President, Strategic Services, Maritz Loyalty Marketing A

### Retail Analytics: Game Changer for Customer Loyalty

Cognizant 20-20 Insights Retail Analytics: Game Changer for Customer Loyalty By leveraging analytics tools and models, retailers can boost customer loyalty by creating a personalized shopping experience

SAS Marketing Optimization Neil Hayward Customer Intelligence Solutions Program Manager SAS EMEA Copyright 2003, SAS Institute Inc. All rights reserved. Business pain! I m not getting the best financial

### Choosing the Right Metrics to Maximize Profitability and Shareholder Value

Journal of Retailing 85 (1, 2009) 95 111 Choosing the Right Metrics to Maximize Profitability and Shareholder Value J. Andrew Petersen a,, Leigh McAlister b, David J. Reibstein c, Russell S. Winer d, V.

### SYLLABUS. B.B.A. V SEM Subject Customer Relationship Management

SYLLABUS B.B.A. V SEM Subject Customer Relationship Management UNIT I Introduction to CRM: Definition and concepts of CRM, Components of CRM, Understanding the goal of CRM and Customer Touch Points. UNIT

### RFM Analysis: The Key to Understanding Customer Buying Behavior

RFM Analysis: The Key to Understanding Customer Buying Behavior Can you identify your best customers? Do you know who your worst customers are? Do you know which customers you just lost, and which ones

### The lifetime value of a Land Line Phone Subscriber

The lifetime value of a Land Line Phone Subscriber Lifetime value is a key method of determining the value of a telecom subscriber, and of evaluating the strategies used to market to these subscribers.

### Customer Relationship Management Lecture 1: Introduction - CRM Jargons, Value Systems and Value Chains. Mehran Rezaei

Customer Relationship Management Lecture 1: Introduction - CRM Jargons, Value Systems and Value Chains Mehran Rezaei سرفصل مطالب این جلسه ebiz و ecommerce آنچه مد نظر ماست از نقطه نظر گرایش تجارت الکترونیکی

### Visa Consulting and Analytics

Visa Consulting and Analytics Issuer Acquirer Retailer Analytics and Information services: Issuer menu Issuers - Visa data driven insights We are in a unique position to inform our clients about performance

### Managing Customer Retention

Customer Relationship Management - Managing Customer Retention CRM Seminar SS 04 Professor: Assistent: Handed in by: Dr. Andreas Meier Andreea Iona Eric Fehlmann Av. Général-Guisan 46 1700 Fribourg eric.fehlmann@unifr.ch

### Chapter 11: Campaign Management

Chapter 11: Campaign Management Overview Topics discussed: Campaign Management Process Campaign Planning and Development Campaign Execution Analysis & Control Campaign Feedback 2 Campaign A series of interconnected

### 10/6/2014. THE CUSTOMER JOURNEY ARTS Data Model Foundation for Customer Centric Retail Applications and Services

THE CUSTOMER JOURNEY Data Foundation for Centric Retail Applications and Services Agenda Introduction centered retailing Defining customer Understanding the customer journey Retail context for a customer

### Maximizing Your Customer Experience Management Metrics

Maximizing Your Customer Experience Management Metrics For Internal Use Customer Experience Is The New Brand Image Other people s experiences influence everyone Good and bad experiences impact non-customers

Customer Lifetime Value Pega Marketing for Financial Services 7.21 May 2016 Introduction This document describes how Pega Marketing for Financial Services delivers a solution to calculate Customer Lifetime

### Using a Customer-Level Marketing Strategy to Enhance Firm Performance: A Review of Theoretical and Empirical Evidence

JOURNAL OF THE ACADEMY Kumar, 10.1177/0092070305275857 Petersen OF / MARKETING SCIENCE STRATEGY ARTICLE FALL 2005 Using a Customer-Level Marketing Strategy to Enhance Firm Performance: A Review of Theoretical

### DIRECT RESPONSE FOUNDATIONS

DIRECT RESPONSE FOUNDATIONS Chapter 4 In What Ways Is The Internet A Direct-Response Medium/ Channel? And Why Does It Matter? 4 Is OF DIRECT/INTERACTIVE MARKETING 4 P&G CHEER FREE & GENTLE GENERIC MARKETING

### Assessing the Economic Value of Making the Right Customer Satisfaction Decisions and the Impact of Dissatisfaction on Churn

Assessing the Economic Value of Making the Right Customer Satisfaction Decisions and the Impact of Dissatisfaction on Churn By Joel Barbier, Andy Noronha, and Amitabh Dixit, Cisco Internet Business Solutions

### The Definitive Guide to Lifetime Value THE DEFINITIVE GUIDE TO CUSTOMER LIFETIME VALUE

THE DEFINITIVE GUIDE TO CUSTOMER LIFETIME VALUE 1 About the Author Dominique Levin VP of Marketing AgilOne Follow Me on Twitter @NextGenCMO Dominique is the VP of marketing at AgilOne. She joined from

### Seven Dashboard Metrics Financial Services Marketers Can t Afford to Overlook in 2014

Seven Dashboard Metrics Financial Services Marketers Can t Afford to Overlook in 2014 MARKETING SERVICES Like other financial services marketers, you likely track numerous metrics to determine and prove

### Customer relationship management MB-104. By Mayank Kumar Pandey Assistant Professor at Noida Institute of Engineering and Technology

Customer relationship management MB-104 By Mayank Kumar Pandey Assistant Professor at Noida Institute of Engineering and Technology University Syllabus UNIT-1 Customer Relationship Management- Introduction

### CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES

CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES Chapter 1: Introduction to CRM Selected definitions of CRM 1 CRM is an information industry term for methodologies, software, and usually Internet

### Customer Relationship Management. Joseph FX Zahra

Customer Relationship Management Joseph FX Zahra The New Marketing Paradigm CRM.. Is a multi functional core business strategy that sets out who to serve, and what and how to serve them. CRM. An IT enabled

### Customer management activities at firms involve making consistent decisions over time, about: (a) which

Vol. 27, No. 4, July August 2008, pp. 585 599 issn 0732-2399 eissn 1526-548X 08 2704 0585 informs doi 10.1287/mksc.1070.0319 2008 INFORMS Practice Prize Report The Power of CLV: Managing Customer Lifetime

### Insurance customer retention and growth

IBM Software Group White Paper Insurance Insurance customer retention and growth Leveraging business analytics to retain existing customers and cross-sell and up-sell insurance policies 2 Insurance customer

### Customer Lifetime Value and it`s determination using the SAS Enterprise Miner and the SAS OROS-Software

Customer Lifetime Value and it`s determination using the SAS Enterprise Miner and the SAS OROS-Software SAS Institute Germany Fachhochschule Nuertingen Monika Seyerle To acquire more customers Business

### Chapter 4: Implementing the CRM Strategy

Chapter 4: Implementing the CRM Strategy Overview Topics discussed: Elements of a CRM System Customer Interphase / Touch Points CRM Applications Return on Investment (ROI) of CRM CRM Costs Why is ROI of

### EVALUATION AND MEASUREMENT IN MARKETING: TRENDS AND CHALLENGES

EVALUATION AND MEASUREMENT IN MARKETING: TRENDS AND CHALLENGES Georgine Fogel, Salem International University INTRODUCTION Measurement, evaluation, and effectiveness have become increasingly important

### Customer Relationship Management A Databased Approach

Customer Relationship Management A Databased Approach V. Kumar Werner J. Reinartz Instructor s Presentation Slides Chapter Six Customer Value Metrics: Concepts and Practices Topics Discussed Popular Customer-based

### Analytics: A Powerful Tool for the Life Insurance Industry

Life Insurance the way we see it Analytics: A Powerful Tool for the Life Insurance Industry Using analytics to acquire and retain customers Contents 1 Introduction 3 2 Analytics Support for Customer Acquisition

### Get more from less. BT Expedite. How to build a prioritised CRM strategy in five steps. White paper

Get more from less How to build a prioritised CRM strategy in five steps BT Expedite White paper Contents Executive summary...3 What is CRM and where is it going?...4 Get more from less: create a prioritised

### Best Practice ROI Marketing

Mark Jeffery Center for Research in Technology and Innovation Kellogg School of Management mjeffery@kellogg.northwestern.edu 847-467-5509 Copyright Mark Jeffery and the Kellogg School of Management 2007.

### Predictive Analytics Applications for Retailers

This document has been help foster conversations about the creation of an enterprise-wide analytics strategy. The topics discussed should help Retailers identify opportunities in customer interaction,

### Data Science & Big Data Practice

INSIGHTS ANALYTICS INNOVATIONS Data Science & Big Data Practice Customer Intelligence - 360 Insight Amplify customer insight by integrating enterprise data with external data Customer Intelligence 360

### Ma r k e t i n g RO I :

Ma r k e t i n g RO I : playing to win On the profit scorecard, ROI is the measure that counts. By James D. Lenskold There is no better example of events measured by winners and losers than sports games.

### A CRM Approach To Customer Profitability

A CRM Approach To Profitability Michael Meltzer Techniques That Lead To Success AMT ACTIVE MANAGEMENT TECHNIQUES A CRM Approach To Profitability A CRM approach to customer profitability relationship management

### CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CII Institute of Logistics

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CII Institute of Logistics Session map Session1 Session 2 Introduction The new focus on customer loyalty CRM and Business Intelligence CRM Marketing initiatives Session

White Paper Measuring Customer Lifetime Value Abstract Being able to measure customer value is a prerequisite for effective customer relationship management and data-driven marketing strategy, as it allows

### Relationship Marketing. SHSMD Luncheon October 5, 2007 Leean Kravitz Mudhouse Advertising

Relationship Marketing SHSMD Luncheon October 5, 2007 Leean Kravitz Mudhouse Advertising What is relationship marketing? Marketing designed to create, maintain, and enhance strong relationships with customers

### 7 th July. Strategic Technology Management Institute

Customer Data Analytics Dr. Goh Khim Yong Infocomm Professional Development Forum 7 th July 2011 Strategic Technology Management Institute 1 Bio and Background Background Business Administration (Ph.D.,

### 27 Forest Hill Drive 978 475-4589 Andover, MA 01810 www.jpdassoc.com E-mail: JPD_Assoc@hotmail.com

Calculating emarketing s ROI Today there are huge opportunities for emarketing (using a Marketing Automation application) to make significant contributions to business results. At the same time, the costs

### Customer Lifetime Value vs. ROI Marketing Measures

Customer Lifetime Value vs. ROI Marketing Measures Supporting Analysis for Marketing Management Article Marketing ROI: Playing to Win The article Marketing ROI: Playing to Win (Jim Lenskold, Marketing

### 30 Proven Strategies to Improve Onboarding, Cross- Selling and Retention. JIM MAROUS PUBLISHER Bank Marketing Strategy @jimmarous

30 Proven Strategies to Improve Onboarding, Cross- Selling and Retention JIM MAROUS PUBLISHER Bank Marketing Strategy @jimmarous #fbforum2014 Onboarding A series of targeted multi-channel communications

### CHAPTER VII SUMMARY OF MAJOR FINDINGS AND RECOMMENDATIONS

CHAPTER VII SUMMARY OF MAJOR FINDINGS AND RECOMMENDATIONS 395 7.1 Findings Related to Secondary Data In the initial phase the analysis of secondary indicates that CRM is emerging as a strategic factor

### Continuous Customer Dialogues

Continuous Customer Dialogues STRATEGIES FOR GROWTH AND LOYALTY IN MULTI-CHANNEL CUSTOMER-ORIENTED ORGANIZATIONS whitepaper TABLE OF CONTENTS: PAGE Overview...3 The Continuous Customer Dialogue Vision...4

### Chapter 1: Strategic Customer Relationship Management Today

Chapter 1: Strategic Customer Relationship Management Today Overview Topics discussed: From the marketing to the customer concept CRM and customer value The concept of CRM CRM from a business strategy

### Creating Customer and Company Value through CRM. Richard Staelin Edward & Rose Donnell Professor of Business Administration Duke University

Creating Customer and Company Value through CRM Richard Staelin Edward & Rose Donnell Professor of Business Administration Duke University What is CRM? Strategic CRM Operational CRM Analytical CRM 2 Core

### Driving Profits from Loyalty

Driving Profits from Loyalty Overview 1 P a g e 5 Steps to Driving Profit from Loyalty 1. Customer Portfolio Analysis This is the first step on the road to customer profitability where we can begin to

### OPTIMIZE SALES, SERVICE AND SATISFACTION WITH ORACLE DEALER MANAGEMENT

OPTIMIZE SALES, SERVICE AND SATISFACTION WITH ORACLE DEALER MANAGEMENT KEY FEATURES Manage leads, configure vehicles, prepare quotes, submit invoice and process orders Capture customer, vehicle and service

### q-papers q-papers Return on Investment: Justifying CRM Investments Enterprise Measures Steve Schultz, Quaero

Return on Investment: Justifying CRM Investments Steve Schultz, Quaero Measurement is an essential part of CRM. It permeates much of our marketing vocabulary customer satisfaction level, customer lifetime

MARKETING ENGINEERING FOR EXCEL TUTORIAL VERSION 150211 Tutorial Customer Lifetime Value Marketing Engineering for Excel is a Microsoft Excel add-in. The software runs from within Microsoft Excel and only

### Chapter 3: Strategic CRM

Chapter 3: Strategic CRM Overview Topics discussed: CRM perspectives The components of strategic CRM Steps in developing a CRM strategy Case Study: CRM implementation at International Business Machines,

### Predictive Analytics for Life Insurance: How Data and Advanced Analytics are Changing the Business of Life Insurance Seminar May 23, 2012

Predictive Analytics for Life Insurance: How Data and Advanced Analytics are Changing the Business of Life Insurance Seminar May 23, 2012 Session 4 Marketing Presenters Lindsay R. Resnick Mitchell R. Katcher,

### Customer Analysis CUSTOMER VALUE CUSTOMER CUSTOMER ASSESSMENT SEGMENTATION MANAGEMENT

Customer CUSTOMER VALUE CUSTOMER CUSTOMER ASSESSMENT SEGMENTATION MANAGEMENT Companies are continuing to adopt a more customer-centric approach to doing business, realizing that in this competitive marketplace,

### The Heart of the Matter: The Challenge of Customer Lifetime Value

CRM Forum Resources http://www.crm-forum.com The Heart of the Matter: The Challenge of Customer Lifetime Value Valoris Abram Hawkes Copyright Valoris Abram Hawkes, 2000 THE HEART OF THE MATTER: THE CHALLENGE

### Application of Decision Sciences to Solve Business Problems. Customer Relationship Management

Application of Decision Sciences to Solve Business Problems Customer Relationship Management Make targeted decisions for effective relationship management with the customer through every phase of their

### 10 Strategies for an Award-winning Onboarding Process

10 Strategies for an Award-winning Onboarding Process WHITE PAPER MARKETING SERVICES In December 2011, Harland Clarke Marketing Services received the prestigious Gold Award for Marketing Strategies from

### CASE STUDY. Ren s Pets Depot. renspets.com. pet food & products

CASE STUDY Ren s Pets Depot renspets.com pet food & products The flexibility of Sweet Tooth software allows us to offer our rewards program online and instore. This enables our customer to view and earn

### The Case for Improving the B2B Customer Experience

The Case for Improving the B2B Customer Experience How better customer experiences can help you drive profitable growth and create competitive advantage I preferred the Other Brand s product but I bought

### MANAGING EVOLVING CUSTOMER EXPECTATIONS. Chinmaya Joshi Pre Sales Manager, Retail Banking. Break through.

MANAGING EVOLVING CUSTOMER EXPECTATIONS Chinmaya Joshi Pre Sales Manager, Retail Banking Break through. Table of contents 01 Operational Customer Management 02 Bank Readiness Report 03 04 How SunGard Can

### E-Commerce & CRM Building Relationships, Satisfaction, and Loyalty

Lecture 8 E-Commerce & CRM Building Relationships, Satisfaction, and Loyalty CRM Defined a combination of business process & technology that seeks to understand a company s customers from the perspective

### Oracle istore. Deliver Intelligent, Personalized Customer Experiences

Oracle istore Oracle istore is the Enterprise E-Business Suite ecommerce application that provides a personalized, comprehensive and cost-effective Internet sales channel. istore is a key component of

### Acquiring new customers is 6x- 7x more expensive than retaining existing customers

Automated Retention Marketing Enter ecommerce s new best friend. Retention Science offers a platform that leverages big data and machine learning algorithms to maximize customer lifetime value. We automatically

### Customer Care for High Value Customers:

Customer Care for High Value Customers: Key Strategies Srinivasan S.T. and Krishnan K.C. Abstract Communication Service Providers (CSPs) have started investing in emerging technologies as a result of commoditization

### Exceptional Customer Experience AND Credit Risk Management: How to Achieve Both

Exceptional Customer Experience AND Credit Risk Management: How to Achieve Both Lynn Brunner Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions,

### Creating Customer Value, Satisfaction, and Loyalty 9/5/2008. Building Customer Value and Satisfaction

Chapter 4 Creating Customer Value, Satisfaction, and Loyalty 4-1 Chapter Questions How can companies deliver customer value, satisfaction, and loyalty? What is the lifetime value of a customer, and why

### Database Direct Response Marketing Personal Selling

11 Chapter Eleven Database Direct Response Marketing Personal Selling 11-1 11 Selling Words 1400 Words - Copywriting service Business development specialist Generate prospects Collect information Qualify

### Maximizing Guest Experiences

Maximizing Guest Experiences One Platform: Cross Functional and Scalable Central Data Warehouse with Hospitality Architecture Profile De-duplication Engine 360 Degree Profile of Guests and Prospects ESP

### How Organisations Are Using Data Mining Techniques To Gain a Competitive Advantage John Spooner SAS UK

How Organisations Are Using Data Mining Techniques To Gain a Competitive Advantage John Spooner SAS UK Agenda Analytics why now? The process around data and text mining Case Studies The Value of Information

### The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,

### The Case for Improving the B2B Customer Experience

The Case for Improving the B2B Customer Experience How better customer experiences can help you drive profitable growth and create competitive advantage I preferred the Other Brand s product but I bought

### ORACLE CRM ON DEMAND INSURANCE DISTRIBUTION MANAGEMENT SOLUTION

ORACLE CRM ON DEMAND INSURANCE DISTRIBUTION MANAGEMENT SOLUTION For many insurance carriers, sales through indirect channels form the largest proportion of their business. However, most carriers do not

### Corporate value creation:

Corporate value creation: Customer value 2008 report an SAP company Contents Foreword........................................................................................ 02 Executive summary...............................................................................

### Customer Lifecycle Management How Infogix Helps Enterprises Manage Opportunity and Risk throughout the Customer Lifecycle

Customer Lifecycle Management How Infogix Helps Enterprises Manage Opportunity and Risk throughout the Customer Lifecycle Analytics can be a sustained competitive differentiator for any industry. Embedding

### Increasing Marketing ROI with Customer Analytics. 2013 IBM Corporation

Increasing Marketing ROI with Customer Analytics 1 The agenda The Marketer s Evolving Role Data/Analytics Based Decisions Customer Analytics to Increase ROI ROI in Action 2 The Marketer s Evolving Role:

### (Week 09) A03. Customer Value Analysis for CRM. Electronic Commerce Marketing

(Week 09) A03. Customer Value Analysis for CRM Electronic Commerce Marketing Course Code: 166186-01 Course Name: Electronic Commerce Marketing Period: Autumn 2015 Lecturer: Prof. Dr. Sync Sangwon Lee Department:

### Multi-channel Marketing

RIGHT TIME REVENUE OPTIMIZATION How To Get Started RIGHT TIME REVENUE OPTIMIZATION How To Get Started Summary: The Short List Here s our suggested short list from this paper: Multi-channel marketing is

### 10 Key Elements for an Effective Onboarding Strategy. Onboarding White Paper 2008. 2008 Harland Clarke Corp.

10 Key Elements for an Effective Onboarding Strategy Onboarding White Paper 2008 2008 Harland Clarke Corp. When it comes to engaging, growing and retaining members, an effective onboarding strategy is

### SERVICE TRANSFORMATION: THE BUSINESS CASE

WRITTEN BY: SUMAIR DUTTA, CHIEF CUSTOMER OFFICER MAY 2014 Page 2 of 7 SUMMARY Customer service is king. For most organizations, this is no longer just a marketing tagline but is a mantra that governs how

### Customer Equity-Driven Marketing Mix Decisions at Wachovia Bank

Customer Equity-Driven Marketing Mix Decisions at Wachovia Bank MSI Conference on Marketing Metrics and Financial Performance December 6 8, 2006 Dan Thorpe SVP, Director of Statistics & Modeling at Wachovia