Marketing and the Measuring of Customer Lifetime Value ( CLV)

Customer Value: Business Value

Customer Lifetime ValueCustomer Acquisition CostDr. Salvador Treviño-MartinezNational Alumni Relations DirectorGlobal Marketing Strategy ProfessorTecnológico de MonterreyEGADE Business School

[email protected] - double click images for credit and sources

AGENDA CUSTOMER VALUE

BUILDING CUSTOMER VALUE

CUSTOMER LIFETIME VALUE CONCEPT

FORMULA

APPLIYING IT TO YOUR BUSINESS

CUSTOMER AQUISITION COST CONCEPT

FORMULA

APPLYING IT TO YOUR BUSINESS

FINAL REMARKS


MARKETING CLUES TO CUSTOMER VALUE

EXCHANGESATISFACTIONMUTUAL BENEFIT


WISEGEEK.COM DEFINES CUSTOMER VALEIS THIS CUSTOMER VALUE?

http://www.wisegeek.com/what-is-customer-value.htm


NIKITA JETHANI´S PROPOSITION TO BUILDING CUSTOMER VALUE

IS THIS HOW YOU BUILD CUSTOMER VALUE?

http://lurnq.com/mobile/lesson/Introduction-To-Marketing-And-Marketing-Process/


Customer Lifetime Value What is the value of a business relationship

over time? Loyalty over promotion value Measuring the so-called VALUE Two approaches: Qualitative AND

QUANTITATIVE


Customer Lifetime ValueQualitative approaches

http://www.baylor.edu/business/kellercenter/news.php?action=story&story=127265


Customer Lifetime ValueQuantitative ApproachFrom Farris and coauthors´ Marketing Metrics Textbook:

CLV IS DEFINED AS: THE NET PRESENT VALUE OF ALL FUTURE CUSTOMER CASH FLOWS DURING ITS RELATIONSHIP WITH THE COMPANY

FORMULA:

CLV =


EXCERCISE From zeromillion.com site, a useful spreadsheet

http://www.zeromillion.com/marketing/determining-lifetimevalue.html

Instructions

1. Download spreadsheet

2. Enter actual or estimate information

3. What does the outcome value mean?




CUSTOMER AQUISITION COSTGENERAL APPROACH

MUCH SIMPLER THAN CUSTOMER LIFETIME VALUE

THE IDEA IS TO ESTIMATE HOW MUCH MONEY IS SPENT GENERATING, MAINTAINING OR LOSING CUSTOMERS

GREAT INSIGHTS FROM THE DATABSE MARKETING INSTITUTE

http://www.dbmarketing.com/articles/Art161.htm


EXCERCISE http://

blog.priceintelligently.com/blog/bid/189868/A-Guide-to-SaaS-Metrics-and-Your-Pricing-Strategy-Customer-Acquisition-Cost

How do you apply this formula in your business?

What expenditure-items can you consider “acquisition costs”

What does the outcome of this formula imply?

http://blog.priceintelligently.com/blog/bid/189868/A-Guide-to-SaaS-Metrics-and-Your-Pricing-Strategy-Customer-Acquisition-Cost




FINAL REMARKS IMPORTANCE OF CUSTOMER DATA AND RECORDS NON-INTRUSIVE; PERMISSION MARKETING APPROACHES FORMULAS ARE ALWAYS SUBJECTIVE AND SUBJECT TO

IMPROVEMENT DATA EVOLVES OVER TIME, THINK IN TERMS OF FUTURE

RELATIONSHIPS CUSTOMER LIFETIME VALUE AND CUSTOMER AQUISITION

FORM ARE TOOLS FOR DECISIÓN MAKING. SERVICING THE CUSTOMER IS WHAT REALLY MATTERS

Marketing and the Measuring of Customer Lifetime Value ( CLV)

Marketing

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