Long description
To manage and sustain profitability, marketers need to come up with the right marketing strategies, backed by the right marketing metrics. This book explains how to understand and use the single most important metric: the customer lifetime value metric. Customer Lifetime Value (CLV) is defined as the net present value of future profits from a customer. The beauty of the metric lies in the fact that it is forward-looking, unlike other traditional measures that are based on the past contributions to profit. Hence, it enables marketers to adopt the right marketing activities today to increase future profitability. This book takes an in-depth look at how marketing strategies based on this powerful metric can help manage customer relationship and profitability simultaneously. This book offers 10 strategies that can be effectively used to manage customers profitably.These strategies are aimed at selecting the right customers; managing them profitably and retaining them through optimal allocation of resources; pitching the right product to the right customer at the right time; encouraging multi-channel shopping; preventing churn; improving brand perception and brand value; encouraging word-of-mouth behavior and managing profitable customers. By implementing these strategies, companies can acquire prospective customers with a higher profit potential power companies ahead of the competition.