Customer Profitability And Lifetime Value Elie Ofek Pdf


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customer profitability and lifetime value elie ofek pdf

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Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing. The Path to Profitability, Foundations and Trends.

Customer Profitability and Lifetime Value Harvard Case Solution & Analysis

The major purpose of this article is to create and clarify differences. Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing. Implications for marketing strategy and customer relationship management are briefly discussed. Ofek, Elie. Elie Ofek.

Customer profitability and lifetime value [Case no. 9503019]

Below are the available bulk discount rates for each individual item when you purchase a certain amount. Register as a Premium Educator at hbsp. Publication Date: August 07, Source: Harvard Business School. Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing.


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Customer Profitability and Lifetime Value Case Solution & Answer

Technical notes are developed solely as the basis for class discussion. Technical notes are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Companies with recurring revenues from customers often use customer relationship management CRM software to identify profitable customer segments and sub-segments and calculate the customer lifetime value of each type of customer. However, complex software applications are not always necessary for such calculations, as they simply require estimates of certain customer metrics, including the cost of contact, likelihood of purchase, purchase margin, and attrition or conversely, retention rate. Using this data, a company can make important calculations about its target customers and the profit potential of various marketing efforts.

Using Customer Relationship Managment to Analyse Lifetime Value of Customer

Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing. Implications for marketing strategy and customer relationship management are briefly discussed. Provides students with a basic understanding of the analytic tools necessary for calculating customer acquisition costs and customer lifetime value. Aug 7, Revised: Nov 22, Customer relationship management, Customer retention, Direct marketing, Market analysis, Marketing planning, Marketing strategy, New product marketing, Personalization, Sales, Total customer value, Value chains. Industry and Background Note Popular. Educator Copy.

Below are the available bulk discount rates for each individual item when you purchase a certain amount. Register as a Premium Educator at hbsp. Publication Date: August 07, Source: Harvard Business School. Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing.

Note: this document may be updated in the future. Please check back for the latest version. As the core marketing course in the program, the class is designed to provide you with an understanding of the basic marketing management concepts and to expose you to strategic marketing decision making. Specifically, the course will cover topics relating to the marketing process, consumer analysis, segmentation, targeting and positioning, designing marketing strategy, and tactical implementation. The three main objectives are:. The success of this course depends on everybody's effort to prepare before class.


Customer Profitability and Lifetime Value. By: Elie Ofek. Format:Print; | Language:​English; |.


However, the move to online transactions made it attractive to integrate customer data into central locations, and improvements in data storage technology made such integration possible. Companies began spending vast sums on CRM software solutions that would, in theory, integrate all of their customer data and provide a comprehensive picture of customer behavior across channels, product lines, and business units. This capability would enable companies to build a competitive advantage by fostering stronger customer relationships, reducing customer attrition, and growing margins by better serving customers needs. In practice, this did not happen.

This book presents strategies that put the customer at the center of an enterprise. It elaborates on the reasons for viewing customers as assets that a firm needs to acquire, develop and cultivate in order to generate profitable relationships, and champions customer profitability as the metric for measuring business performance. It broadens the definition of customer value beyond tangible benefits and price to include both tangible and intangible benefits and total ownership costs, while embracing a variety of unique customer needs. Competitive Advantage of Customer Centricity maps a new journey that entire organizations must undertake in order to achieve these lucrative goals.

It generally describes the contribution margin that a customer realizes during his entire "customer life", discounted to the point in time. The CLV can thus be understood as the average value that a customer has for a company over the years or will have in the future. For its calculation, therefore, not only historical revenues but also expected future revenues are taken into account customer potential.

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2 Comments

Kipa C.
06.12.2020 at 15:19 - Reply

Customer Profitability and Lifetime Value. by Elie Ofek.

Allyriane B.
10.12.2020 at 21:56 - Reply

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