May 202015
 

CLV and Customer Relationship Management (CRM) The customer lifetime value equation essentially views a customer as an income stream. So instead of considering the customer’s purchases as single transactions, the marketing focus becomes creating ongoing series of profitable transactions. These ongoing transactions are created through customer relationship management practices and Read full article…

May 202015
 
The Benefits of Customer Lifetime Value

Why calculate customer lifetime value? Why has customer lifetime value – along with many other marketing metrics – becoming more important for marketers to use and understand? One of the key drivers is the shift from “art” to “science” in the marketing profession. For many years, marketing was essentially a Read full article…

May 202015
 

What is Customer lifetime value? Customer lifetime value is a measure of customer profitability over time. To help explain this concept, let’s start with a formal definition of customer lifetime value (CLV) from a well-regarded marketing metrics textbook. In the textbook Marketing Metrics: the definitive guide to measuring marketing performance Read full article…

Feb 192015
 
Calculating customer lifetime value on a step-by-step basis

Customer lifetime value is often called marketing’s golden metric. Certainly in most service industries, customer lifetime value would be a very important marketing metric. Customer lifetime value can be calculated quite simply at times, with a ballpark estimate. This may be appropriate for quick calculations and for general comments within Read full article…

Dec 182014
 

Brand personas are commonly used in customer journey mapping, but are generally helpful in most aspects of marketing strategy development. This is because a brand persona – which is a representation of the typical customer in a target market – helps the firm more clearly understand the consumer. Generally firms Read full article…

Dec 172014
 
Brand Personas

Using Brand Personas in Customer Journey Mapping A fundamental principle of modern day marketing is to segment the market and select appropriate target markets. For more information on the market segmentation process, please refer to the market segmentation study guide. Target markets are smaller parts of the overall market, where Read full article…

Dec 092014
 

What is a customer journey? Let’s start our understanding of customer journey mapping by first understanding what is meant by the “customer’s journey”. As suggested by the name, a customer journey is the progression of a consumer (initially a non-customer of a brand) in their journey to becoming a customer Read full article…

Dec 092014
 
Main phases of a customer journey

Three main phases of a customer journey Customer journeys, particularly for high involvement purchases, may take years to lead to a purchase decision. For example, a young consumer buying their first brand new car would have years of experience of seeing cars, seeing promotional campaigns and product placement, being involved Read full article…

Sep 042014
 

  There are a number of limitations of customer satisfaction in terms of relying too heavily on this marketing metric. It is, therefore, important to understand the various limitations in order to utilize the results of CSat research/scores appropriately. Expected versus delivered value is being measured The basic premise of Read full article…