Hierarchy of effects model and share of minds and share of heartsThere are numerous hierarchy of effects models that are covered in marketing literature. Probably the most common one was developed in 1961 and is a six stage model usually included in a Philip Kotler marketing textbook. The following diagram is an expansion of the […]
Hierarchy of effects model and share of hearts Find Out More...
Relative market share is a marketing metric used to compare the firm’s market share to the largest competitor in the market.
Relative market shares Find Out More...
Quick Overview of the BCG MatrixFor those people familiar with the BCG matrix, you should recall that the horizontal axis measures relative market share.This is the more important of the two dimensions. A high or low relative market share makes the difference between a cash cow and a dog or a star and a question
Using Relative Market Share in the BCG Matrix Find Out More...
Free online CLV calculatorThe following free online CLV calculator is ideal for quick calculations of customer lifetime value. If you need a more detailed calculation of customer lifetime value, please download the free Excel template for calculating customer lifetime value.How use the free online CLV calculatorYou only need to enter three numbers – into the
Quick Online CLV Calculator Find Out More...
How to Use the Full CLV CalculatorYou only need to enter four numbers – please only type over the numbers in the white cells – the numbers in the orange cells are automatically calculated for you.To calculate the customer lifetime value, you will need to enter:Average customer acquisition costsAverage customer profit contribution per yearAverage annual
Full CLV Calculator (with Financials) Find Out More...
There are five CLV videos available here:Using the free Excel CLV template (available for download on this site)A step-by-step guide to the CLV formula and calculationUsing Excel to calculate CLV (without the above template)A guide to understanding discount ratesAn overview of financial metrics for marketing
Videos on CLV Find Out More...
What does a discount rate do?Discount rate converts future cash flows (that is revenue/profits) into today’s money for the firm. For example, if you put $100 into a bank account today that have 10% interest, then in 12 months’ time you would have $110 in the bank. In this case, $110 next year is equivalent
The Role of the Discount Rate in CLV Find Out More...
Understanding the financial metrics for customer lifetime valueThe full customer lifetime value calculator and the free Excel CLV template both provide a summary outcome for several related financial metrics. Please refer to the image below of the full CLV calculator. As you can see, at the bottom, there are multiple financial metrics listed, including:CLV (with
Financial Metrics for CLV Find Out More...
The Leaky Bucket Theory or Analogy?The leaky bucket theory is more of an analogy than a theory. It is used because it is a nice and simple way of understanding the concept of customer relationship management and how to increase customer lifetime value.The theory uses a bucket that has several holes in the base and
The Leaky Bucket Theory Find Out More...
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 strategies – with the success of
Relationship between CRM and CLV Find Out More...
