been increasingly considered in the field of general marketing. However‚ the vast majority of literature on the topic (a) has been dedicated to extolling its use as a decisionmaking criterion; (b) has presented isolated numerical examples of its calculation/determination; and (c) has considered it as part of the general discussions of profitability and discussed its role in customer acquisition decisions and customer acquisition/retention trade-offs. There has been a dearth of general modeling of the
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MANAGING CUSTOMER RELATIONSHIPS 3 CHAPTER 1 MANAGING CUSTOMER RELATIONSHIPS RUTH N. BOLTON AND CRINA O. TARASI Abstract The customer relationship management (CRM) literature recognizes the long-run value of potential and current customers. Increased revenues‚ profits‚ and shareholder value are the result of marketing activities directed toward developing‚ maintaining‚ and enhancing successful company–customer relationships. These activities require an in-depth understanding of the underlying
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Chapter 6 Measuring and Managing Customer Relationships QUESTIONS 6-1 Nonfinancial measures such as customer satisfaction and customer loyalty are important in managing relationships with customers‚ but an excessive focus on improving customer performance with only these metrics can lead to deteriorating financial performance. To balance the pressure to meet and exceed customer expectations‚ companies should also be measuring the cost to serve each customer and the profits earned‚ customer
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Should HubSpot narrow their target by focusing exclusively on either Owner Ollies(OO) or Marketer Marys(MM)? Should they target both? From Appendix‚ the Customer Lifetime Value (CLV) for OO is $4814‚ while the CLV for MM is $10‚625. This can incorrectly lead to a conclusion that OO are less valuable than MM to HubSpot. However‚ we need to factor in the market size and the number of customers that HubSpot has. OO make up the very small and the small company segment in the market (73% of the
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Customer Lifetime Value (SMALL BOOK 167-177) * Customer lifetime value (CLV)‚ is the net present value of the cash flows attributed to the relationship with a customer. * The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction‚ rather than on maximizing short-term sales. * Two approaches to CLV: * Disaggregate (“spreadsheet”)– Complex and cumbersome‚ but allows you to build in any assumptions
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European Management Journal (2013) 31‚ 1– 15 journal homepage: www.elsevier.com/locate/emj Successful customer value management: Key lessons and emerging trends Peter C. Verhoef a b a‚*‚1 ‚ Katherine N. Lemon b‚1 University of Groningen‚ Netherlands; BI Norwegian School of Management‚ Norway Boston College‚ USA; University of Groningen‚ Netherlands KEYWORDS Marketing; Relationship management; Trends; CRM; Customer networks; Social media Summary In the past decade‚ firms have
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Customer Lifetime Value - A Case Study 1 CLV * Group 1: 7 * Group 2: 11.875 * Group 3: 2.5 2 Questions a Your manager asks you what you think might explain the differences in p‚ r‚ and AC between the three groups. What would you say? i Group 1’s higher “p” could be due to the fact that this group of students doesn’t have the meal plan that undergrad students who live on (or close to) campus have. Additionally‚ some MBA students may have longer classes
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customers are elites‚ MBC could charge them a lot. The retention rate is good. Finally‚ the CLV of this campaign is the highest comparing to other segments. 5. Yes. By decreasing the contact cost per person from 1‚000 to 600‚ the acquisition cost for pursuing the Chiyoda ward sponsorship is also reduced to 7‚500. As the variable costs of the Little League customers remain unchanged and the retention rate is 65%‚ the CLV the Chiyoda ward is 4‚722 while Minato is 5714. However‚ the Chiyoda has twice the Little
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Polyphonic Business Strategy 2010 Marketing Plan Table of Contents Target Market 3 The Five Major Record labels 3 Size 3 Growth 4 Profitability 4 Artists 4 Size 4 Growth 4 Producers 5 Size 5 Profitability 5 Marketing Plan 5 Positioning Decision 5 Product decision 6 Pricing decision 6 Distribution decision 6 Promotion 7 Future Markets 7 EXHIBITS AND TABLES 8 Polyphonic HMI is a start-up technology company with a single potentially marketable product: Hit Song Science (HSS). HSS
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HubSpot: Inbound Marketing and Web 2.0 MAR6815 Dr. Korgaonkar April 26‚ 2011 Presented by: Jeannette Chambers Balaji Govindarajulu Table of Contents Introduction 2 HubSpot was born 3 Inbound Marketing 4 Inbound Marketing – Three Distinct Skills 4 Advantages of Inbound Marketing 5 HubSpot Product Components 7 Content Design 7 Search Engine Optimization 7 Lead Tracking and Intelligence 8 HubSpot – Marketplace 8 Customer Funnel 9 HubSpot Customer Funnel 9 HubSpot – Customer
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