In a certain country ½ of 5 = 3. If the same proportion holds, what is the value of 1/3 of 10 ?
Sample Solution
upporters can become Friends and the lifetime value will increase while the income of War Child will rise. 1.2.5 Customer lifetime value Good CRM helps to create customer satisfaction. Customer satisfaction brings loyal customers and positive word of mouth. Studies show that less satisfied customers, will bring an enormous drop in loyalty of the entire company. This is the reason why companies need to focus more on customer delight and not only on customer satisfaction. Customer delight will bring customer life time value. Kotler and Armstrong (2014) explain the customer lifetime value as all the purchases a customer makes over an entire lifetime of patronage. (Estrella-Ramón, Sánchez-Pérez, Swinnen, VanHoof, 2013) are writing about the benefits of Customer lifetime value. To start, CLV gives an indication about the future health of a company and the customer profitability (CP) of individual customers. Customer profitability can be defined as the profit a company gets from a customer after the expenses to support that customer. So it is the revenue a company gets over a period of time minus the support costs of the customer (Estrella-Ramón, Sánchez-Pérez, Swinnen, VanHoof, 2013). It can be difficult to get an indication of these topics by using traditional methods. Thereby, CLV is trustworthy because it has a structured approach to get indications and future forecasts about the cash flow. CLV can be seen as the most popular customer value measure nowadays. Most of the traditional measurements are not specific enough, examples are market share and brand awareness. CLV is focussing on the return on investment on the long term and the future health of the company. 1.2.6 Customer journey To create a customer journey, it is important to understand and identify the current customer journey. It is crucial to know where to begin with the transformation. As mentioned earlier, War Child creates a missed opportunity by not having any suitable approach for the group ââSupporters of third party actionsââ. A lot of organizations exceed in individual interactions with customers. However, many companies have less or no attention at all for the complete customer experience. (Rawson et al., 2013)>
upporters can become Friends and the lifetime value will increase while the income of War Child will rise. 1.2.5 Customer lifetime value Good CRM helps to create customer satisfaction. Customer satisfaction brings loyal customers and positive word of mouth. Studies show that less satisfied customers, will bring an enormous drop in loyalty of the entire company. This is the reason why companies need to focus more on customer delight and not only on customer satisfaction. Customer delight will bring customer life time value. Kotler and Armstrong (2014) explain the customer lifetime value as all the purchases a customer makes over an entire lifetime of patronage. (Estrella-Ramón, Sánchez-Pérez, Swinnen, VanHoof, 2013) are writing about the benefits of Customer lifetime value. To start, CLV gives an indication about the future health of a company and the customer profitability (CP) of individual customers. Customer profitability can be defined as the profit a company gets from a customer after the expenses to support that customer. So it is the revenue a company gets over a period of time minus the support costs of the customer (Estrella-Ramón, Sánchez-Pérez, Swinnen, VanHoof, 2013). It can be difficult to get an indication of these topics by using traditional methods. Thereby, CLV is trustworthy because it has a structured approach to get indications and future forecasts about the cash flow. CLV can be seen as the most popular customer value measure nowadays. Most of the traditional measurements are not specific enough, examples are market share and brand awareness. CLV is focussing on the return on investment on the long term and the future health of the company. 1.2.6 Customer journey To create a customer journey, it is important to understand and identify the current customer journey. It is crucial to know where to begin with the transformation. As mentioned earlier, War Child creates a missed opportunity by not having any suitable approach for the group ââSupporters of third party actionsââ. A lot of organizations exceed in individual interactions with customers. However, many companies have less or no attention at all for the complete customer experience. (Rawson et al., 2013)>
