Understanding the Economics in Customer Relationship Management
Learn how to apply customer lifetime value calculations in making key marketing decisions with this free online course.
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This course on Understanding the Economics in Customer Relationship Management focuses on utilising customer lifetime value calculations in making critical marketing decisions. You will learn how marketing evolved from a product-centric marketing concept to a customer-centric marketing concept. This course will demonstrate how the customer-centric marketing concept has helped enhance the growth of businesses. You will be introduced to customer lifetime value (CLV) and the factors that contribute to the CLV. With CLV, a business can estimate economically how much customers could spend in their business during their lifetime. Examples are presented to demonstrate how to calculate the customer lifetime value of Business-to-Business (B2B) and Business to Consumer (B2C) markets via an excel sheet. You will be exposed to the essence of customer loyalty and the types of customer loyalty. Branding is vital to help companies to gain and retain customers. This course works through all of these concepts.
Furthermore, you will be presented with a case study of the Rosewood company’s branding problem. You will be shown the differences between individual branding and corporate branding. The branding problem of Rosewood company is analysed in the excel model and the customer lifetime value calculation utilised to determine the best branding strategy for the company. In addition, you will be shown how customer lifetime value can help marketing managers make good marketing decisions. While the customer lifetime value of complex market data can be calculated on excel, the CLV of simpler market data can be calculated by using customer lifetime value formulas. You will learn how to derive the customer lifetime value for markets in which customers pay before or after a service. You will be shown how to apply the customer lifetime value (CLV) formulas in performing basic CLV calculations. Lastly, you will be shown how to calculate the customer lifetime value for a cohort.
It is essential for businesses to estimate the customer lifetime value (CLV) of their consumers, as it helps determine the profitable customers and the less profitable customers. This will also uncover the purchase patterns of the more valuable customers. If a business knows its less profitable customers, it can proffer strategies on how to handle them, so they don't clog the business's resources that could attract more profitable customers. If you are a business owner or a potential marketing expert, this course will take you through the importance of customer lifetime value in developing a business. You will also be presented with practical case studies to understand how customer lifetime value is critical to making good marketing decisions. Should you be looking to be a desired marketer or customer relationship management expert, this course is your stepping stone to achieving that goal. Start this course today and be ahead of your colleagues in understanding customer relations!Start Course Now
Economics of Customer Relationship Management
Economics of Customer Relationship Management - Learning Outcomes
Customer Lifetime Value Calculation
Benefits of Customer Loyalty and Branding
Branding Strategy - Case Study
Maths behind Customer Lifetime Value
Economics of Customer Relationship Management - Lesson Summary
By the end of this course, you will be able to:
- Define customer-centric marketing and customer lifetime value
- Explain the impact of customer-centric marketing in business
- Recall the importance of customer loyalty and branding in business
- Discuss how customer lifetime value calculation can be used to determine the best branding strategy for a company
- Calculate the customer lifetime value for B2B and B2C markets
- Explain how to derive the basic Customer Lifetime Value formula
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