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Customer Life Value

After 1 person (1 corporation) the customer beginning transaction, summing up the profit and loss which that customer brings to enterprise and the brand, period to end (customer life cycle) via, result index of the marketing which it calculated.

As for arithmetic expression, "the number of annual transaction amount × rate of return × transaction continuous years" becomes the basis, but the fixed customer superior customer "buying frequency" and "per 1 time transaction amount" "brand designation ratio" and so on is inserted in consideration in order to specify, supposing that customer life cycle is super long term, there are also times when it does the operation of converting to present worth.

The customer is acquired anew, there are times when it assumes that cost of 5 times that existing customer maintenance is necessary, in the background where this index is observed. When of profit largest conversion was thought, the existing customer from the method which such as especially fixed customer repeater customer seriously considers sale is more efficient, it is something which is devised from the thought, 1 1 person (1 1 corporation) customer share should be pursued, as the index which measures that.

It increases the sale profit from the existing customer, another commodity is sold, buying frequency is increased, you can think the method such that profit margin is enlarged via the reduction of customer cost, but among the management strategy which is based on customer life value, there is many a thing which temporary sale increase compared to seriously considers the long-term related - - namely future of the customer.

Customer life value was something which estimates the future economic value of the customer at the time of this meaning,activityin order the propulsion of CRM (maintenance of the relationship of the customer) and superior customer conversion (promotion and the like of repeat) with you said,to acquirecustomer share and customer royalty (it is something which becomes) index such as marketing.

"Customer maintenance is important", that saying, because cost catches even in customer maintenance activity, if easy it sells cheaply, incentive and excessive campaign can be when largest conversion of ? and LTV is obstructed in reducing profit amount. Then while customer acquisition cost and customer acquisition ratio estrangement ratio, looking at the balance of customer maintenance cost and customer maintenance factor carefully, controlling marketing activity is required.

 
 
 

 

 



 
 
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