The paper "Customer Lifetime Value Research in Marketing" is a great example of a Marketing Assignment. A customer is one of the important factors in any business because they determine whether the company will thrive or not. Customers are responsible for the existence of a business as they are the end-users of the product or service. According to Payne, and Frow, (2005) Customer relation, therefore, involves the coexistence between the customer and the business or the company, such that there is a strong relationship which will result to maintain the customer, attracting more customers and building along with lasting relationship for the purpose of generating more profits. We are going to highlight on various aspects of customer relations and the aim is focusing on understanding what customer relations entails, this is through an insight of literature review.
Also, customer lifetime value is important for business decision making, where key performance indicators on customer lifetime value are used in evaluating customer relations. All these are aimed towards how a company will use CLV, customer lifecycle and key performance indicators in ensuring that they add value to customer relationship management. The objective of this assignment is to analyze customer relationship management by understanding the strategic issues associated with initiatives to propel customer relations.
Also, customer needs should be analyzed by integrating technology, information, stakeholders, business and all the processes taking place in the business. Another aim is to give an insight into ethical and private issues in managing customer data. Literature Review Customer relationship management has been used widely by different organizations and businesses. It is the process of using information relating to customers to develop a strategy on how to satisfy customers and retain them.
The evolution of CRM has been surrounded by objectives that focus on the goals of the company and analyze of customer’ s character so as to design an appropriate strategy where the two relate. The evolution of CRM has been associated with all the processes in business that aims at creating a strong relationship between the business and customer (Venkatesan, and Kumar, 2004). For example, when marketing a certain product, the aim is to attract customers, in that process of marketing, the aim of retaining the customer is also initiated whereby after the customer purchase the product, the business will focus on retaining the customer.
The idea of adopting a Customer relationship tool is due to the need to identify customer groups, in this case, there are profitable relations and there are those unprofitable. Therefore it is important to focus on profitable relations while trying to maintain the reputation of the company. According to Reinartz et al, (2004), Company’ s profitability is highly affected by customer retention such that it is more important to retain a customer through a worthwhile relationship than to start the process of looking and attracting new customers.
Customer relations contribute to the reason as to why companies thrive in a competitive environment. From way back, organizations have placed focus on ensuring that customers do not complain about their products and services and therefore they have invested in customer relationship management. The performance of a company is determined by customer commitment and loyalty such that every business has to invest in building a strong relationship between customers to avoid loss as a result of customers who are not loyal.
There are several factors considered when building the relationship and they all fall under appropriate strategies in customer relationship management.
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