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1、Creating Long-Term Loyalty RelationshipsChapter 5Maximizing Customer Lifetime ValueCustomer lifetime value(CLV)The net present value of the stream of future profits expected over the customers lifetime purchasesMaximizing Customer Lifetime ValueMaximizing Customer Lifetime ValueMaximizing Customer L
2、ifetime ValueReducing defection/customer churn Define and measure retention rate Distinguish/identify customer attrition causes Compare lost CLV to reducing defection rateMaximizing Customer Lifetime ValueRetention dynamics/marketing funnelMaximizing Customer Lifetime ValueManaging the customer base
3、Reduce customer defectionIncrease customer longevityShare of wallet&cross/upsellingTerminate low-profit customersFocus on high-profit customersBuilding loyaltyInteract closely with customersDevelop loyalty programsCreate institutional tiesBrand communitiesA specialized community of consumers and emp
4、loyees whose identification and activities focus around the brandTable 5.5Value Creation PracticesSocial networkingWelcoming,empathizing,governingImpression managementEvangelizing,justifyingCommunity engagementStaking,milestoning,badging,documentingBrand useGrooming,customizing,commoditizingCultivat
5、ing Customer RelationshipsCustomer relationship management(CRM)The process of carefully managing detailed information about individual customers and all customer“touch points”to maximize loyaltyCustomer value management(CVM)CRMPersonalizing/permission marketingCustomer empowermentCustomer reviews/recommendationsCustomer complaints