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Week 6 Customer Lifetime Value

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Q Individual Assignment 6 Assignment VI.docx Case study Customer Lifetime Value (CLV) Up to now we have focused much on the marketing and logistics of building a customer base, and selling a product or service to it and thus increasing customer value through marketing, customer service and good quality products and brands. By reading the article in assignment 6 we can see how effective a strategy it is to project the profit each customer will generate over their lifetime with the company. Once this profit figure is established, CLV makes the loss of one customer much more real in monetary terms. Assignment: Apply the concepts in the article to the same company you have been using throughout the course. It is not necessary to calculate actual figures. The objective of this assignment is – for you in the position of CEO – to realize that each customer has a projected future value to the company. The value can be diminished by many factors which we have discussed during the course. But the value can also be enhanced, hence adding value to the company and affecting shareholder value, which is a major responsibility for the CEO in publicly traded companies – and an expectation, by Wall Street. Format: APA, Assignment VI Customer Lifetime Value Font: Times New Roman Size 12, there is no page length. Cover page and reference page are required. It is expected that papers are written in the third person, contain the proper terminology as used in the text and in class, are spelling and grammatically correct – with a high level of clarity and are referenced appropriately. Refrain from pasting in excerpts from the textbook as this will diminish your grade and could be considered plagiarism – resulting in a failing grade.

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The following paper will be based on the ways in which Wal-Mart Inc. will be able to understand the value of each and every customer and calculate the losses which can occur when there is a loss of even one customer for the organization. Customer Lifetime Value (CLV) will be analyzed and estimated so that the effects of the loss of one customer to Wal-Mart Inc. can be evaluated. The CLV will also be analyzed in order to understand the overall impact which the loss of one customer will make to Wal-Mart Inc. in terms of financial losses as well as loss of customer loyalty and goodwill of the organization (Best, 2013).