Define the concept of customer lifetime value, and describe five ...

[Marty]

Define the concept of customer lifetime value, and describe five ways to enhance lifetime value.

Question 2

Some companies have responded to environmental concerns by introducing environmentally oriented products and undertaking marcom programs to promote them. These actions are referred to as ____.
 a. green marketing
  b. environmental initiatives
  c. cause marketing
  d. clean-world initiatives
  e. environmental ethics

[dudman123]

Answer to Question 1

Customer lifetime value is the net present value (NPV) of the profit that a company stands to realize on the average new customer during a given number of years. There are five ways to augment lifetime value:
1 . Increased the retention rate. The more customers a firm has and the longer they are retained, the greater the lifetime value.
2 . Increase the referral rate. Positive relations created with existing customers can influence others to become customers through the positive word of mouth expressed by a company's satisfied users.
3 . Enhance the average purchase volume per customer. Existing customers can be encouraged to purchase more of a brand by augmenting their brand loyalty.
4 . Cut direct costs. By altering the channel of distribution via direct marketing efforts, a firm may be able to cut costs and hence increase profit margins.
5 . Reducing marketing communication costs. Effective database marketing can lead to meaningful reductions in marcom expenses because direct marketing often is more productive than mass media advertising.

Answer to Question 2

a

[Marty]

Thanks for the timely response, appreciate it

[hramirez205]

Great answer, keep it coming