The Lifetime Value (LTV) models are a powerful tool to help businesses demonstrate the future value they can generate from marketing activities. If your professor has given you this assignment and you don’t know anything and are confused about what to write and what not to, then this article is going to help you big times.
According to the professionals proficient in providing help with relationship management assignments, lifetime value is the perfect approach to evaluate investment based on long-term returns from marketing activities rather than the short-term success of a single sale.
There are a lot many benefits of using lifetime value models, such as they are strong. Lifetime value is a technique that you can not use as much as you might expect. It is mainly a “big company thing,” more often used in sectors like financial services, retail, or where direct marketing has been practiced.
Let’s understand this topic in-depth, learn how to write about it in your relationship management assignment.
Migration into Premier Status Levels
This is the scenario in which loyalty benefits are used as leverage for extending the customer relationship. They influenced customers by offering increased benefits and other incentives for their ease. Aside from loyalty programs, other examples include various tiered special “member discounts” provided to shopping club members willing to pay for increased membership levels or ratcheting up a level when using an affinity credit card.
Pumping the Customer’s Relationship Network
Providing incentives to a customer to encourage recommending your company’s products or services to his/her friends, relatives, and other people. The company provides them some offers, discounts, vouchers, or coupons as a complimentary gift.
The service is a lottery for the customers. Using lifetime value assigns the profile to the level of effort that is applied to customer touch-point activities. For example, best customers have many benefits for end times because of the behavior, while undesirable customers must have to wait in the queue for a long time.
Leveling-up In Profile
In this, you need to identify “good” customers who have the potential to be turned into “great” customers for a lifetime. They are being surprised by providing incentives for the behaviors that would ratchet the customer into a more profitable segment from a lifetime value perspective.
Proactive Retention Management
Identify scenarios in which providing incentives for continuous re-engagement of good customers as a way of elongating the relationship, as well as reducing the benefits provided to the undesirable customer to encourage their attrition.
This is the ultimate topic that management students can write an assignment on. You need to understand the behavior of influencing through this method. Hope these points will help with relationship management assignments when created on this topic.
Summary: This article helps you know the inside and out of the LVM behavior for your relationship management assignment.