Powered by Harvard Business Publishing materials, this module on customer management sheds light on how companies should evaluate and manage their customers to grow profitably. Customer management allows marketing managers to inform investment decisions by drilling down into each customer’s profitability or customer lifetime value (CLV). Historically, marketing managers have focused on providing value to customers while mainly ignoring the value they could get from customers. Realizing that customer lifetime value is a more critical metric than simply increasing sales or market share, many companies are beginning to understand how the viability of their businesses is tightly linked to acquiring, retaining, and developing the right customers.
The module includes three Interactive Illustrations: Margin Multiple, Customer Lifetime Value Calculator, and Expected Customer Lifetime.
Learning Objectives
- Understand the two sides of customer value.
- Define and calculate customer lifetime value.
- Understand the need to combine qualitative and strategic considerations concerning customer value with more quantitative measures associated with CLV.
- Learn about methods to acquire, retain, and develop the right customers.
- Apply CLV to estimate the value of all of a firm’s customers-a value known as “customer equity.”
Delivery Method
Online
Credential
Certificate of Compeltion
Number of Credits
1
Duration
The module will be available for 120 days.
