MKT 702 Lecture 3: MKT 702 week 3

• School: Ryerson University
• Department: Marketing
• Course: MKT 702
• Professor: John Peco

Document Summary

Customer relationships: creating loyal customers is at the heart of every business, businesses succeed by getting, keeping and growing customers. Measure satisfaction and monitor customer behaviour: periodic surveys, customer loss rate, mystery shoppers, monitor competitive performance. Customer satisfaction: customer satisfaction is both a goal and a marketing tool, caution: word of mouth in the digital. A profitable customer is a person, household, or company that over time yields a revenue stream g(cid:396)eate(cid:396) tha(cid:374) the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:272)ost st(cid:396)eam for attracting, selling, and serving that customer: not all customers are equally profitable. Customer lifetime value (clv) describes the net present value of the stream of future profits expected o(cid:448)e(cid:396) the (cid:272)usto(cid:373)e(cid:396)"s lifeti(cid:373)e pu(cid:396)(cid:272)hases. Need 4 pieces of information: cost of a(cid:272)(cid:395)uisitio(cid:374) (cid:894)e. g. (cid:1004)(cid:1004)(cid:895, g(cid:396)oss ma(cid:396)gi(cid:374) o(cid:374) a(cid:374)(cid:374)ual re(cid:448)e(cid:374)ue (cid:894)e. g. (cid:1008)(cid:1004)% * (cid:1004)(cid:1004) = (cid:1004)(cid:1004)(cid:895, a(cid:374)(cid:374)ual uppo(cid:396)t costs (cid:894)e. g. (cid:1009)(cid:895, le(cid:374)gth of the relationship (e. g. 3 years)