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Essay heading: customer lifetime value analysis
 
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Issue: Business
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Date added: May 8, 2002
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No of pages / words: 3 / 748
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From Exhibit 2 of the case we see that the majority of purchases for this category are made in years 1 and 2. Tuscan may be able to increase per customer profits in this category by maintaining the same mailing frequency (8 catalogs per year) for the first 2 years and then decreasing the frequency (to say 4 per year) in subsequent years thereby decreasing the mailing costs while still maintaining relatively the same response rate from customers...
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Also we see from exhibit 2 that the number of multiple sales in a year is relatively high which seems to indicate that these may be loyal customers. A referral reward system may be used to incentivise these customers to try and rope in more customers. Customers Whose Initial Purchase is < $50: From the table in Q1 we see that even after a 5-year period, customers in this category still do not produce a profit for Tuscan...
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Customer Acquisition And Keeping Customers In Today’S Volatile Market   Measuring gender specific differences in Test Anxiety between contrast groups of first year and third year undergraduates   The Effectiveness of Art Therapy and Guided Imagery in Reducing the Stress of 3rd year and 4th year BS Psychology Students SY 2006-2007   USPS facility on its busiest mailing day of the year   2 Year College Vs 4 Year University   Met North Energy Corporation: 4 Year Net Profit Projections   two year v. four year education   Creative Writing: Year Long Period Of Solitary Confinement And What I   time of year   Reiss Three Year Marketing Plan   Estimate of the risk-free rate pf interest ("U.S. 10-year Treasury" bond rate   Costs of Bush's Eight Year Joyride   Using Contrasting Business Examples Describe The Main Benefits To Customers Of Internet Marketing   Year 2000 Fiction, Fantasy, And Fact   Year 2000: Fiction, Fantasy, And Fact  
 
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