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Essay

Loyalty Programs in Retail

Essay specific features

 

Issue:

Business

 

Written by:

Nancy K

 

Date added:

July 20, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

12 / 3303

 

Was viewed:

7255 times

 

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Essay content:

From merely increasing footfalls, and then focusing on top-line growth, the focus of firms has now changed to customer lifetime value. Customer lifetime value (CLV) is the value the customer generates over the whole period of association with the firm. It considers all the future cash flows of that customer arising from him consuming in the future...
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It considers all the future cash flows of that customer arising from him consuming in the future. CRM should lead to increased CLV. When one thinks of maximizing CLV, one has to take a long term perspective and hence focus on customer retention rather than just making a sale. This, coupled with the concept of the Pareto principle ? that 80% of a company's sales come from 20% of their customers ? has made firms have realized that retaining that 20% is integral to their increased profitability...
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