Managing Customers Profitably

Author : Lynette Ryals
Publisher : John Wiley & Sons
Page : 384 pages
File Size : 41,5 Mb
Release : 2009-01-22
Category : Business & Economics
ISBN : 9780470742365

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Managing Customers Profitably by Lynette Ryals Pdf

This book is a response to a need in the market place in the fast-growing field of customer profitability analysis and the profitable management of customer relationships. It combines innovative approaches to calculating the value of customers, with the management strategies necessary to make and keep customers profitable. It includes easy-to-follow instructions on how to calculate customer profitability, including worked examples (non-technical) and discusses strategies and their applications for organizations to manage customers profitably. Based on cases and feedback from the KAM Club and other research, there will be many business-to-business as well as business-to-consumer examples. The book assumes some level of numeracy in its readership. The contents include: Assessing product costs, costs to serve and how these can be estimated, and how to deal with customer-specific overhead costs. It discusses the uses and limitations of the use of customer profitability analysis, and illustrates how to calculate customer lifetime value using two methods, one with actual numbers and one which estimates relative customer lifetime value. Provides an innovative approach to calculating the lifetime value of a customer by taking risk into account. Demonstrates how to recognise and value the relationship benefits of customers, such as word of mouth. Brings into discussion the idea that how customers are managed, links to their profitability. Describes how financial portfolio analysis and theory apply to marketing and how, their application to marketing relates to the optimisation of marketing spend.

Author : V. Kumar
Publisher : Prentice Hall Professional
Page : 317 pages
File Size : 55,6 Mb
Release : 2008-01-10
Category : Business & Economics
ISBN : 9780132716215

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Managing Customers for Profit by V. Kumar Pdf

“This is a milestone book in marketing. Most companies claim they are focused on customers, but even those who are, probably do not take a scientific approach to customer management. Professor V. Kumar is the acknowledged expert on the science of customer management. This important book raises all the key questions in managing customers, provides the analytical tools for optimization, and illustrates these tools with a number of company examples.” —Philip Kotler, S. C. Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University “Delivering lasting client value is at the heart of profitable businesses today. Managing Customers for Profit provides a compelling, empirically-tested approach to significantly enhance traditional customer relationship management initiatives. I highly recommend this book to all those interested in cultivating lasting profitable growth relationships with current and future clients.” —Tim Bohling, Vice President, Market Intelligence, IBM Americas “Executives are too often guided by backward-looking, short-term metrics. This book shows how a focus on Customer Lifetime Value (CLV) can change management toward long-term results by providing a fresh perspective on customer targeting, retention, and loyalty. Highly recommended—it shows you the way toward strategic customer thinking.” —Dave Aaker, Vice-Chairman, Prophet, Author of Brand Portfolio Strategy This book shows you how. Leading marketing expert V. Kumar shows how to use Customer Lifetime Value (CLV) to target customers with higher profit potential…manage and reward existing customers based on their profitability…and invest in high-profit customers to prevent attrition and ensure future profitability. Kumar introduces customer-centric approaches to allocating marketing resources for maximum effectiveness…pitching the right products to the right customers at the right time…determining when a customer is likely to leave, and whether to intervene…managing multichannel shopping… even calculating a customer’s referral value. Drawing on his extensive experience consulting with world-class marketing organizations, Kumar illuminates the challenges of transitioning from a product-centric to a customer-centric approach and presents proven solutions. Simply put, this book’s techniques offer marketing executives a complete framework for linking their investments to business value—and maximizing the lifetime value of every single customer. Foreword xiii Preface xv Acknowledgments xviii About the Author xix Chapter 1: Introduction 1 Chapter 2: Maximizing Profitability 11 Chapter 3: Customer Selection Metrics 29 Chapter 4: Managing Customer Profitability 59 Chapter 5: Maximizing Customer Profitability 75 Chapter 6: Managing Loyalty and Profitability Simultaneously 93 Chapter 7: Optimal Allocation of Resources across Marketing and Communication Strategies 113 Chapter 8: Pitching the Right Product to the Right Customer at the Right Time 127 Chapter 9: Preventing Attrition of Customers 143 Chapter 10: Managing Multichannel Shoppers 163 Chapter 11: Linking Investments in Branding to Customer Profitability 187 Chapter 12: Acquiring Profitable Customers 205 Chapter 13: Managing Customer Referral Behavior 223 Chapter 14: Organizational and Implementation Challenges 249 Chapter 15: The Future of Customer Management 267 Index 283

Author : Epstein, Marc J,Society of Management Accountants of Canada
Publisher : Mississauga, ON : CMA Canada
Page : 31 pages
File Size : 45,5 Mb
Release : 2000
Category : Consumer satisfaction
ISBN : 155302141X

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Customer Profitability Analysis by Epstein, Marc J,Society of Management Accountants of Canada Pdf

Author : Kerstin Helmes
Publisher : Diplomarbeiten Agentur
Page : 55 pages
File Size : 46,7 Mb
Release : 2011-06
Category : Business & Economics
ISBN : 9783863410599

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Relationship U-Turn: Approaches to Increase the Value of an Unprofitable Customer by Kerstin Helmes Pdf

Customer relationship management concentrates to a great extent on the profitable customers and how to enhance their profitability. Little insight has been given on how to treat the "wrong" customer. This literature research paper shows that customer profitability and overall firm profitability can be improved when dealing with unprofitable customers. The managerial approaches discussed focus on maintaining the customer relationship. For this reason, this paper differs from the general widespread strategy of termination or "firing" an invaluable customer. First, relationship marketing and "Relationship U-turn" are introduced in this paper. Second, customer value and methods of measuring customer value are discussed. The body of this paper concentrates on different approaches that try to turn unprofitable customer relationships into profitable ones. Some of the approaches focus on letting the customer take over more of the value chain activities such as self-service. Other approaches look more at the non-monetary value a customer can provide such as positive word-of-mouth. Examples from business-to-business (B2B) and business-to-consumer (B2C) markets are given for each approach and discussed in detail. The paper concludes with ideas for future research and a discussion. It emphasizes that companies need to realize that every customer is an asset that contributes to the value of a firm. However, customers differ in their needs and a company has to tailor its offering to meet these needs. Only when a company takes a more customer-centric view can it be successful, especially in mature markets.

Author : Malcolm McDonald,Beth Rogers,Diana Woodburn
Publisher : Elsevier
Page : 343 pages
File Size : 44,5 Mb
Release : 2000-07-04
Category : Business & Economics
ISBN : 9780080509723

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Key Customers by Malcolm McDonald,Beth Rogers,Diana Woodburn Pdf

Developing successful business-to-business relationships with more powerful customers in highly competitive markets requires processes and skills that go beyond traditional selling activity. The very best state-of-the-art strategies are set out clearly in this book in a practical way that can be implemented in all organizations. In particular 'Key Customers' looks at: * why has key account management become so critical to commercial success? * what are the key challenges and how do successful companies respond? * why is it vital to understand the role of key account management in strategic planning? * do you know what strategy your customer has for your company? By addressing these key questions McDonald, Rogers and Woodburn draw out the business issues that really matter - from developing a customer classification system that really works, analysing the needs of key accounts, developing the skills of key account managers to how systems for implementing key account plans can be developed. Throughout the book the emphasis is on clarifying and articulating the key concepts to give the reader the tools to apply in the marketplace. The 'real world' approach is based on best practice from leading companies globally and the latest research from the renowned Cranfield School of Management. 'Key Customers' comes from authors with an international reputation in this field and is an essential guide to customer management for marketing and sales executives, and all senior management with strategic responsibility. The clear and authoritative approach also makes it an outstanding text for the serious MBA and executive student.

Author : John J. Murphy,Jamie Burton,Robin Gleaves,Jan Kitshoff
Publisher : John Wiley & Sons
Page : 416 pages
File Size : 42,5 Mb
Release : 2005-11-18
Category : Business & Economics
ISBN : 9780470016343

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Converting Customer Value by John J. Murphy,Jamie Burton,Robin Gleaves,Jan Kitshoff Pdf

A company exists to make profit, and everything it does is a step towards that goal. Many firms are trying to get closer to their customers, but few realise how crucial this is to corporate value. Indeed, the long-term value of a company is perhaps best described as the sum of future profits from customers, discounted to a present value. Tackling two hot topics in business - CRM and corporate value - and based on a study undertaken by the Customer Management Leadership Group, John Murphy's new book links customer management directly to company profitability for the first time. By implementing its Customer Management Integration Framework, a company can see cash flows for each customer relationship, and use that information to effectively manage key customers for higher and more resilient levels of profitability.

Author : Oliver Baumgartner
Publisher : GRIN Verlag
Page : 23 pages
File Size : 52,9 Mb
Release : 2013-02-18
Category : Business & Economics
ISBN : 9783656373933

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How profitable is a bank customer - An analysis of customer segmentation and its profitability by Oliver Baumgartner Pdf

Seminar paper from the year 2012 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, University of Innsbruck, language: English, abstract: Haben Sie sich jemals gefragt wie profitabel einzelne Bankkunden sind? Diese Seminararbeit gibt ihnen einen Überblick über die gängigsten Methoden zur Profitabilitätsanalyse. Inhalt ist die Analyse von Profitabilitätsquellen, die richtige Einteilung von Kunden in unterschiedliche Segmente, unterschiedliche key ratios die bei der Analyse der Profitabilität helfen. Ebenfalls gibt es eine Einführung der wichtigsten Finanzkennzahlen in diesem Gebiet. Als letzten Teil, werden Sie lernen welche Möglichkeiten es gibt um Kunden profitabler zu machen bzw. unprofitable Kunden, möglichst leicht und ohne großes öffentliches Interesse, loszuwerden. This paper gives an overview of the most important points which have to be taken into consideration when analyzing the customer profitability. One will see different methods and key ratios which are used to get an overview of the customer management. Furthermore, one sees the importance of a good customer segmentation system. Additionally, there is also a focus on the problems which a bank has to face when dealing with unprofitable customers.

Author : Adam Curry,Jay Curry
Publisher : Simon and Schuster
Page : 364 pages
File Size : 44,6 Mb
Release : 2002-01-18
Category : Business & Economics
ISBN : 9780743203579

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The Customer Marketing Method by Adam Curry,Jay Curry Pdf

Today the hottest new area of marketing is Customer Relationship Management (CRM) -- the discipline of identifying, attracting, and retaining a company¹s most valuable customers. Drawing upon more than ten years of testing, tryout, and implementation in hundreds of companies, CRM expert Jay Curry, and his Internet-expert son, Adam Curry, have written a clear, step-by-step guide to profiting from this exploding movement, with strategies that are aimed at the small and medium-sized business owners who need them most. Jay Curry explains how CRM can help managers boost profits by implementing a customer-focused strategy. Using easy-to-understand graphics, he introduces the customer pyramid -- segmented as "Top," "Big," "Medium," and "Small" -- to help the reader visualize, analyze, and improve customer profitability. Success comes to those who follow this three-step Customer Marketing Strategy: (1) get new customers into your pyramid; (2) move customers higher into your pyramid; (3) keep the customers in the pyramid. Combining practical how-to directives with vital CRM reference information, the book includes a case study, "InterTech," that allows readers to see customer-focused strategy in action. The final third of this practical, easy-to-read book is devoted to the Internet. Here Adam Curry introduces the "Permission Pyramid" and the "e-Customer Marketing Pyramid" to explain the nature of "virtual customer relationships" and how to use them to create, keep, and upgrade customers. This section includes mini-cases and tips to help managers use the Internet to complement current marketing and sales activities and ends with guidelines to test out the new paradigms of e-commerce. Throughout The Customer Marketing Method, the emphasis is always on practical steps to "make it happen." It is essential and timely reading for owners of small and medium-sized businesses as well as managers of small business units within larger firms.

Author : Roger J. Best
Publisher : Prentice Hall
Page : 0 pages
File Size : 54,7 Mb
Release : 2005
Category : Customer loyalty
ISBN : 0131469568

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Market-based Management by Roger J. Best Pdf

"This groundbreaking book provides the tools and processes needed to actually apply market-driven strategy to today's business world. Roger Best's work has proven to be a refreshing alternative to the many conceptual and theoretical-centered marketing books because it is built around a performance orientation and the belief that real learning occurs only with the application of knowledge."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved

Author : Julie Meehan,Mike Simonetto,Larry Montan,Chris Goodin
Publisher : John Wiley & Sons
Page : 256 pages
File Size : 52,6 Mb
Release : 2011-06-28
Category : Business & Economics
ISBN : 9780470827055

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Pricing and Profitability Management by Julie Meehan,Mike Simonetto,Larry Montan,Chris Goodin Pdf

The practical guide to using pricing and profitability management to build a better business A comprehensive reference for any business professional looking to understand the capabilities and competencies required for effectively managing pricing and profitability, Pricing and Profitability Management explains how to determine the right approach, tools, and techniques for each of six key categories (pricing strategy, price execution, advanced analytics and optimization, organizational alignment and governance, pricing technology and data management, and tax and regulatory effectiveness). Exploring each category in detail, the book addresses how an integrated approach to pricing improvement can give a sustainable, competitive advantage to any organization. The ultimate "how to" manual for any executive or manager interested in price management, the book presents a holistic, comprehensive framework that shows how integrating these pricing categories into a cohesive program leads to impressive gains that cannot be achieved through a single-pronged approach. Presents a comprehensive framework for more effectively managing pricing and profitability Identities the six key categories of pricing and profitability management Shows you how to gain a competitive edge by managing pricing and profitability Taking a comprehensive view of pricing, companies can position themselves to tap a vast source of shareholder value—the ability to set and enforce profitable prices, not just once, but again and again in response to marketplace changes and evolving business needs—and this book will show you how.

Author : Brian Plowman
Publisher : Gower Publishing, Ltd.
Page : 268 pages
File Size : 48,5 Mb
Release : 2001
Category : Activity-based costing
ISBN : 0566081458

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Activity Based Management by Brian Plowman Pdf

This book explains the power of using ABM to increase the profitability of your business. It provides step-by-step guidance on basic principles, comparisons between traditional methods, definitions of processes, activities and cost-drivers as well as details of data collection techniques and implementation steps. Through the book's numerous detailed examples a logical picture builds up of how to obtain the benefits that ABM can deliver.

Author : V. Kumar
Publisher : Now Publishers Inc
Page : 111 pages
File Size : 52,8 Mb
Release : 2008
Category : Business & Economics
ISBN : 9781601981561

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Customer Lifetime Value by V. Kumar Pdf

Customer Lifetime Value - The Path to Profitability provides methods to measure CLV, strategies for developing customer-centric strategies, explains the implementation of CLV strategies in a B2B and B2C setting, and examines the challenges faced by an organization in implementing a CLV-based framework.

Author : V. Kumar,Richard Hammond,Herb Sorensen,Michael R. Solomon
Publisher : FT Press
Page : 1528 pages
File Size : 53,7 Mb
Release : 2012-09-05
Category : Business & Economics
ISBN : 9780133346107

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The Definitive Guide to Customer Relationship Management (Collection) by V. Kumar,Richard Hammond,Herb Sorensen,Michael R. Solomon Pdf

A brand new collection of powerful insights into building outstanding customer relationships… 4 pioneering books, now in a convenient e-format, at a great price! 4 remarkable eBooks help you develop rock-solid, high-value long-term customer relationships: levels of loyalty you thought were impossible Today, rock-solid long-term customer relationships are the holy grail of every business -- and they seem just as elusive. But such relationships are possible: great businesses are proving it every day, and reaping the rewards. In this extraordinary 4 eBook set, you'll learn how they do it -- and how you can, too, no matter what you sell or who your customers are. First, in Managing Customers for Profit: Strategies to Increase Profits and Build Loyalty, internationally respected marketing expert V. Kumar presents a complete framework for linking your investments to business value - and maximizing the lifetime value of every customer. Learn how to use Customer Lifetime Value (CLV) to target customers with higher profit potential…manage and reward existing customers based on their profitability…and invest in high-profit customers to prevent attrition and ensure future profitability. Kumar introduces customer-centric approaches to allocating marketing resources…pitching the right products to the right customers at the right time…determining when a customer is likely to leave, and whether to intervene…managing multichannel shopping… even calculating referral value. Next, in Smart Retail: Practical Winning Ideas and Strategies from the Most Successful Retailers in the World, Richard Hammond presents remarkable new case studies, ideas, strategies, and tactics from great retailers worldwide. Discover new ways to use data to drive profit and growth… do more with less… leverage technology to develop highly productive and innovative remote teams… create your ultimate retail experience! In Inside the Mind of the Shopper: The Science of Retailing, the legendary Herb Sorensen reveals what customers really do when they shop, ripping away myths and mistakes that lead retailers to miss huge opportunities. Sorensen identifies simple interventions that can have dramatic sales effects, shows why many common strategies don't work, and offers specific solutions for serving quick-trip shoppers, optimizing in-store migration patterns, improving manufacturer-retailer collaboration, even retailing to multicultural communities. Finally, in The Truth About What Customers Want, Michael R. Solomon demystifies today's consumers, revealing what they want, think, and feel. Then, based on his deep truths about consumer behavior, he presents 50 bite-size, easy-to-use techniques for finding and keeping highly profitable customers! From world-renowned experts in customer behavior and retail performance V. Kumar, Richard Hammond, Herb Sorensen, and Michael R. Solomon

Author : David Bejou,Timothy L. Keningham,Lerzan Aksoy
Publisher : Routledge
Page : 154 pages
File Size : 45,8 Mb
Release : 2013-04-03
Category : Business & Economics
ISBN : 9781136452956

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Customer Lifetime Value by David Bejou,Timothy L. Keningham,Lerzan Aksoy Pdf

Get the competitive edge by effectively managing customer lifetime value The customer lifetime value (CLV) concept is extensively changing the way today’s business is managed. A student or practitioner needs to understand CLV to best gain the competitive edge in business. Customer Lifetime Value: Reshaping the Way We Manage to Maximize Profits is a text that shows in detail how managers and researchers can best use CLV to a business’s advantage. This valuable resource explores various practical approaches to the measurement and management of customer value that focus on maximizing profitability and growth. Leading thinkers discuss how to leverage CLV in all aspects of business, including customer management, employee management, and firm valuation. Everyone needing to prepare a business for success in the future should read this book. Most books on the subject only cover separate components of CLV and are typically limited to targeting for direct response marketing. Customer Lifetime Value presents all components, cohesively putting them together into an understandable functioning whole. This source prepares forward-looking managers and researchers for the inevitable change and provides strategies to gain and sustain the competitive advantage. Topics in Customer Lifetime Value include: leveraging the customer database to maximize CLV using CLV in customer segmentation customer divestment using CLV in firm valuation setting up an organization designed to maximize CLV much more! Customer Lifetime Value: Reshaping the Way We Manage to Maximize Profits is essential reading for practitioners in the areas of customer satisfaction, loyalty, CRM, and direct response, as well as academics in the service marketing area.

Author : Brian Plowman
Publisher : Routledge
Page : 296 pages
File Size : 49,6 Mb
Release : 2017-09-29
Category : Business & Economics
ISBN : 9781351808521

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Activity Based Management by Brian Plowman Pdf

This title was first published in 2001: Product and particularly customer profitability are black holes in most managers’ understanding of their business. Identifying customer revenue is easy but identifying what they cost - so we can understand whether or not they are profitable - is difficult. In a world in which competition, regulation and the increasing use of the Internet put ever greater pressure on margins it is vitally important to understand both product- and customer-profitability. Activity Based Management (ABM) enables you to do this. This book explains the power of using ABM to increase the profitability of your business. It provides step-by-step guidance on basic principles, comparisons between traditional methods, definitions of processes, activities and cost-drivers as well as details of data collection techniques and implementation steps. Through the book’s numerous detailed examples a logical picture builds up of how to obtain the benefits that ABM can deliver. On its own ABM will change management decision-making: by showing how ABM also supports other profit improvement initiatives such as Business Process Reengineering, Shareholder Value Added and Customer Relationship Management, managers will learn how they can use the best possible toolkit to put their business firmly on the road to leaps in profitability.