Relationship Marketing and More

Relationship Marketing and More

2014/04/04

Differentiation on Customer (Customer Needs, Discounted LTV, Demographics)

Apart of the Differentiation on the Product, suppliers may also differentiate their marketing proposals based on the differences of their customers.

Peppers and Rogers (2004, pp. 113-160) propose a Differentiation on Customer based on:
·       Customer Needs (which are dynamic, often correlating with customer value, most fundamental human needs are psychological, no single best way to differentiate customers by their needs)
·       Customer Life Time Value (LTV) (Net Present Value of expected future financial  contributions from the customers - Most Valuable Customers: highest volumes, highest profits margins, most loyal, Most Growable Customers: highest growth potential, highest cross selling, longest time of cooperation, Below Zeros: Customers costing more to the company independently of its effort, Migrators: Been in the middle to be non profitable or to have growth potential)

·       All Others (Demographics, Geography, Size etc.)

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