To manage and sustain profitability, marketers need to come up with the right marketing strategies, backed by the right marketing metrics. This book explains how to understand and use the single most important metric: the customer lifetime value metric. Customer Lifetime Value (CLV) is defined as the net present value of future profits from a customer. The beauty of the metric lies in the fact that it is forward-looking, unlike other traditional measures that are based on the past contributions to profit. Hence, it enables marketers to adopt the right marketing activities today to increase future profitability. This book takes an in-depth look at how marketing strategies based on this powerful metric can help manage customer relationship and profitability simultaneously. This book offers 10 strategies that can be effectively used to manage customers profitably.These strategies are aimed at selecting the right customers; managing them profitably and retaining them through optimal allocation of resources; pitching the right product to the right customer at the right time; encouraging multi-channel shopping; preventing churn; improving brand perception and brand value; encouraging word-of-mouth behavior and managing profitable customers. By implementing these strategies, companies can acquire prospective customers with a higher profit potential power companies ahead of the competition.

• Preface xiii 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