Marketing Management, 16th Edition

Building Customer Lifetime Value

Customer profitability analysis and the customer acquisition funnel help marketers decide how to manage groups of customers who vary in loyalty, profitability, risk, and other factors.59 Winning companies improve that value by excelling at strategies like the following:

• Improving customer service. Selecting and training employees to be knowledgeable and friendly increases the likelihood that customers’ shopping questions will be answered satisfactorily. Whole Foods woos customers with a commitment to provide fresh, high-quality food and deliver a superior service experience.

• Engaging customers. The more engaged with the company, the more likely a customer is to stick around. A large percentage of new Honda purchases ...