Essays on CLV

Customer Life-time Value (CLV) can be defined as the present value of profits that are expected in the future as the result of customer purchases. It considers the cost of providing the service/selling a product, future purchases and the profit margin associated with these expected purchases. Calculating CLV helps companies to evaluate acquisitions of new customers, to assess the most appropriate level of investment in attracting new customers and helps to understand which customers they should invest into. The simplest method to calculate CLV can be expressed with a formula CLV = Annual Customer Revenue * Company Profit Margin * Number of Loyal Years ( ...

What is the role of offline vs. online ads in generating new checking customers? Is the mix right? How about the weight of where the budget is allocated? The role of offline advertising is to build brand awareness and improve consideration among potential customers to open new checking accounts (Gupta, 2012). Changing the name of the bank to BBVA Compass resulted into drop in brand awareness to 48% in 2009. Using offline advertisement would help the company to raise its brand awareness to 53%. The bank planned to achieve this growth through sponsoring WNBA, NBA, and ESPN. Through ...

As mentioned in the case, HubSpot believes that the rules of marketing have changed. However, I would be of the opinion that the rules of marketing have “evolved”. With the emergence of technology and the increasing presence of internet or Web 2.0, there is strong increased competition among different channels of media to attract the attention of consumers as a platform to get information. According to a recent research conducted by Forrester Research in 2012, the average consumer of internet in the U.S. spends as much time on the internet as he or she watches TV offline. HubSpot noticed this change ...