Owning a wine shop in Paris: CLV + CRV. The Customer Lifetime Value: CLV The Customer Referral Value: CRV.

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Presentation transcript:

Owning a wine shop in Paris: CLV + CRV

The Customer Lifetime Value: CLV The Customer Referral Value: CRV

CUSTOMER 1 Radu: Champion + Purchases + WOM

CUSTOMER 2 Sara: Affluent + Purchases - WOM

- Purchases + WOM CUSTOMER 3 Diana: Advocate

CUSTOMER 4 Marig: Miser - Purchases - WOM

AdvocatesGood CRL Needs to be maintained Bad CLV Needs to be improved Up-selling, cross-selling, reinforcing buying Offering discounts for related product, Contracts

AffluentsGood CLV Needs to be maintained Bad CRV Needs to be improved Encouraging them to make more references Offering discounts if they bring some friends

MisersBad RCL Needs to be improved Encouraging them to make more references Offering discounts if they bring some friends Bad CLV Needs to be improved Up-selling, cross-selling, reinforcing buying Offering discounts for related product, Contracts

Let’s be critical Attracting new customer – 50$/customer Discount for a contract – 200$/year Discount for a friend – 10$/friend Average price of a bottle – 15$ Type of a customer CLV/yearCRV/yearIn total Champion50 bottles*15$- 50$=700$ 10cust- 2cust*12bottles=9 6b*15$+8*50= $ Affluent50 bottles*15$- 50$=700$ 1cust*15$+50$=7 5$ 775$ Advocate12 bottles*15$- 50$=130$ 12cust- 2cust*12bottles*1 5$= *50$= $ Misers12 bottles*15$- 50$=130$ 1cust*15$+50$=1 95$ 325$ Overall benefits6070$

Type of a customer BeforeCalculationsAfter Champion2540$+02540$ Affluent700$8cust*180$- 8*10$+8*50$=104 0$ 1815$ Advocate2300$50*15$- 200$=500$ 2800$ Misers195$ *Affluent50*15$-200=500$695$ 130$ *Advocate10cust*12b*15$= cust*10$=700$+ 10*50=1200$ 1330$ Overall benefits6070$7850$/8485$ Let’s be critical again Attracting new customer – 50$/customer Discount for a contract – 200$/year Discount for a friend – 10$/friend Average price of a bottle – 15$

Relationship After sales 5 TIPS FOR SUCCESSFUL CRV Tip #1: Timing

WIN  Bonuses, incentives WIN  New clients Tip # 2 Twice the benefit

Tip # 3 Treasures

 Asking for a referral  A long process  Get information from new clients Tip # 4 Tracking

Tip # 5 Thanks

Conclusions 68%33%

Conclusions COMPETITION ATTACHMENT HARD TO TRACK REFER AGAIN?