Net Promoter Score or traditional LTV models using predictive analysis are one of the ways to look at LTV.
As a practitioner I still prefer the traditional LTV model for customer acquisition to estimate retention (“LTV”) of a customer.
Roughly defined, LTV is the projected revenue that a customer will generate during their lifetime to determine true value and worth.
Below is an interesting example in an Infographic.
Managing Customer Experience is about knowing who your customers are and the value they represent to you.
What does it mean to be “customer-centric” as an Airline or Business? Assuming that you start with a quality product and service, being customer-centric means understanding the customer’s point of view and respecting the customer’s interest. You fix problems, handle complaints, and remember individual customer preferences. Customer Loyalty programmes assist in this objective.
But customer centricity isn’t merely a matter of adding up these different components of quality, service, insight and responsiveness. You can introduce all these ideas into your business model, but if you don’t grapple with your company’s most basic strategic objective, then sooner or later your efforts will fail.
In the past I’ve found it helpful to explain the contrast between customer centricity and product centricity by understanding three criteria that actually help organisations to differentiate themselves from the competition. If you think about it, for a business to be competitively successful, it must meet three criteria:
- It must be able to satisfy a customer’s need
- It must identify a customer who wants that need satisfied
- Organisations must communicate in the media of preference and choice.
In this world of immediacy that we live in is the mobile wallet the way to go for customer loyalty in the future? What are your views