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KEEPING EXISTING CUSTOMER

 Grading customer from satisfied to very dissatisfied shall help the


organization in always improving its customer satisfaction level and
scores. As satisfaction level of each improves so shall the customer
retention with the organization.

Attempts to ſownƀ the lion share of customer spending and/or ſshare


of mindƀ in a particular product category
Building brand equity, maintaining vigilant customer contact, keeping
current with the market trends is critical
5% points increase in customer retention=20-125% increase in
profit
 CUSTOMER LIFE TIME VALUE

 By identifying life stage and life event trigger the points by customer
,marketers can maximize share of purchase potential.
Refers to the net present value of the potential revenue stream for
any particular customer over a # of years
Starts with current purchase activity then extrapolates to include
potential additions from cross-selling, upgrades, total ownership, etc.
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