Why is customer lifetime value an effective focus

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Reference no: EM131936195

Question: Topic: Consumer Values and Value of the Customer - A Look at E-Businesss at Evo

The heart of consumer behavior is not only knowing what consumers want, but why they want it. Understanding the consumer value framework (CVF) for both individuals and consumer segments can help both businesses and marketers to better develop and market products that meet consumer demands. Evo is a sports equipment company that understands the role and importance of CVF well. After reading Chapters 1 and 2 from Babin & Harris, watch the E-Business at Evo video and respond to the following questions:

1. According to Phillips, what is the heart and soul of Evo? How does Evo offer value to its customers?

2. What is 1 significant competitive advantage of Evo?

3. Why is customer lifetime value (CLV) an effective focus for long-term business success? Provide an example of how Evo could apply customer lifetime value as a marketing strategy.

4. Though the passage does not directly speak about ROI, Proverbs 27:23-27 instructs us to pay attention to the resources we have and to plan wisely. How does using CLV enable business leaders and marketers to "know the condition of your flocks" and "give careful attention to your herds"?

Reference no: EM131936195

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