Discussion Board Reply BUSI 332

According to Phillips, the brick and mortar store is the heart and soul of the company.  To visit an EVO store is an experience in itself.  EVO prides itself with the total customer service satisfaction experience.  Over the years they have worked to incorporate this experience on their website as well.  By showing a close-knit, family team of employees is one reason many customers return time and time again, because they feel like family and well taken care of with their purchases.  Evo offers value to their customer from their prices, selection and their high level of customer service.

Why is the 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.

One big advantage they have is a tool that will allow the consumer to match up needed items for what they are purchasing.  CLV is effective for long-term business success because knowing what your customers are looking for and what their buying history is can help you to be proactive with your marketing and merchandise.  CLV is important for businesses because it will not only draw the customers that your business merchandise is geared toward but it will also market to keep those customers for years to come.  It is not always about the big one-time purchase, the customer that makes purchases over time is even more important.  A complete understanding of the value consumers seek is needed to effectively develop and implement a strategy ( Babin, B. J., & Harris, E. G.,2016 ).  Knowing what your customers what and their purchasing history can help a business market specific products to that customer. 

What is 1 significant competitive advantage of Evo?

One of the things EVO wants their customer to feel is like family.  They want to project the family closeness to their customer which is portrayed on their website as well as the environment if you visit the store in person.  Knowing the likes and dislikes of your family make it easier to purchase things for them.   CLV has an important role in performance measurement or customer assessment, the determination of target, customer retention management and segmentation (Babin, B. J., & Harris, E. G. 2016)

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?

If a business sees a decrease in interactions and sales, they can look at the CLV and find new marketing strategies to bring those customers back to the business.  One of the keys to increasing the effectiveness of retailer promotions is tailoring the retailer’s marketing efforts to individual customers (Von Mutius, B., & Huchzermeier, A.,2021).  Having a vision and plan to retain and get new customers is ideal for any business to be successful.  Proverbs 29:18 tells us, Where there is no vision, the people perish.  In order to be successful, have a plan and vision and give it to God.

References

Babin, B. J., & Harris, E. G. (2016). Cb: Consumer behavior. Cengage Learning.

Sudirman, I., & Sidin, I. (2018). the comparison of development model of customer lifetime value (clv) for private and public hospitals in makassar, indonesia. Academy of Strategic Management Journal, 17(4), 1-8.

Von Mutius, B., & Huchzermeier, A. (2021). Customized targeting strategies for category coupons to maximize CLV and minimize cost. Journal of Retailing, 97(4), 764-779.