Create Value for Customers

CONCLUSION

Customer value affects customer satisfaction and loyalty. Loyal customers have higher profitability than disloyal customers. Thus, customer value is positively correlated with customer profitability.

One indicator of customer profitability is customer lifetime value (CLV), which is discounted net income that is earned as long as a consumer subscribes. The more loyal the customer, the longer the subscription period (customer lifetime), the more likely it is to upgrade buying and cross-buying, and the more they accept price increases so as to provide greater profits for the company. Consumer equity (customer equity) total CLV of all customers owned by the company.

In a situation of intense competition, customer value is an important source of competitive advantage. Therefore, the marketing strategy must be based on the creation of superior customer value.

Muhammad Fathul Mu'in                  202110160311474

Reh Tyas Prayogi                                        202110160311483

Muhammad Kafabik Abdullah                 202110160311434