24.11.2010 7295

Lifetime profitable

Whether this crisis, or the next one - someday shoppers will be golden for store owners, both in terms of understanding their value and in terms of their profitability. And then they will definitely need the fundamental work of Columbia Business School professors at Columbia University Sunil Gupta and Donald R. Lehmann "Gold Buyers: Are Customers Worth the Money You Spend on Them".

The proposed publication will be a detailed guide for anyone interested in what the cost of the buyer and how to calculate it; how much it costs not only to attract, but also to retain a client (usually shoe companies don’t even think about it); as related in terms of profit, customer retention and company market share.

Of course, company owners understand the value of customers, at least theoretically. However, often they only operate with the number of customers in the customer base and brand recognition, forgetting that with an increase in the number of customers, purely arithmetic the company's revenue per one customer decreases. Sunil Gupta and Donald R. Lehmann analyze ways in which this contradiction can be avoided.

Book authors introduce concept buyer's lifetime profitability. This term refers to the total value of all current and future income received from the buyer. To calculate it, you need to know the pattern of generating income from customers and their coefficient of care over time.

In addition, it explains what the economic, functional and psychological value of the buyer.

Authors write hard enough; to get through the given formulas and calculations, you have to sweat, but believe me, it’s worth it if you want to understand what your company is worth now and what it can count on in the future.

Sunil Gupta, Donald R. Lehmann Gold Buyers: Are customers worth the money you spend on them? Managing Customers as Investments: The Strategic Value of Customers in the Long Run Peter, 2007

Whether this crisis, or the next one - someday buyers will become golden for shop owners, both in terms of understanding their value, and in terms of their ...
5
1
Please rate the article

Materials on the topic

Sales through marketplaces. Growth points and pitfalls

Over the past few years, marketplaces have been actively growing, taking away share from offline retail. And shoe brands are eager to sell their products through these online platforms, hoping to earn a lot more and scale their business. Marketplaces are really...
27.05.2024 2507

Omnichannel on the shelves. What is it, which companies are it suitable for and should they follow this trend?

The technologies we use in life and business are developing rapidly: in the last 10 years alone, many new sales channels and communication with audiences have appeared. This progress influences consumer behavior in ways that cannot be...
18.03.2024 1935

Technology Selling Issues

There is nothing worse than meeting the buyer with the words “Hello, can I help you with something?”, Because the seller works in the store just to help. Criticizing this established pattern of communication with the buyer, Andrei Chirkarev, a business coach ...
26.08.2013 208553

Does an online store need omnichannel?

According to experts, the assortment of offline and online stores should be different, because their target audience is different. What is the difference between the target audiences of a regular retail store and its online clone? Is omnichannel necessary...
10.10.2023 3872

I doubt and object: how to find an approach to difficult clients?

How good and serene would be the work of a salesperson if the customers were calm, cheerful, always knew exactly what they wanted, and bought, bought, bought! It is a pity that this is possible only in dreams. Therefore, we will not dream, but we will ...
10.05.2023 7574
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning