Customer Acquisition and Customer Retention in a Monopolistically Competitive Industry
We study the structure of optimal customer acquisition and customer retention strategies as a differential game over an inﬁnite horizon in an industry with a large number of non-atomic ﬁrms. The optimal retention effort is constant over time and the optimal acquisition effort is proportional to the size of potential customer base. Greater customer proﬁtability leads to higher per- capita acquisition and retention efforts, larger size of ﬁrms, and lower churn rate. A greater discount rate leads to lower per-capita acquisition and retention efforts, smaller ﬁrm size, and a greater churn rate. Tougher competition lowers the ﬁrms’ acquisition and retention expenditures and it does not affect per-capita values. Both the churn rate and the share of acquisition expenditures in the total marketing budget decrease as ﬁrms grow over time. We revisit the concepts of the customer lifetime value (CLV) and the value of the ﬁrm in the dynamic equilibrium of an industry with a large number of players and demonstrate the equivalence between maximization of the value of the ﬁrm and maximization of a ﬁrm’s individual CLV.
This article concerns the problem of predicting the size of company's customer base in case of solving the task of managing its clients. The author purposes a new approach to segment-oriented predicting the size of clients based on adopting the Staroverov's employees moving model. Besides the article includes the limitations of using this model and its modification for each type of relations of the client and the company.
The paper evaluates the usefulness of customer lifetime value (CLV) as a metric for marketing budget allocation by developing a framework that enables managers to maintain customer relationships proactively through different elements of marketing mix, in order to enhance brand equity and maximize CLV. The analysis is based on data from a hardware components PC B2B company and suggests that there is a potential for achieving a variety of long term goals when managers design resource allocation rules that maximize CLV. Marketing managers can use results of this study to guide their distribution decision so the effectively and efficiently reduce the costs associated with customer acquisition, enhance customer retention and increase customer profitability with marketing related activities.
портовый менеджмент, показатели деятельности, анализ эффективности, система учета, распределение издержек, методы анализа деятельности портовой системы
At present many industries reveal tendency for setting up of vertically integrated companies (VIC) the structure of which unites all technological processes. This tendency proved its efficiency in oil industry where coordination of all successive stages of technological process, namely, oil prospecting and production -oil transportation - oil processing - oil chemistry - oil products and oil chemicals marketing, is necessary. The article considers specific features of introduction of "personnel management" module at enterprises of oil and gas industry.
vertically integrated companies; personnel management