CUSTOMER LIFETIME VALUE
OLX.com is aweb-based company that links potential buyers with potential sellersof goods such as electronics, motor vehicle’s, household productsand furniture. The company aim at ensuring that potential buyers meetas many people who sell the products they are looking for at a lowerrate. When offering this service they charge a small fee on only oncomplete transactions. The company is based in Nigeria but hasbranches in Kenya and Uganda, with each country having a separatewebsite and different management systems. The company attracts newcustomers through mass media advertisements such as websites,Television, and radio stations.
Benefits ofembracing the concept of (CLV)
It helps thecompanies identify different characteristics of customers. Suchtraits may enable the firm to provide services, which influence theirbehavior and subsequent change, their long-term values. It helps thecompany to discover the target market and valuable customers, aswell. Therefore, it helps them provide advertisement that targets thegroups (Kumar2008).
Customer Retention and Loyalty
The CLV canassist the company identify valued clients and the retention of suchprofitable customers. They do it through the creation of services,which target the high-valued and valuable customers (Kumar2008).
Kumar, V. (2008). Customerlifetime value: The path to profitibality.Boston: now Publishers, Inc.