Customer Life Cycle Costing Homework Help Assisting You to Achieve Excellent Result

Traditional product life cycle costing seeks to understand the products overall costs during the entire life cycle ranging from the launch phase to declining phase.But not all investment decisions require the purchase of physical assets.

For example, insurance or credit rating business acquires costs on paperwork, checking credit worthiness on the past histories and the opening of policies for new customers.Thus tracking clients and their needs over the entire life cycle is of prime importance for sustainable and profitable business in these cases.

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Classification of Customers:

  • Prospects-People who are not actual customers but can be converted to one in the future.
  • First Time Buyers-Have the lowest retention rates as they are not entirely aware of the product’s features.
  • Early-Repeat Buyers-Businesses have a chance of securing more profits from such buyers.
  • Core Customers-These customers are loyal to the brand and are of significant value to the firm.
  • Core Defectors-Core customers can switch to competing brands and become defectors.

Customer life-cycle costing assignment help will help you to understand all of the categories of customers and their business value in an interactive manner.

What is Customer Life Cycle Costing?

Helps to determine not only the Customer acquisition cost but also the value added services needed to be delivered to retain as many customers as possible.

Important factors to be considered while determining Customer Acquisition Cost:

  • The overall customer value-In a normal situation 90% of the revenue is generated by the Core Customers.
  • Profit Margin should be set at a reasonable rate to ensure no burden is passed on to the customers.

Customer Acquisition Cost is the most important factor a business should focus on.

Acquisition equity which is the potential monetary gain on acquisition should be accurately measured using tools like marketing campaigns to attract customers, computing the exact number of prospects who have converted into customers and finally calculating the revenue and gross profit henceforth.

Customer life-cycle costing homework help will provide you with case studies designed by experts to develop a practical viewpoint of the situation.

Need for Customer Life Cycle Costing

A customer’s shell life begins to deteriorate towards the declining phase of the life cycle.So better capturing of customer acquisition and retention costs are required as all clients may not be profitable. Thereby studying increased revenue from old customers and negating sunk costs from a declining one management will be able to retain more core customers adding to increased profits.

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