barcode printer in vb.net T h e C u s t o m e r L o ya lt y S o l u t i o n in Software

Generator ANSI/AIM Code 39 in Software T h e C u s t o m e r L o ya lt y S o l u t i o n

T h e C u s t o m e r L o ya lt y S o l u t i o n
Scan Code 3 Of 9 In None
Using Barcode Control SDK for Software Control to generate, create, read, scan barcode image in Software applications.
Make Code39 In None
Using Barcode maker for Software Control to generate, create Code 39 Full ASCII image in Software applications.
What Table 5-2 tells us is that the average newly acquired customer of this company is worth $18 in the third year. The details of this chart are explained in 4, Computing Lifetime Value. For now, let s just concentrate on what it tells us. The retention rate of customers tends to go up after the rst year, as does the average order size. Of the 200,000 customers who might make a purchase, the average person might buy three times a year. Forty percent of these purchasers would still be customers in Year 2, making four larger purchases per year. Fifty percent of those would last to a third year, buying even more. The costs of servicing customers typically tend to go down each year, as shown here. The discount rate is needed to convert future pro ts into net present value of pro t so that these pro ts can be added together to get the cumulative pro t. The lifetime value is determined by dividing the cumulative NPV of pro t by the original 200,000 customers to determine the value of a newly acquired customer. In this case, the newly acquired customers are worth $18 in the third year. This is the value to a company selling CDs that has already acquired these customers. So to the dot com the names are worth $18 to their owner. What would they be worth to a potential buyer Let us assume that the potential buyer is selling a product of similar value, so that the buyer s customer lifetime value once it has acquired the customers would be identical $18. What is the value of these names to a new company that wants to sell products to these customers The value of a name has to be related to the cost of acquiring the customer by using various media (see Table 5-3). An outside buyer renting the name from the original company has to consider the costs of acquiring these customers on its own. There are two methods the buyer could use: direct mail or email. Let s consider both possibilities; the costs are given in Table 5-4. Table 5-3 Sales by Medium
Decode ANSI/AIM Code 39 In None
Using Barcode reader for Software Control to read, scan read, scan image in Software applications.
Code39 Generator In Visual C#
Using Barcode creation for Visual Studio .NET Control to generate, create Code-39 image in Visual Studio .NET applications.
Budget TV Radio Print Direct mail $400,000 $400,000 $400,000 $400,000 Reached 74,074,074 71,428,571 25,000,000 1,086,957 CPM $5.40 $5.60 $16.00 $368.00 Sales rate 0.04% 0.03% 0.07% 1.80% Sales 29,630 21,429 17,500 19,565 Cost per sale $13.50 $18.67 $22.86 $20.44
Generating Code 3/9 In Visual Studio .NET
Using Barcode printer for ASP.NET Control to generate, create Code 3 of 9 image in ASP.NET applications.
Generating USS Code 39 In Visual Studio .NET
Using Barcode creator for .NET framework Control to generate, create Code 3/9 image in .NET framework applications.
T h e Va l u e o f a N a m e
Making Code 39 Full ASCII In Visual Basic .NET
Using Barcode drawer for VS .NET Control to generate, create Code39 image in Visual Studio .NET applications.
European Article Number 13 Creator In None
Using Barcode generator for Software Control to generate, create EAN-13 image in Software applications.
Table 5-4 Two Methods of Contact
Code39 Generator In None
Using Barcode drawer for Software Control to generate, create Code39 image in Software applications.
Code 128 Drawer In None
Using Barcode encoder for Software Control to generate, create Code 128 Code Set B image in Software applications.
Direct mail Names Cost of message Sending cost Response rate Responses Customer lifetime value Value of customers acquired Value after sending cost Prospect lifetime value Offering price 200,000 $0.37 $74,000 1.8% 3,600 $18.05 $64,977 ($9,023) ($0.05) 0 Email 200,000 $0.04 $8,000 1.0% 2,000 $18.05 $36,099 $28,099 $0.14 $0.07
Printing Data Matrix ECC200 In None
Using Barcode creator for Software Control to generate, create DataMatrix image in Software applications.
Bar Code Creation In None
Using Barcode generator for Software Control to generate, create bar code image in Software applications.
If the response rate for direct mail is 1.8 percent, any direct-mail offer would be a loser. This is proof of the assertion that database marketing does not work with packaged goods. But with email, pro table database marketing becomes a possibility. The response rate will be lower, at 1 percent, but the marketing costs are far lower. The value of a prospect s name is 14 cents. A marketer might be willing to offer half that for a name. The lifetime value sets an upper boundary for the offering price. Anyone who offers to pay the full lifetime value for a prospect s name will never make a pro t. As a rule of thumb, we can assume that buyers will never offer more than half the projected lifetime value to acquire a name. So the offering price of a name with a projected LTV of $0.14 could not be higher than $0.07. So, if the offering price of a prospect name to an e-commerce consumer name buyer is $0.07, what is the name worth to the seller Here we have to consider marketing costs. Buyers do not materialize from nowhere once names are acquired. To sell names, most companies need the services of list managers and brokers who must advertise and get fees. The list owner will be lucky to get 75 percent of the offering price from any one buyer. With luck, the names can be sold several times per year. So we end up with the value of a name looking something like Table 5-5. So we have an answer for the CEO of the new dot com. His names are worth $0.16 each if he nds a good list manager and promotes the names, and if everything goes well.
USPS POSTNET Barcode Creator In None
Using Barcode generator for Software Control to generate, create USPS POSTal Numeric Encoding Technique Barcode image in Software applications.
Reading ANSI/AIM Code 39 In Visual Studio .NET
Using Barcode reader for .NET framework Control to read, scan read, scan image in VS .NET applications.
Generate UCC - 12 In Objective-C
Using Barcode encoder for iPad Control to generate, create UCC - 12 image in iPad applications.
Creating Bar Code In C#.NET
Using Barcode drawer for Visual Studio .NET Control to generate, create bar code image in VS .NET applications.
Barcode Decoder In Java
Using Barcode decoder for Java Control to read, scan read, scan image in Java applications.
Recognizing EAN13 In Java
Using Barcode reader for Java Control to read, scan read, scan image in Java applications.
Creating 1D Barcode In Java
Using Barcode drawer for Java Control to generate, create Linear image in Java applications.
EAN13 Printer In C#.NET
Using Barcode drawer for Visual Studio .NET Control to generate, create European Article Number 13 image in .NET applications.
Copyright © OnBarcode.com . All rights reserved.