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Case Study: Managing The Customer Life Cycle

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4. Managing the customer life cycle. Theory and practice in the company.
Customer life cycle (CLC) is a representation of the stages that customers go through in their relationship with a company, as seen from the customer perspective (Buttle & Maklan, 2015). The lifecycle can be separated into main 3 stages which are customer acquisition, customer retention and customer development.
4.1 Customer Acquisition
Customer acquisition is the first stage of CLC. Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers (Customer Acquisition - Meaning and its Process, n.d.). New customer is a must to be acquired by a company no matter you are new company or well established company. …show more content…
Cross selling and up-selling are the main strategies use to develop the value of customers. Cross selling is selling additional products and services to an existing customer whereas up-selling is selling higher priced or higher margin products and services to an existing customer (Buttle & Maklan, 2015). Sometimes, companies may also employing CRM technologies to aid the customer development process. One of the software used are data mining. Data mining is transactional histories record what customers have already bought (Buttle & Maklan, 2015). This software will analyse and show the probability of customer buying any other products based on their purchasing histories or even demographic and psychographic …show more content…
Besides coffee, it is offering sandwich, wrap and muffin for breakfast. For lunch, there are variety of pastry to be offered and cakes for tea time. F Starbucks pays close attention to how all of its meals will complement to its coffee. The increasing in food offerings help Starbucks to generate more revenue from its existing customer. Moreover, it can utilize the fridge space for the meal ingredient besides keeping house dairy products. Thus, the strategy for increase offering in meals help Starbucks to meet economies of scale with the resources available. Furthermore, Starbucks is applying up-selling method with offering their customer for up-size of coffee with few bucks with worth than buying another cup of coffee. Some Starbucks fans will also willing to buy up-sized coffee as it is their favourite

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