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    CBB - Final Assignment

    Uploaded by

    Kumar Vaibhav
    Customer Branding and business questions for ideation

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    CBB - Final Assignment

    Uploaded by

    Kumar Vaibhav
    10 views6 pages
    Customer Branding and business questions for ideation

    Original Title

    CBB - Final assignment (1)

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    © © All Rights Reserved

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    Customer Branding and business questions for ideation

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views6 pages

    CBB - Final Assignment

    Uploaded by

    Kumar Vaibhav
    Customer Branding and business questions for ideation

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 6

    Q1. What is the CIV of each customer?

    Using the diagram below, please fill in the empty cells in the

    table. Make sure to show the steps for calculating each customer’s CIV in the next page.

    Solution: Based on the diagram, the below equations will be framed:

    1. CIV(Jogi) = 0.5 * CLV (Babil) + 0.5 * CIV (Babil) + CLV(Richa) + CIV (Richa)

    2. CIV(Richa) = 0.5*CLV(Astha) + 0.5* CIV (Astha) + 0.5*CLV(Babil)+ 0.5*CIV(Babil)

    3. CIV(Babil) = CLV(Teher) + CIV (Teher)

    4. CIV(Teher) = CLV(Sahil) + CIV(Sahil) + 0.5*CLV(Astha) + 0.5CIV(Astha)

    5. CIV(Astha) = CLV(Jonson) + CIV (Johnson)

    6. CIV(Jonson) = 0

    7. CIV(Sahil) = 0
    On solving the equations from bottom to top,

    CIV(Astha) = 45+0 = 45

    CIV(Teher) = 40 + 0 + 5 + 22.5 = 67.50

    CIV(Babil) = 50 + 67.50 = 117.50

    CIV(Richa) = 5 + 22.5 + 15 + 58.75 = 101.25

    CIV(Jogi) = 15 + 58.75 + 75 + 101.25 = 250

    Q2. Based on the below information calculate the Customer Referral Value (CRV) of a typical

    customer for one year (over 2 periods)

    Solution: As per the data, annual rate of discount is 15%, therefore, half yearly discount is 7.5%

    We will use the below formula:


    1st Six months (1st half):

    = (3*((56-10-25+15)/1.075)) + (2*(15/1.1075))

    = 3*33.488 + 2*13.953

    = 128.37

    2nd six months (second half):

    = (56-10-25+15)/(1.075)^2 + 15/(1.075)^2 + (56-25)/(1.075)^2

    = 3*31.15 + 2*12.97 + 3*26.82

    = 199.89

    Net CRV = 128.37 + 199.89 = 328.26

    Therefore, Net CRV = 328.26

    Q3.

    3 (a) “By focusing the reference program efforts only on the high value customers, it is possible for

    companies to increase their CRV.”

    (1) Do you agree with this statement? If not, state all the possible reasons.
    (2) What are the drivers of maximizing CRV? Please explain rather than just listing the

    attributes.

    Solutions:

    1. I disagree with the statement because of the below reasons:

    ● Limited Vision: Only aiming at high-value customers might miss out on the chance to

    involve lower-value ones, who together can add a lot to CRV.

    ● Too Much Pressure: High-value customers might get too many referral requests, which

    could make them feel annoyed and affect how they feel about the brand.

    2. By ensuring high-value customers are satisfied, companies can encourage these key customers to

    refer others, thereby maximizing CRV.

    ○ Personalized Experiences: Providing personalized experiences and addressing the

    specific needs and preferences of high-value customers can enhance their satisfaction and

    loyalty. This, in turn, makes them more likely to become enthusiastic referrers.

    ○ Feedback and Improvement: Actively seeking feedback from high-value customers and

    making improvements based on their input can lead to higher satisfaction. When

    customers see that their opinions matter and lead to positive changes, they feel a stronger

    connection to the brand and are more likely to refer it

    3(b) To spread the WOM in social media, what drivers would you use to pick the right influential

    individuals? Does the one who spread the message to more people likely to yield more profits

    through their influence on others? Discuss the reasons

    Solution- To spread the word of mouth, the below drivers would be picked for the right influential

    candidates:
    1. Monitor the Conversations: Use social listening tools to track mentions, hashtags, and keywords related
    to your industry or brand.

    2. Identify Individuals Who Can Spread the Message: Find people already talking about topics relevant to
    your brand.

    3. Identify Factors for Ideal Candidates: Look for:

    ● Reach: Number of followers.


    ● Engagement: Interaction levels (likes, comments, shares).
    ● Relevance: Content alignment with your brand.
    ● Authenticity: Trustworthiness and genuine presence

    4. Locate All Ideal Candidates: Use social media tools to find influencers who match these factors.

    5. Recruit Ideal Candidates: Reach out to these influencers and propose collaborations that benefit both
    parties.

    6. Use Candidates in a Campaign: Incorporate influencers into your marketing campaign, letting them
    share authentic experiences.

    7. Reap the Rewards: Monitor results to see increased brand awareness, engagement, and sales.

    Big influencers may get your product seen by more people, but they don't always bring more profits.
    Influencers with engaged followers who trust them can actually be more effective. It’s key that people
    really hear what the influencer says. Even if the influencer doesn’t have lots of followers, if those who
    follow them really listen and respond, it can lead to more sales.So, it's crucial to pick influencers based on
    trust and engagement, not just their follower count, for successful social media campaigns.

    Q4. An appliance manufacturer has grouped its customers into 4 cells as given in Table 1. If the

    company wants to maximize profitability and brand value, what strategic initiatives should it take

    with respect to customers in each cell? In other words, describe your strategy with respect to the

    components of Brand Value


    Solution- Based on the above table, we can categorize the customer cells into 4 categories:

    Cell 1: Friends (High CLV and Low CBV)

    Cell 2: Fans (High CLV and High CBV)

    Cell 3: Outsiders (Low CLV and Low CBV)

    Cell 4: Infrequent Buyers (Low CLV and High CBV)

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