Case Study of AnswerDash Free-Samples for Students-Myassignment

Question: Discuss about the Cast Study of AnswerDash. Answer: Introduction The simplest formula to measure customer lifetime value is to consider the average order total multiplied by the average number of purchases in a year multiplied by the average retention time in years, which will be providing the average lifetime customer value depending on the current data. This information will be utilised with data from specific segments for improving improved retention of target as well as efforts regarding promotion. It will be providing a point of data as well in respect of use in times of segmenting the customers. The companies that will be targeted in this respect are the e-commerce companies, which will be having the requirement of ensuring new customers. The pricing model that will be followed is value based pricing. Assessment of the companys current go-to-market approach Customer Selection The team of management did the evaluation of three alternatives in respect of the selection of customers that are mentioned as under, Lower Cost of Acquisition, which will be reducing the number of stakeholders that are having an involvement in the decision Moving Upstream, which will be focusing on the sale to enterprises Going vertical, which will be targeting particular type of customers or industries (Schaat 2015) Pricing In respect of the preliminary customers, there occurred high customization related to pricing. By mid-2013, there was the creation of 3 tiers, whose initial pricing was at $99/mo., $399/mo., as well as $1499/mo. Communication The initial pitching was being made regarding the product regarding an effort for documenting the performance of the product as well as beneficial aspects in respect of attracting new customers, in which the team of management sought feedback from the existing customers they could take reference from (Schaat 2015). Sales efforts The current structure for pricing was considered being profitable when there would occur the reduction in the number of friction points in the sales funnel, which will as a result do the reduction in the customer acquisition in regard to time as well as costs. It was also being considered that when salespeople will be communicating in an effective manner for valuing larger customers, there would be the scope to adjust pricing ascendant (Pappas 2016). Measures regarding customer lifetime value Customer lifetime value is considered to be the overall percentage of money that will be spent by a customer from acquiring till the end of a business relationship. The use of the metric regarding customer lifetime values is done in respect of different marketing as well as analytical reasons. The simplest formula to measure customer lifetime value is to consider the average order total multiplied by the average number of purchases in a year multiplied by the average retention time in years, which will be providing the average lifetime customer value depending on the current data. This information will be utilised with data from specific segments for improving improved retention of target as well as efforts regarding promotion. It will be providing a point of data as well in respect of use in times of segmenting the customers (Levin 2017). Calculating the economic value of product delivery for an ecommerce vs. a software as service Numerous intricate customer lifetime value formulas will be deducting acquisition as well as cost of marketing from the final total. There will occur the calculation of the cost of acquisition by dividing all expenses in relation to the aspect of acquiring by the number of new customers that has been achieved in similar period of time. It is effective to deduct the cost of acquisition to plan the strategies for acquisition as well as to do the measurement of various campaigns success (Ryan 2016). In respect of software as service, there occurs the combination of predictive customer modelling as well as better multi-channel campaign automation technological aspects that assist businesses in maximizing their consumer loyalty, retention as well as lifetime value (Levin 2017). Three primary options that is being contemplated The three primary options that the company is contemplating are Lower Cost of Acquisition, which will be reducing the number of stakeholders that are having an involvement in the decision, Moving Upstream, which will be focusing on the sale to enterprises and Going vertical, which will be targeting particular type of customers or industries (Kleinaltenkamp 2015). The option that is being recommended in this context, is the option regarding Going vertical, which will be targeting particular type of customers or industries. This is because, the organizational team will be focusing on e-commerce organizations with a message to do the reduction of cart desertion, or to focus on SaaS organizations having a message to the reduction of customer assistance tickets (Hollensen 2015). SaaS organizations require serving in a more efficient as well as effective way for the present customers with the answers regarding the ways by which software will get used, and while e-commerce organizations require ensuring new consumers (Hintze 2014). Developing a marketing strategy and plan The companies that will be targeted in this respect are the e-commerce companies, which will be having the requirement of ensuring new customers. The pricing model that will be followed is value based pricing. The current structure for pricing was considered being profitable when there would occur the reduction in the number of friction points in the sales funnel, which will as a result do the reduction in the customer acquisition in regard to time as well as costs. It was also being considered that when salespeople will be communicating in an effective manner for valuing larger customers, there would be the scope to adjust pricing ascendant (Hallback 2013). Conclusion In this assignment, The three primary options that the company is contemplating are Lower Cost of Acquisition, which will be reducing the number of stakeholders that are having an involvement in the decision, Moving Upstream, which will be focusing on the sale to enterprises and Going vertical, which will be targeting particular type of customers or industries. In respect of software as service, there occurs the combination of predictive customer modelling as well as better multi-channel campaign automation technological aspects that assist businesses in maximizing their consumer loyalty, retention as well as lifetime value. Reference Hallbck, J. and Gabrielsson, P., 2013. Entrepreneurial marketing strategies during the growth of international new ventures originating in small and open economies.International Business Review,22(6), pp.1008-1020. Hintze, S. and Lthje, C., 2014. The evaluation of Value Chain Marketing strategies: an agent-based approach. InSimulating Knowledge Dynamics in Innovation Networks(pp. 47-72). Springer Berlin Heidelberg. Hollensen, S., 2015.Marketing management: A relationship approach. Pearson Education. Kleinaltenkamp, M., Plinke, W., Wilkinson, I. and Geiger, I., 2015.Fundamentals of Business-to-business Marketing. Springer. Levin, R.P., 2017. Commentary: Online Reviews and Other Digital Marketing Strategies.Journal of Periodontology,88(2), pp.135-136. Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying behaviour.Journal of Retailing and Consumer Services,29, pp.92-103. Ryan, D., 2016.Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers. Schaat, S., Miladinovi?, A., Wilker, S., Kollmann, S., Dickert, S., Geveze, E. and Gruber, V., 2015, September. Emotion in consumer simulations for the development and testing of recommendations for marketing strategies. InProceedings of the 3rd Workshop on Emotions and Personality in Personalized Systems 2015(pp. 25-32). ACM.