Customer Equity Exercise

Question:

4. Change the spreadsheet to reflect the numbers for CWES listed above (if you do it correctly you should have Customer Equity = $1,251,714). Assume that these numbers are a pretty accurate estimate of the firms current strategy. Develop three different strategies o One that emphasizes acquisition of new customers, o One that focuses on increasing customer retention, and o Finally one that promotes add-on sales. For each strategy, describe the types of actions you propose (think about what a marketing strategy entails 4 Ps and the target market). Make some reasonable assumptions about how your changes would impact variables in the model. I realize that this is a bit of a guess since you do not necessarily understand this market but give it a try. Use common sense and what you have learned as a marketing major. If you were hired by CWES, how would you improve your estimates of these numbers? Change the numbers in the spreadsheet to reflect your new estimates. What were the changes in customer equity? What other analysis would you recommend?