Lifetime Value (LTV) and Customer relationship management

Lifetime Value (LTV) and Customer relationship management

The two selected theories that were strongly applicable to the previous sections were Lifetime Value (LTV) and Customer relationship management.

Lifetime Value

Customer Lifetime Value is the net present value of the expected future expenditure pattern or financial input to a business by the customer. Dealing with the lifetime value of a customer calls a business to focus on various significant aspects. When companies are engrossed in building customer equity, they end up losing more customers; the balance between sales for profit and creating a value-based relationship with customers is hard to strike. The focus on customer-related issues is the key to growing any business; customer satisfaction will always generate revenues, thus creating a high lifetime value (Peppers & Rogers, 2011).

Cactus Club Café should focus on the below aspects in order to solve their weak areas:

Customer Attitudes

Customer attitudes deal with the point of view, moods of a customer that can only be evaluated through a field market research or surveys. Due to the many bad reviews, Cactus Club Café ought to apply this principle through generating customer-specific forms, in other words, use questionnaires as a research methodology in order to understand the customers’ real point of view. This principle is mainly encouraged to be conducted on regular customers since these have a high LTV potential due to their customer loyalty; these choose to become regulars despite various disapprovals; therefore, their view is genuine. Non-regulars’ reports are also of significant impact for the business to know how their first impression on newbies is. Most of the reviews posted about Cactus Club Café are from first-timers who could have been potential customers, meaning, some of the Club Café restaurants do not appeal to many customers (Peppers & Rogers, 2011).

Customer Experience

Focusing on customer experience will ensure quality services are always offered. Excellent customer interaction will impact, customer relationship, improved customer loyalty and lifetime value and will also draw more customers due to good remarks about the experience (Peppers & Rogers, 2011).

Customer Relationship Management

CRM entails creating and implementing managerial policies with the aim of increasing the customer base value via better relationships with customers on an individual basis. CRM can also be perceived as a set of principles designed to draw a company or business closer in touch with its customers, with the aim of creating a relationship, improve customer profitability, retention and acquisition. Cactus Club Café’s waiter Joe who received numerous affirmations seems to have mastered this art while the owners of these Cactus Café restaurants seem not to concentrate on and offer active customer service. If Club Café put much effort in this category, some awful reviews and comments could not have been written (Peppers & Rogers, 2011).

Cactus Club Café Remedy Suggestions

Due to the overflowing number of customers, a challenge arises to provide the best customer experience hence the focus shifting from the customer to the money. To solve this, the Cactus Club Café should perform a staff analysis to check whether the business is understaffed by evaluating the restaurant and bar capacity and identifying peak hours. This will enable the hotel to be ready for masses to serve them and moreover, give them the best customer experience. The worst thing a hotel can have is, have a full house capacity of customers ready to spend but waiters and chefs are failing; therefore a staff checkup is vital, to make sure at all times the best service is given at all times.

Scheduled staff training, on interpersonal virtues in the hotel business, would be an excellent opportunity, since the staff, especially the waiters who engage the customers directly will get to have the right temperament. Customer experience is not in the hands of the owner but is in the one who engages the customer; therefore, equipped workers will be productive, knowing how to handle pressure and perseverance for the sake of the mission of the business.

In relation to the themes

The themes focus on the customer, satisfaction, loyalty, all in the aim of convincing the convincing to be part of the enterprise for a long term equity reception. This is only possible if the ones engaging the customers are well trained and do not bring forth their issues during service of the customers; it requires sober waiter, waitresses, manager and chefs to be fully functional. A concentration on the customer mood, point of view, and making necessary changes in accordance with reviews and customer preferences will help build customer loyalty, hence increasing lifetime value. Moreover, when customers feel their needs are heard and considered, the customer relationship with the enterprise becomes stronger, thus increasing loyalty due to proper Customer Relationship Management.

Conclusion

The Cactus Club Café is indisputably one of the topnotch food and bar service restaurants in the globe, providing the best of Canadian and international cuisines and elegant customer experience. The only disputable factors seem to be in their service delivery, the restaurant does not have the consistency of excellence in giving the best as they claim it, and as the customer expects with such a hotel. As the focus of this paper was explicitly scrutinizing the hotel to evaluate its service management, it is best that businesses focus more on customer experience to influence the customer loyalty and lifetime value, which will obviously reflect in the business’s finances.