Assignment task:
Customer Profitability Analysis (CPA) and Customer Lifetime Value (CLV) List the likely characteristics of a profitable customer for: (i) a fashion retailer and (ii) an insurance company. Link these characteristics to components of the CPA and CLV frameworks. Two examples are provided below to guide you. A profitable customer is one who: Fashion Retailer (e.g., Zara, Uniqlo, H&M) Insurance Company (e.g., SGIO Insurance, Youi Insurance) An example: Buys in-season clothing rather than on sale clothing items (CLV component - Sales revenue) An example: Pays insurance premiums promptly and on- time (CPA component - low cost to serve)