FUNDAMENTALS

OF SERVICE
Scope of Service
Service as a Service as an Service as a Core
Concept Organization Product

Service as an Service as Product Service as an Act

Augmented Product Support

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SeRvice VS
Product/Goods
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CHARACTERISTICS OF
SERVICE

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Heterogeneity Intangibility

SERVICE

Inseperability Perishability

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CUSTOMERS
VS

users

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A merry heart
does good like
medicine

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What is the Value
of a Customer?
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What is the Value of a Customer?
The value of a customer is not the Customer Lifetime Value =
value of his or her last purchase. (Average Value of a Sale) X
(Number of Repeat Transactions) X
Rather, the real value of a (Average Retention Time in Months
customer is the amount of or Years for a Typical Customer)
products or services they
purchase, how often they
purchase them, how long you
anticipate they will continue to
purchase, and the amount of word
of mouth advertising the customer
may represent.

Let’s see a Customer Lifetime Value Example:

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Customer Lifetime Value Example:
What is the CLV for 6 In One Year :
years if a customer N70,000 X 4 quarters
spends N70,000 X 1 year =
every quarter on your N280,000
services? In Six Years:
N280,000 X 6
=N1,680,000

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Now you can see even
from this simple
hypothetical example
that when we know the
value of a customer, we
get an idea concerning
what we may want to
spend to make the
customer happy.
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Any questions?

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Thank You!

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 Prepared and Delivered by
O’tega Samuel Emorwodia
Linktr.ee/OtegaSamuelEmorwodia

@OtegaSamuelEmorwodia

@SamuelEmorwodia

@Emorwodia

Author | Entrepreneur otega@crustmine.com

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