Advantages of CLV:

 management of customer relationship as an asset 
 monitoring the impact of management strategies and marketing investments on the value of 
customer assets 
 determination of the optimal level of investments in marketing and sales activities 
 encourages marketers to focus on the long‐term value of customers instead of investing 
resources in acquiring "cheap" customers with low total revenue value[3] 
 implementation of sensitivity analysis in order to determinate getting impact by spending 
extra money on each customer[4] 
 optimal allocation of limited resources for ongoing marketing activities in order to achieve a 
maximum return 
 a good basis for selecting customers and for decision making regarding customer specific 
communication strategies 
 measurement of customer loyalty (proportion of purchase, probability of purchase and 
repurchase, purchase frequency and sequence etc.)[5] 

 Shaw, R & Stone, M. (1988) Database Marketing, Gower, London  

7. 

AIDA is an acronym used in marketing and advertising that describes a common list of
events that may occur when a consumer engages with an advertisement.

 A ‐ Attention (Awareness): attract the attention of the customer. 
 I ‐ Interest: raise customer interest by focusing on and demonstrating advantages and 
benefits (instead of focusing on features, as in traditional advertising). 
 D ‐ Desire: convince customers that they want and desire the product or service and that it 
will satisfy their needs. 
 A ‐ Action: lead customers towards taking action and/or purchasing. 

Using a system like this gives one a general understanding of how to target a market
effectively. Moving from step to step, one loses some percent of prospects.

  Ferrell, O.C. and Hartline, Michael (2005). Marketing Strategy. Thomson South‐Western.  

  Geml, Richard and Lauer, Hermann: Marketing‐ und Verkaufslexikon, 4. Auflage, Stuttgart 2008,  

The First Step of AIDA - Attention

Also called "Awareness," this is the part often overlooked by most advertisers today. It's just
assumed that people will find the product or service as interesting as the client does, but that's
rarely the case. Sadly, so many ads jump straight to Interest, and thus bypass Attention, that
the ad is doomed to failure. An ad can be as clever or as persuasive as you want, if no one
sees it, what's the point?

To attract the attention of the consumer, the best approach is called disruption. This is a
technique that literally jars the consumer into paying attention. It can be done in many ways,
including: