Customer Life Time Value-Hera

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By

Uranee Yokanit

The sustainable Jewels


Modern Definition of beauty

DISCLAIMER
The following presentation is intended to promote the educational knowledge related to Sustainable Development in Luxury.
All advertised photos and Referenced Content used in presentation belong to their original producers and/or owners.
None of these photos and Referenced Contents will be used to produce a profit.
By Managing Director’s Messages
Uranee Yokanit
The sustainable Jewels
For the confident woman with a sense of purpose, HERA Jewels creates
lifestyle jewels with intricate designs, evokes spirited energy, and captures the
natural beauty of a woman’s soul. HERA Jewels sources highest quality jewels,
collaborate with world renowned artisans, and maintains true to brand heritage while
embracing to emerging trends.

Inspired by universal immensity and boundless possibilities, HERA Jewels


commits not only is her jewels beautiful and extraordinary, but also reflects the
sustainable integrity. HERA Jewel promotes transparency and traceability
throughout the jewelry supply chain. HERA Jewels ensures that sourcing standards
apply
. throughout the entire journey of a HERA Jewels’ diamond, ensuring that each
HERA Jewels diamond can be given or worn with pride.

Because Giving is timeless value, HERA Jewels is proud


to lead the industry with regard to responsible sourcing
23 April, 2014
through the practice of Fairtrade and Fairmined. Uranee Yokanit
By
Uranee Yokanit
The Story
Named after HERA, the supreme Greek goddess, due to her strength,
power and natural beauty. It has been said that HERA was often envied
by others because of her personal jeweler who created pieces for her,
inspired by his nights gazing into the sky.

Inspiration is all around us and exists within our very being.


HERA JEWELS is the marriage between art and science which
resulted in the birth of a love child. Created with emotion,
boundless possibilities, and passion, HERA JEWELS mirrors its
craftsmanship after the universe and natural elements such as
the stars, the moon, and the constellation.
By Brand Model 2. Brand Positioning  Price: Premium
Uranee Yokanit High Quality
 Quality: High
 Uniqueness:
1. Brand Hierarchy High
 3 Tiers Products  Market:
 High Jewels Premium++
$ 60K-$ 1 Million
 Core Jewels High
High Price
 Accessible Jewels Uniqueness
$ 20K-$ 55k+

$ 3K-$ 15k+ High


Market Segment

3. Customer Persona 4. Channel of Distribution


 Age: 35-55
 Income: 300,000 US$/year  USA: NYC, Texas  Direct Controlled Salons
USA
 Occupations: Investors, Chief executives, ( NY, Dallas)  Flagship areas in NYC and
entrepreneurs, heiresses, royal families Texas
 Interests: opera, wine, flying private  Direct Visit Marketing.
(international travel), private events
 Shops: Neiman Marcus, Bergdorf Goodman
By
Uranee Yokanit
Customer Value Preposition
Because Giving is timeless value, HERA Jewels is proud to lead
the industry with regard to responsible sourcing through the
practice of Fairtrade and Fairmined.

Positioning itself as the sustainable Jewelry, HERA Jewels' core value provides personal touch points reflecting the generous
spirits of modern women today. Through its sustainable integrity and fairness to people around, HERA Jewels ensure that each of
its diamonds can be given or worn with pride.

Not only does HERA Jewels provide the power of generosity to women, but also the extraordinary and uniqueness of its Jewels
design inspired by the boundless possibilities of universe. HERA Jewels are the symbol of sense of purpose, and the immensity
reflecting spontaneous, and beyond of expectation of women that could inspire the lives of their lovers and children.

HERA Jewels
Modern Definition of beauty
By
Uranee Yokanit
Customer Journey
The start of Journey
 The salons were newly modified with glass cases of Jewelry to offer the same exclusive
browsing experience as customers were in private bank.

 The atmosphere in the salons is peacefully and the sections are well arranged in orders.

 The entry-price point ensure that the experience of shopping at HERA Jewels is exclusive.

 The extravagant jewelry with the precious price and also the limited edition of High Jewelry
will be locked away in glass counters in the larger room inside; while the entry area will be
available for the accessible lines.

 The second-floor selling Salons, with parquet floors and Louis


XV furniture.Visitors ascend to it in the private elevator that
can fit only couple of people. “This is where young couples
view their wedding rings”

 In some cases, our loyalty clients don’t come to the Salon at


all; HERA Jewels sales executives meet the clients at their
homes. The salons in both New York and Dallas are
consistently displayed.
By
Live Time Value Calculation
Uranee Yokanit CLTV High Jewels
 Average Customer spend = Year 1 Year2 Year3 Year4 Year5
$80000/purchase
Revenue per customer $64000 $64000 $64000 $64000 $64000
 Gross Margin associated Sales = 40%
 Average Profit Per customer = $ 32000 One Time Acquisition (-) $
 Customer purchase = 2 times a year cost 35,000
 Yearly Revenue = $ 64000/customer Marketing cost ( via
 One time Acquisition Cost = $35000 ( direct visit) per customer $700 $700 $700 $700 $700
$700 per customer, 2% response) per year
 Discount 15% Profit per customer in $53805 $53805 $53805 $53805 $53805
Remark: Year
 This is the calculation per customer ( after 15%discount)
 In industry, we need to see Expected Present Value $53805 $34973 $23136 $14796 $9631
percentage market share compared In Year.
within the industry and able to
calculate the total number of Cumulative Net Present $18805 $53778 $76914 $91710 $101341
customers for total revenue of Value
market segment. Cumulative Retention 100% 65% 43% 27.5% 17.9%
late
Reference tool: http://hbsp.harvard.edu/multimedia/flashtools/cltv/
By
Live Time Value Calculation
Uranee Yokanit CLTV Core Jewels
 Average Customer spend = $25,000 Year 1 Year2 Year3 Year4 Year5
/purchase
Revenue per customer $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
 Gross Margin associated Sales = 40%
 Average Profit Per customer = $ 10,000 One Time Acquisition (-) $
 Customer purchase = 4 times a year cost 20,000
 Yearly Revenue = $ 40,000 Marketing cost ( via
 One time Acquisition Cost = $20000 ( direct visit) per customer $400 $400 $400 $400 $400
$400 per customer, 2% of response) per year
 Discount 10% Profit per customer in $35640 $35640 $35640 $35640 $35640
Remark: Year
 This is the calculation per customer ( after 10% discount)
 In industry, we need to see Expected Present Value $35640 $23166 $15325 $9801 $6380
percentage market share compared In Year.
within the industry and able to
calculate the total number of Cumulative Net Present $15640 $38806 $54131 $63932 $70312
customers for total revenue of Value
market segment. Cumulative Retention 100% 65% 43% 27.5% 17.9%
late
Reference tool: http://hbsp.harvard.edu/multimedia/flashtools/cltv/
By
Live Time Value Calculation
Uranee Yokanit CLTV Accessible Jewels
 Average Customer spend = $5500 Year 1 Year2 Year3 Year4 Year5
/purchase
Revenue per customer $ 8,800 $ 8,800 $ 8,800 $ 8,800 $ 8,800
 Gross Margin associated Sales = 40%
 Average Profit Per customer = $ 2200 One Time Acquisition cost (-) $
 Customer purchase = 4 times a year 10,000
 Yearly Revenue = $ 8800 Marketing cost ( via direct (-) $200 (-) $200 (-) $200 (-) $200 (-) $200
 One time Acquisition Cost = $10000 ( visit) per customer per year
$200 per customer, 2% response) Profit per customer in Year $ 7740 $7740 $7740 $7740 $7740
 Discount 10% ( after 10% discount)
Remark: Expected Present Value In $7740 $ 5031 $3328 $2128.5 $1385
 This is the calculation per customer Year.
 Analysis Cumulative Net Present (-)$2260 $ 2771 $6099 $8227.5 $9612.5
 Compared to High, and Core Jewels, the
Value
accessible line is the category that are of Cumulative Retention late 100% 65% 43% 27.5% 17.9%
the risk of low return.
 Manager could opt for no discount rate or
reducing the marketing cost for this line.
Reference tool: http://hbsp.harvard.edu/multimedia/flashtools/cltv/
Live Time Value Calculation
By
Uranee Yokanit CLTV Accessible Jewels Benchmark
Remark
 The calculation of CLTV in this
presentation was benchmarked by the
Sample case from Harvard Business
School.
 We found the different in figures, this
could be the different ways as the model
was calculate the cumulative discount
rate; while the calculation in presentation
fixed it constant in each year. This is
because the revenue should be varied
according to customer retention rate
which is cumulated already.

Reference tool: http://hbsp.harvard.edu/multimedia/flashtools/cltv/

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