Which type of customer delivers more value to JC Penny? Use simple CLV assessment to highlight the key differences between the two types of customers. Use qualitative rather than quantitative analysis to justify your answer here.

A

In general, both existing and new customers can generate a significant annual profit. It can be proven by the company’s history as it managed to acquire high incomes; at the same time, the paying capacity of millennials is also high, and they can spend a lot. Furthermore, because of loyalty to the company, the existing customers have a longer lifetime as they prefer to shop in already known stores, while millennials always look for new places. Finally, the acquisition of new target customers is a costly process as the restructuring of the company is needed.

 –Existing CustomersPotential New Customers
Annual Profit HighHigh
Customer Lifetime (in years) High (5-10 and more) Low (1-5)
Acquisition Cost LowHigh
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Academic.Tips. (2021) 'Which type of customer delivers more value to JC Penny? Use simple CLV assessment to highlight the key differences between the two types of customers. Use qualitative rather than quantitative analysis to justify your answer here'. 5 August.

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Academic.Tips. (2021, August 5). Which type of customer delivers more value to JC Penny? Use simple CLV assessment to highlight the key differences between the two types of customers. Use qualitative rather than quantitative analysis to justify your answer here. Retrieved from https://academic.tips/question/which-type-of-customer-delivers-more-value-to-jc-penny-use-simple-clv-assessment-to-highlight-the-key-differences-between-the-two-types-of-customers-use-qualitative-rather-than-quantitative-analysis/

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Academic.Tips. 2021. "Which type of customer delivers more value to JC Penny? Use simple CLV assessment to highlight the key differences between the two types of customers. Use qualitative rather than quantitative analysis to justify your answer here." August 5, 2021. https://academic.tips/question/which-type-of-customer-delivers-more-value-to-jc-penny-use-simple-clv-assessment-to-highlight-the-key-differences-between-the-two-types-of-customers-use-qualitative-rather-than-quantitative-analysis/.

1. Academic.Tips. "Which type of customer delivers more value to JC Penny? Use simple CLV assessment to highlight the key differences between the two types of customers. Use qualitative rather than quantitative analysis to justify your answer here." August 5, 2021. https://academic.tips/question/which-type-of-customer-delivers-more-value-to-jc-penny-use-simple-clv-assessment-to-highlight-the-key-differences-between-the-two-types-of-customers-use-qualitative-rather-than-quantitative-analysis/.


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Academic.Tips. "Which type of customer delivers more value to JC Penny? Use simple CLV assessment to highlight the key differences between the two types of customers. Use qualitative rather than quantitative analysis to justify your answer here." August 5, 2021. https://academic.tips/question/which-type-of-customer-delivers-more-value-to-jc-penny-use-simple-clv-assessment-to-highlight-the-key-differences-between-the-two-types-of-customers-use-qualitative-rather-than-quantitative-analysis/.

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