MKTG30009 Chap.10 Digital Business Models, Supporter Value and Retention

Digital Business Models, Supporter Value and Retention

Define digital business model

The course material gives this chapter a concrete anchor: Week 10 connects business models, supporter value and retention.

That digital business model anchor controls how customer lifetime value is explained and how retention is tested in changed practice.

Digital Business Models, Supporter Value and Retention frames a decision through digital business model, customer lifetime value and retention.

The objective is to design onboarding, repeat value and capacity around retention, so the chapter should be read as a chain from problem definition to evidence, option comparison and accountable action.

Start with digital business model and name the decision owner, affected stakeholders and time horizon.

The same digital business model fact can matter differently across those positions, so the opening frame determines which evidence is relevant.

Use customer lifetime value to explain how the present condition produces an opportunity, cost or risk.

A strong customer lifetime value mechanism states what changes, for whom and through which organisational, market or institutional process.

Trace customer lifetime value

Apply retention when comparing options. Keep the retention criteria distinct, test trade-offs and ask which assumption drives the recommendation.

A score or matrix helps only when its criteria are justified by the case.

For the application — design onboarding, repeat value and capacity around retention — finish with an actor, action, rationale and review trigger. This turns the retention analysis into a recommendation while keeping the decision open to new evidence.

Build a decision ledger.

Separate the current condition, the stakeholder affected, the evidence supporting digital business model, the mechanism represented by customer lifetime value and the criterion supplied by retention. If a retention recommendation cannot point back to one of those entries, it is probably preference dressed as analysis rather than a consequence of the case.

Compare at least two feasible options against the same criteria.

State who benefits under retention, who bears cost or risk, what capability implementation requires and what evidence would reveal failure.

This comparison is essential when students need to design onboarding, repeat value and capacity around retention, because an attractive option is not defensible until its trade-offs are visible.

Test with retention

Rehearse the mktg30009 digital business model response as a short briefing: one sentence for the decision, two for the evidence and mechanism, one for the alternative and one for the qualified recommendation.

Then expand only the customer lifetime value move that needs more support. This protects the argument structure under a strict word or time limit.

A complete response should make the task visible before the detail: identify what must be decided, define the relevant terms, connect the evidence to customer lifetime value, and use retention to test the result.

The final sentence about retention should answer the question actually asked rather than merely repeat the topic.

The controlling limit is specific: Retention can be mismeasured when cohorts, eligibility or observation windows differ.

Keep that retention limit beside the worked example, because it separates a careful mktg30009 answer from one that sounds confident but claims more than the task or evidence supports.

For revision, retrieve digital business model, customer lifetime value and retention without notes, explain their relationship aloud, then complete a changed version of the application: design onboarding, repeat value and capacity around retention.

Record the first failed customer lifetime value reasoning move and repair it before attempting another case.

What this chapter covers

• 01

  digital business model

• 02

  customer lifetime value

• 03

  retention

• 04

  Applying digital business model

• 05

  Limits of customer lifetime value and retention

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Key terms

digital business model

Logic by which digital capabilities create, deliver and capture economic or mission value. This chapter uses the concept when students design onboarding, repeat value and capacity around retention. Use this definition when the task is to design onboarding, repeat value and capacity around retention.

customer lifetime value

Present value of expected future contribution from a relationship under model assumptions. It helps explain the reasoning required to design onboarding, repeat value and capacity around retention. Use this definition when the task is to design onboarding, repeat value and capacity around retention.

retention

Continuation of a valuable relationship or behaviour across defined periods. Its limit matters because retention can be mismeasured when cohorts, eligibility or observation windows differ. Use this definition when the task is to design onboarding, repeat value and capacity around retention.

Digital Business Models, Supporter Value and Retention FAQ

Exam move

Reconstruct the relationship among digital business model, customer lifetime value and retention; complete the chapter application without notes; then test the result against this limit: Retention can be mismeasured when cohorts, eligibility or observation windows differ.

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