Customer Equity | Value, Brand and Retention

The book 'Driving Customer Equity: How Customer Lifetime Value is Reshaping Corporate Strategy' defines customer equity as 'the total discounted lifestime value of all of an organizations customers'.

Three drivers of customer equity are identified:

Value equity – perceptions of an organizations quality, price and convenience. These perceptions are cognitive, objective, and rational
Brand equity – Emotional, subjective and sometimes irrational perceptions of image, quality, prestige, or other emotional forms of desirability.
Retention equity – Recent of purchase as positively effecting favorable brand loyalty

Customers must become an element of the organizations summary of key performance indicators:

Track profit goals for various customer segments, and clearly differentiate customer groups based on value.


(more on Professional Marketing)

Most valuable customers (MVCs) – depending on how you define 'valuable'
Most Growable Customers (MGCs) – Niche areas that have high growth potential
Most Costly Customers (MCCs) – removed from further promotional activities

Originally posted 2008-08-17 12:55:10.

Related posts:

Don't wee all over your customers Does your company's marketing collateral 'wee' all over your prospect? Does it focus on 'we the company', professing how great...
The Career Troika This blog site is gradually evolving into wider aspects of business. It started from Copywriting and basic Online Marketing. Considered...
Product Differentiation and Positioning Traditional positioning is done via 2 competing forces Price Uniqueness Uniqueness relates to the degree of differentiation, which can be...
Aggressive Key Performance Indicators Tracking of Marketing Campaigns ultimately lead to a handful of numeric measurements. These are a marketers KPIs (Key Performance Indicators)....
How Tesco continues to win customer loyalty Notes from the book Scoring Points by Humby, Hunt and Phillips on the story behind Tesco's customer data strategy. Terry...

Possibly related from other sites:

Judging Your Collection Based on Coin Collecting Values If you are serious about collecting coins, then one of the things that you should be putting consideration into when...
For Sale: P2P Lending Technology (Editor's Note: This is a serious post and potentially a great opportunity for the right 3rd party.Â This offer does...
Who Owns Your Favorite Organic Food Brands? You may be surprised to find out, I am just warning you now. I wrote a little about this in...
Successful Online Business - Tips To Build Successful Business How to build successful online business ? This question every business men has to ask. For any kind of business,...
Multichannel Cost Management - How to Tighten Your Belt Without Feeling the Pinch Trim the Fat and Leave the FiletThe economy is delivering a one-two punch of higher costs and lower sales. It...