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.
- 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.
Popularity: 2% [?]
Related posts on GavrielShaw.com:- 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...
- Sales Dept Must Be Subordinate to the Marketing Function For Leveraged Performance Let´s confess the crippling problem of today's B2B sales and marketing systems. Sales typically engages prospects far too early in...
- Customer marketing opportunities to consider Some notes I have on file for a few different types of customer marketing opportunities. Past customer reactivation Loyalty programs...
- Focus on wallet share - not new customers - for more profitable business growth Notes adapted from an Experian presentation Companies would do well to focus less on new customer acquisition. More on customer...
-
Business Marketing Performance Objectives and Indicators (download a pdf version) This diagram needs an orientation... First, the diagram shows different types of coloured box that have...
- Why Corporate Blogs Are So Important When it comes to reaching out to your customers or building up your customer base, a blog is a very...
- Marketing On The Internet Explained - Your Road To Big Profits For business expansion marketing is necessary for all organizations irrespective of its size. The marketing section plays a very crucial...
- How to Get Insurance Based on Rare Coin Values You do everything you can to get a good coin collection. You go to all the right places to get...
- Review:Barnes & Noble Nook E-Reader The Nook features a six inch grey and white reading display and color touch-screen controls at the bottom of the...
- Will Be 50Cent To Hear On Dr.Dre's Detox Album? because 50cent said that he stop rapping when Kanye west wins and i wan't to know if he stays in...




