TY - JOUR
AU1 - Kumar, V.
AU2 - George, Morris
AB - Customer equity, the asset value of customers, can be measured using different aggregate- and disaggregate-level approaches. The authors compare how customer equity is measured and maximized under various approaches. We find that, in the disaggregate-level approach, customer lifetime value is maximized by implementing customer-level strategies such as optimal resource allocation, purchase sequence analysis and balancing acquisition and retention spending. At the aggregate-level, improving the drivers of customer equity maximizes customer equity. A comparison of different aggregate approaches shows that, while an emphasis on retention is a common feature across approaches, conceptual differences in terms of accounting for existing customers and prospects, acquisition, and the projection period exist across the different approaches. The authors propose a hybrid approach, which addresses the issues and challenges in existing approaches and helps firms to measure and manage customer equity.
TI - Measuring and maximizing customer equity: a critical analysis
JF - Journal of the Academy of Marketing Science
DO - 10.1007/s11747-007-0028-2
DA - 2007-05-05
UR - https://www.deepdyve.com/lp/springer-journals/measuring-and-maximizing-customer-equity-a-critical-analysis-sCtzMuYPyc
SP - 157
EP - 171
VL - 35
IS - 2
DP - DeepDyve