The Study On Assessment And Promoting Of Customer Equity Value

The research on customer equity has been a hot pot and also a difficulty in both the academic studies and practical application areas these years. The customer equity perspective is different from the previous product / brand profitability analysis, but views the enterprise profitability from a new point of view that the customers are the core of the enterprise operation, and takes them as a strategic equity for the enterprise management, to direct marketing, information management and corporate strategies.According to the customer equity theory, more valuable customer relationship, more beneficial trade and cooperation, the more reliable customer loyalty as well as sustainable profitability, can bring tremendous benefits to the enterprise and help the enterprise overcome the erosion of customer base in virtue of the product-oriented strategy, to identify the more effective marketing activities to the enterprise more accurately, pay comprehensive attention to the value and non-monetary revenues rooting in the customers, and to evaluate and promot the marketing performance more effectively. Customer equity value has become increasingly the basis of potential customer development, marketing strategies establishment, the allocation of marketing resources decisions, and contributes to the promotion of the entirety value of the enterprose, and the establishment and maintenance of the competitive advantage. To realize the market-oriented, customer-centered and efficiency-aiming strategies effectively, the enterprise should regard the customer resources as an equity, quantitatively assess the customer equity value and, design and implement appropriate value promoting plans.Theoretically speaking, the customer equity value is the core of customer equity theory, and the value assessment paves the way for the value promoting. However, the quantitative assessment of the customer equity value is a big problem troubling the enterprise, and most of the analyses still stay in qualitative research and quantitative analysis of a simple stage in the academic research area as well as the practice so far. The blurry understandings of customer equity value, value assessment technologies and promoting strategies have hindered the application of the customer relationship management to some extent. Although unable to accurately figure out either the customer's actual contributing profit or the customer equity value during the contact with the enterprise, according to the characteristics and attributes of the customers and the marketing management activities, we can still assess and predict the size of customer equity value. The enterprise can get to know exactly the profitability of the customers via the customer equity value assessment, and this contributes to the customer segmentation, formulate the "one to one" marketing strategy aiming at different types of target customers and meet their special needs, to enhance the up-buying and cross-selling, maximize returns in terms of customer satisfaction levels, customer loyalty and customer retention, and to take full advantage of the current customer basis and expand it. To promote customer equity value also needs to follow and manage this important strategic equity. The customer equity value is dynamically changing, with the development and change in the customer-enterprise contacts, the factors related to customer equity value may be strengthened, or weaken. The enterprises should focus on the customer profitability with real-time attention, and selectively acquire, maintain and win back customers, by creating and delivering excellent value, strengthening cross-selling to extend the customer retention time and increase the customers'share of wallet; should effectively manage and utilize the potential values and related effects of each customer, ensure the efficiency of the promoting process and the variables to effect being under control, to optimize the structure of the customers and maximize customer equity value.The article can be divided into five parts. That is, the introduction, the summarization of theories, the customer equity value modelling assessment, the customer equity value promoting and the conclusion.The first part is the introduction of the paper, discussing the background and significance of the topic, as well as the framework and conclusion of it.Chapter two goes on in detail expounding the theory of customer equity and related, including the introduction of the major research projects about customer equity in domestic and foreign countries, customer equity essence and the real characteristics of it, the customer life cycle theory and the customer equity value promoting theory, and draws that the customer equity is one kind of equity-oriented relationship formed between the enterprise and the customers, with bidirectional value creation, and reflacts a good faith basis and a variety of strategies for customer retention achieving the shared values of social relation of production; the customer equity possesses some traits such as low controllability, dynamic changes, future profitability, forming the core competitiveness, etc.; the customer equity value is major built by customer purchasing value, cross-selling value, referral value and information value, which can be explained by the"service-profit"chain. Then the paper goes on to the discession of the development process, advancement and defect of the customer equity value assessment and promoting theories related. These studies settle solid theoretical foundation for the construction of the customer equity value assessment model and for the customer equity value promoting.Chapter three and chapter four are the key part of this paper. Chapter three focuses on the customer equity value assessment model. It discusses the purpose, principles and process of the assessment, and puts forward the assessment model of customer equity value by utilizing the Income Present Value Method in the aspects of customer equity value composition and customer life cycle; then provides the assessment or determination methods of the model parameters involved by using the Net Present Value method, Regression Analysis, Logistic Model, Analytic Hierarchy Process, Fuzzy Judgment, etc., and point out the adaptability and application of customer equity value assessment, then give an example of the analysis and application of the assessment model proposed.Chapter four discusses about the promoting of customer equity value. It begins with the motive, premise, objectives and core of the promoting. Then turns to the analysis of affecting factors and strategies of acquisition, and the confirmation and quality analysis on the foundation of customer profitability and customer loyalty; then brings forward the strategies of prolonging the customer retention time, increasing the customer share, and enhancing the customer loyalty to maintain; it also analyses the model and implementation of customer equity transaction. Finally, it disucsses the value promoting workflow.Chapter five is the conclusion of this study which summarizes the research results, defects and direction of further studies.This paper tries to rich the customer equity theory via the study on assessment and promoting of customer equity value, hoping to provide the enterprise with some practical references about how to assess customer equity value, grasp the value of the customers, take full use of the customer resources and promote the customer equity value on the current stage.