Customer Asset Management And Metrics

Recently, there has been an increasing tendency for the market which focusing on customer's relationship with the company. Such changes force marketers to put Customer Equity at their center. The article gives guidance on how such an approach and its core methods could look. It begins by briefly reviewing prior research concerning how the new situation of economy and customers influence companies. Then it confirms Customer Equity as an asset and gives its definition. Before addressing Customer Equity itself, the article starts with analysing determination of Customer Lifetime Value and generates a general calculation model for it. Based on which the calculation model of Customer Equity is established. After that, the article links marketing and managing activities, such as pricing decisions, satisfaction improvement programs and distribution channel decisions, with Customer Equity. By providing a set of theory-based propositions regarding the effects of the marketing and managing activities,the article propose a framework for understanding customer asset management as a guidance for companies to follow.