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Title: Customers as investment objects : a new perspective on marketing
Authors : Heitz, Christoph
Bütikofer, Stephan
Dettling, Marcel
Proceedings: Conference proceedings of the 13th international science-to-business marketing conference on cross organizational value creation
Pages : 257
Pages to: 271
Conference details: 13th International Science-to-Business Marketing Conference on Cross Organizational Value Creation, Winterthur, 2–4 June 2014
Publisher / Ed. Institution : Fachhochschule Münster
Publisher / Ed. Institution: Münster
Issue Date: 2014
License (according to publishing contract) : Licence according to publishing contract
Type of review: Not specified
Language : English
Subjects : Marketing; CLV; Customer equity; Cost-benefit analysis
Subject (DDC) : 658.8: Marketing management
Abstract: Customers have always considered as one of the most important assets of a firm. The concept of Customer Equity (Rust, Zeithaml, Lemon, 2000) has given this idea a conceptual and methodological foundation. Marketing can then be seen as the attempt to maximize Customer Equity by corresponding activities. For doing this, we focus on the Customer Lifetime Value (CLV) and ways for its maximization. While the CLV has become a well-studied concept in marketing with a lot of literature coverage, much less work has been done in developing methods how to increase CLV. As an active increase in CLV always requires some activities, it is coupled with costs, and a cost-benefit analysis has to be made. We develop a new model for such a cost-benefit-analysis, by considering a customer as an investment object: A customer treatment incurs costs today, while, on the other hand, it generates returns in the future, over the lifecycle of the customer. Since a customer can receive different forms of treatment, there are in fact different investment options available. When trying to increase the CLV, these options have to be compared to each other. By formalizing this approach in a quantitative model, we create a framework for describing the cost-benefit profile of an individual customer. With this framework, optimum treatments can be identified, and the optimum height of investment into a single customer can be determined.
Departement: School of Engineering
Organisational Unit: Institute of Data Analysis and Process Design (IDP)
Publication type: Conference Paper
DOI : 10.21256/zhaw-1888
ISBN: 978-3-938137-57-4
Appears in Collections:Publikationen School of Engineering

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