scholarly journals Moving from Customer Lifetime Value to Customer Equity

2013 ◽  
Vol 44 (4) ◽  
pp. 47-64 ◽  
Author(s):  
A. M. Estrella-Ramón ◽  
M. Sánchez-Pérez ◽  
G. Swinnen ◽  
K. VanHoof

Throughout this research the customer valuation trend in marketing is going to be reviewed, emphasizing Customer Lifetime Value and Customer Equity measures. The main theoretical contributions in the development and evolution of the Customer Lifetime Value concept are analysed. Customer Lifetime Value is also differentiated from Customer Equity and Customer Profitability analysis to estimate customer value in terms of firm profitability. Customer Lifetime Value and Customer Equity concepts are formally defined. Additionally, a classification of a set of published researches into Customer Lifetime Value and/or Customer Equity is developed. This classification has been posited according to several criteria that serves as a guide to key requirements for developing these types of models. Finally,several conclusions, suggestions and future research streams are highlighted.


2014 ◽  
Vol 2014 (6) ◽  
pp. 80-96
Author(s):  
Yuriy Sozonov

The article outlines the results of the research on application of customer equity evaluation methods. In the study customer equity of Russian B2B-company was evaluated on the basis of the following metrics: customer lifetime value (CLV), past customer value (PCV), integrated index of customer equity (RFM). The evaluation is complemented with practical recommendations on metrics application for customer equity maximization. On the basis of the conducted research, toolkit of customer equity evaluation is developed. It involves a set of metrics, indicators for evaluation and data sources. This toolkit could be potentially adapted and employed by Russian B2B-companies.


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