Customer Equity.ppt

8/14/2019 Customer Equity.ppt

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ManagingCustomer Equity


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Customer EquityCustomer Equity

ustomer e!uity is defined as the

total of the discounted lifetime valueof all the firms customers

In other words, a firm is only as good

as its customers think it will "e thene#t time they will do "usiness with

that firm.


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Three Drivers ofThree Drivers of

Customer EquityCustomer Equity

Value $!uity

Brand $!uity

%etention $!uity


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Three Drivers of Customer EquityThree Drivers of Customer Equity

& Value $!uity : the customer's objective

evaluation of the firm offerings& Brand $!uity : the customer's subjective

view of the firm and its offerings

& %etention $!uity : the customer's view of

the strength of the relationship "etween

the customer and the firm.


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Value

$!uity


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Value Equity is the customer'so"(ective assessment of the utility of

a "rand, "ased on perceptions of

what is given up for what is received.


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& #ua$ity:)ow does the customer

evaluate the !uality of the firm's

offerings*

& %ri&e: )ow attractive is the price*

& Convenien&e: )ow convenient is it to

do "usiness with the firm*

+rivers of Value $!uity


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Brand $!uity


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& Brand $!uity is the customer's su"(ective

and intangi"le assessment of the "rand,

a"ove and "eyond its o"(ectivelyperceived value.

& his evaluation is shaped "y the firm's

marketing strategy and tactics and isinfluenced "y the customer through life

e#periences and associations with the

"rand.


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& Builds awareness and attractscustomers

& Build emotional connections with

customers

& %eminds customers to repurchase

he %ole of the Brand inBuilding ustomer $!uity



& customer "rand awareness

& customer attitude toward the "rand

& customer perception of "rand ethics

+rivers of Brand $!uity



%etention

$!uity



& %etention $!uity isthe tendency of thecustomer to stick with the "rand, a"ove

and "eyond the customer's o"(ective

and su"(ective assessments of the"rand.

& It focuses on the relationship "etween

the customer and the' firm, "ased upon

the actions taken "y the firm and "y the

customer to esta"lish, "uild, and

maintain a relationship.



+oes the customer "enefit from relationship

with the firm*

+oes the firm "enefit from its relationship

with the customer* +oes the customer stand to lose if the

relationship is discontinued*

%etention e!uity considers

!uestions such as:


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Source of %eference:

%oland %ust, Valarie 4eithaml, and 2atherine -emon,

Driving Customer Equity : Ho Customer !ifetime Valueis "eshaping Corporate #trategy, 5ree 6ress

Customer Equity.ppt

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