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- W2761563021 abstract "Customer value refers to the economic value of the customer's relationship with the firm. This study approaches the topic of customer value for measuring, managing, and maximizing customer contributions by proposing a customer valuation theory (CVT) based on economic principles that conceptualizes the generation of value from customers to firms. The author reviews the established economic theories for valuing investor assets (e.g., stocks) and draws a comparison to valuing customer contributions. Furthermore, the author recognizes the differences in the guiding principles between valuing stocks and valuing customers in proposing CVT. Using CVT, the author discusses the concept of customer lifetime value (CLV) as the metric that can provide a reliable, forward-looking estimate of direct customer value. In addition, economic models to estimate CLV, ways to manage CLV using portfolio management principles, and strategies to maximize CLV are discussed in detail. The author extends the customer value concept by discussing ways that a customer can add value to the firm indirectly through incentivized referrals, social media influence, and feedback. Finally, the benefits of CVT to multiple constituencies are offered." @default.
- W2761563021 created "2017-10-20" @default.
- W2761563021 creator A5040585833 @default.
- W2761563021 date "2018-01-01" @default.
- W2761563021 modified "2023-10-01" @default.
- W2761563021 title "A Theory of Customer Valuation: Concepts, Metrics, Strategy, and Implementation" @default.
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- W2761563021 doi "https://doi.org/10.1509/jm.17.0208" @default.
- W2761563021 hasPublicationYear "2018" @default.
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