Measuring Customer Value

Posted 09-Oct-2005 05:45 PM
HI,

I am working on my I.L.P. for Master's Degree in management. I like to know the formula on knowing the customers value to a company.

Can you help me?

Paul

Graham Hill
Guru
Member

Posted 10-Oct-2005 01:43 AM
Paul

This is too complicated to answer simply at the level that you should require for your Masters.

I suggest that you seek an answer in the following:

"Managing Customers as Investments: The Strategic Value of Customers in the Long Run"
by Sunil Gupta, Donald Lehmann

"Customer Relationship Management : A Databased Approach"
by V. Kumar, Werner Reinartz

"Customer Equity",
by Robert C. Blattberg, Gary Getz, Jacquelyn S. Thomas

"Return on Customer"
by Don Peppers, Martha Rodgers

"Driving Customer Equity : How Customer Lifetime Value is Reshaping Corporate Strategy"
by Roland Rust, Valarie Zeithaml, Katherine Lemon

and by reading the many papers of Werner Reinartz available at http://www.reinartz.com/research/PublishedWork.html.

Graham Hill
Independent CRM Consultant

Posted 13-Oct-2005 01:48 PM
Hello Paul:

I would suggest you visit the website of best selling author Fred Wiersema's Customer Strategy Group. You will find a page on customer value propositions and a checklist here
http://www.customerstrategy.com/Value_Proposition.html

All the best

Eric Fraterman
eric.fraterman@mulberryhouseconsulting.com

Gavin Watson
Member

Posted 13-Oct-2005 06:28 PM
Good day Paul.

I think you may find the website of an Australian company called CustomerConnect interesting. They are involved in helping companies set up their Customer Value proposition in line with evaluations for CRM solutions.

The MD lectures on CRM and Customer Value at a reputable Australian MBA program.

Regards
Gavin