Customer valuation as a foundation for growth
Managing Service Quality: An International Journal
ISSN: 0960-4529
Article publication date: 1 February 1997
Abstract
Customers differ widely in the long‐term value they represent to a company, and the “best” customers are often many times more valuable than the average ones. Cites four customer value components: acquisition cost, revenue stream, cost stream and length of relationship. Argues that by understanding and managing lifetime customer value, a company not only allocates resources to its customers more effectively, but also becomes better able to focus on developing long‐term customer relationships. Examines ways to calculate lifetime customer value and use it as the basis for strategy development.
Keywords
Citation
McDougall, D., Wyner, G. and Vazdauskas, D. (1997), "Customer valuation as a foundation for growth", Managing Service Quality: An International Journal, Vol. 7 No. 1, pp. 5-11. https://doi.org/10.1108/09604529710158157
Publisher
:MCB UP Ltd
Copyright © 1997, Company