Unlocking customer accounting’s potential: a service-dominant logic approach

Abstract

Purpose

This paper aims to problematise critiques raised against customer accounting’s numeric focus, which risks controlling and simplifying customers rather than facilitating closer engagement. This analysis suggests ways to better account for what it is that customers buy, why they do so and how to better serve them.

Design/methodology/approach

Service-dominant logic (SDL) is a marketing ideology that recognises the active role of customers in value creation. Seven customer accounting techniques are appraised against SDL principles to identify strengths and shortfalls in logic and application.

Findings

Customer accounting techniques align with SDL’s beneficiary-oriented and relational view of customers. Weaker alignment is found regarding a focus on outputs rather than outcomes, silence about the customer’s role in co-creating value and failure to recognise contextual circumstances.

Research limitations/implications

The analysis uses prototypical descriptions of customer accounting techniques. Actual applications could offset weaknesses or raise other shortfalls.

Practical implications

For each area of SDL, the authors suggest avenues for integrating SDL into customer accounting using related literature and building on concepts within customer accounting techniques.

Originality/value

SDL contrasts with the traditional, goods-dominant logic that underscores much of accounting. SDL is used to critically and constructively evaluate customer accounting techniques.

Citation

Ng, F. and Wood, Z. (2018), "Unlocking customer accounting’s potential: a service-dominant logic approach", Pacific Accounting Review, Vol. 30 No. 3, pp. 371-386. https://doi.org/10.1108/PAR-07-2016-0071