Buradasınız

Anasayfa » Content

How to measure customer value and its relationship with shareholder value in a business-to-business market

Journal Name:

  • Intangible Capital

Publication Year:

  • 2010
DOI: 
doi:10.3926/ic.2010.v6n2.p142-161

Key Words:

Author NameUniversity of Author
Abstract (2. Language): 
Intangible assets are difficult to measure, but nowadays the value of the shares of firms in the stock exchange market contains a high percentage of intangible capital and customers are one of the main intangible assets that should be evaluated. This paper presents and discusses some tools to measure the value of customers. But first, it is mandatory to define and clarify the relationships among the concepts of Customer Equity (CE), Life Time Value (LTV) and Customer Relationship Management (CRM). LTV is the best financial outcome to measure customer value, so the paper reviews the literature on some mathematical models to calculate LTV. We propose an equation for LTV in order to apply it in a business-to-business market, and an analysis of the influence factors involved in it is made, focusing especially on the link between LTV and shareholder value. Finally, we propose as future lines of research, the relational equity approach as the perfect complement to the customer equity analysis and a way to estimate LTV for actual cases of publicly traded firms using published information.
Bookmark/Search this post with
FULL TEXT (PDF): 
PDF icon arastrmx_141134_6_pp_142-161.pdf
  • 2
142-161
  • English

REFERENCES

References: 

BAXTER R. (2009). Reflective and formative metrics of relationship value: A commentary essay. Journal of Business Research, 62(1): 1370-1377. doi:10.1016/j.jbusres.2008.12.004
BERGER, P.D.; NASR, N.I. (1998). Customer lifetime value: Marketing models and applications. Journal of Interactive Marketing, 12: 17-30. doi:10.1002/(SICI)1520-6653(199824)12:1<17::AID-DIR3>3.0.CO;2-K
BLATTBERG, R.C.; DEIGHTON, J. (1996). Manage Marketing by the customer equity test. Harvard Business Review, 74(4): 136-44.
BLATTBERG, R.C.; THOMAS, J.S. (2000). Valuing, analyzing and managing the marketing function using customer equity principles. Unpublished manuscript, Northwestern University, Evanston, II.
Intangible Capital, 2010 – 6(2):142-161 – ISSN: 1697-9818
doi:10.3926/ic.2010.v6n2.p142-161
How to measure customer value and its relationship with shareholder value… 159
G. Bermejo – C. R. Monroy
DWYER, R.F. (1997). Customer lifetime value valuation to support Marketing decision making. Journal of Direct Marketing, 11(4): 6-13. doi:10.1002/(SICI)1522-7138(199723)11:4<6::AID-DIR3>3.0.CO;2-T
HOGAN J.E. (2001). Expected Relationship Value. Industrial Marketing Management, 30(1): 339-351. doi:10.1016/S0019-8501(01)00152-3
HWANG H.; JUNG T.; SUH E. (2004). An LTV model and customer segmentation based on customer value: a case study on the wireless telecommunication industry. Expert Systems with Applications, 26(2): 181-188. doi:10.1016/S0957-4174(03)00133-7
JACK S.L. (2010). Approaches to studying networks: Implications and outcomes. Journal of Business Venturing, 25(1): 120-137. doi:10.1016/j.jbusvent.2008.10.010
JACOBS F.A.; JOHNSTON W.; KOTCHETOVA N. (2001). Customer Profitability. Industrial Marketing Management, 30: 353-363. doi:10.1016/S0019-8501(01)00155-9
JAIN D.; SINGH S.S. (2002). Customer Lifetime Value research in Marketing: A review and future directions. Journal of Interactive Marketing, 16(2): 34-36. doi:10.1002/dir.10032
KIM J.; SUH E.; HWANG H. (2003). A Model for evaluating the effectiveness of CRM using the Balanced Scorecard. Journal of Interactive Marketing, 17(2): 5-19. doi:10.1002/dir.10051
KIM S.; JUNG T.; SUH E.; HWANG H. (2006). Customer segmentation and strategy development based on customer lifetime value: A case study. Expert Systems with Applications, 31(1): 101-107. doi:10.1016/j.eswa.2005.09.004
LECHNER C.; DOWLING M.; WELPE I. (2006). Firm networks and firm development: the role of the relational mix. Journal of Business Venturing, 21(4): 514-540. doi:10.1016/j.jbusvent.2005.02.004
LEMON, K.N.; RUST R.T.; ZEITHAML, V.A (2001). What drives customer equity? Marketing Management, 10: 20-25. doi:10.1016/S0019-8501(02)00225-0
Intangible Capital, 2010 – 6(2):142-161 – ISSN: 1697-9818
doi:10.3926/ic.2010.v6n2.p142-161
How to measure customer value and its relationship with shareholder value… 160
G. Bermejo – C. R. Monroy
LINDGREEN A.; WYNSTRA F. (2005). Value in business markets: What do we know? Where are we going? Industrial Marketing Management, 34(7): 732-748. doi:10.1016/j.indmarman.2006.04.005
MÖLLER K.; TÖRRÖNEN P. (2003). Business suppliers´value creation potential. A capability-based analysis. Industrial Marketing Management, 32(2): 109-118. doi:10.1016/S0019-8501(02)00225-0
MÖLLER, K (2006). Role of competences in creating customer value: A value-creation logic approach. Industrial Marketing Management, 35(8): 913-924. doi:10.1016/j.indmarman.2006.04.005
MURUAIS, J.; RODRÍGUEZ MONROY, C. (2009). Hacia un enfoque de KAM eficaz. Harvard-Deusto Business Review, 91: 58-64.
PETERSEN J.A.; MCALISTER L.; REIBSTEIN D.J.; WINER R.S.; KUMAR V.; ATKINSON G. (2009). Choosing the right metrics to maximize profitability and shareholder value. Journal of Retailing, 85(1): 95-111. doi:10.1016/j.jretai.2008.11.004
PFEIFER, P.E.; CARRAWAY, R.L. (2000). Modeling customer relationships as Markov Chains. Journal of Interactive Marketing, 14(2): 43-55. doi:10.1002/(SICI)1520-6653(200021)14:2<43::AID-DIR4>3.0.CO;2-H
REINARTZ, W.J.; KRAFFT, M.; HOYER, W.D. (2004). The customer relationship management process: Its measurement and impact on performance. Journal of Marketing Research, XLI: 293-305. doi:10.1509/jmkr.41.3.293.35991
REINARTZ, W.J.; KUMAR, V. (2000). On the profitability of long lifetime customers: An empirical investigation and implications for Marketing. Journal of Marketing, 64: 17-35. doi:10.1509/jmkg.64.4.17.18077
RICHARDS K.A.; JONES E. (2008). Customer relationship management: finding value drivers. Industrial Marketing Management, 37(2): 120-130. doi:10.1016/j.indmarman.2006.08.005
RIGBY, D.K.; REICHHELD, F.F.; SCHEFTER, P. (2002). Avoid the four perils of CRM. Harvard Business Review, 80(2): 101-109.
Intangible Capital, 2010 – 6(2):142-161 – ISSN: 1697-9818
doi:10.3926/ic.2010.v6n2.p142-161
How to measure customer value and its relationship with shareholder value… 161
G. Bermejo – C. R. Monroy
RUST R.T.; LEMON K.N.; ZEITHAML V.A. (2000). Driving customer equity: how customer lifetime value is reshaping corporate strategy. New York: Free Press.
RYALS L.; KNOX S. (2007). Measuring and managing customer relationship risk in business markets. Industrial Marketing Management, 36(6): 823-833. doi:10.1016/j.indmarman.2006.06.017
SAWHNEY, M.; ZABIN, J. (2002). Managing and measuring relational equity in the network economy. Journal of the Academy of Marketing Science, 30(4): 313-332. doi:10.1177/009207002236908
SCHMITTLEIN, D.C.; MORRISON, D.G.; COLOMBO, R. (1987). Counting Your Customers: Who are they and what will they do next. Management Science, 33: 1-24. doi:10.1287/mnsc.33.1.1
SEGGIE S.H.; CAVUSGIL E.; PHELAN S.E. (2007). Measurement of return on marketing investment: A conceptual framework and the future of marketing metrics. Industrial Marketing Management, 36(6): 834-841. doi:10.1016/j.indmarman.2006.11.001
STAHL H.K.; MATZLER K.; HINTERHUBER H.H. (2003). Linking customer lifetime value with shareholder value. Industrial Marketing Management, 32(4): 267-279. doi:10.1016/S0019-8501(02)00188-8
WALTER A.; RITTER T.; GEMÜNDEN H. (2001). Value creation in Buyer-Seller relationships. Industrial Marketing Management, 30(4): 365-377. doi:10.1016/S0019-8501(01)00156-0

Thank you for copying data from http://www.arastirmax.com