The authors' Customer Equity Framework yields powerful insights that will help any business increase the value of its customer base. Rust, Zeithaml, and Lemon introduce the three drivers of customer equity -- Value Equity, Brand Equity, and Retention Equity -- and explain in clear, nontechnical language how managers can base their strategies on one or a combination of these drivers. The authors demonstrate in this breakthrough book how managers can build and employ competitive metrics that reveal their company's Customer Equity relative to their competitors. Based on these metrics, they show how managers can determine which drivers are most important in their industry, how they can make efficient strategic trade-offs between expenditures on these drivers, and how to project a financial return from these expenditures. The final section devotes two chapters to the Customer Pyramid, an approach that segments customers based on their long-term profitability, and an especially important chapter examines the Internet as the ultimate Customer Equity tool. Here the authors show how companies such as Intuit.com, Schwab.com, and Priceline.com have used more than one or all three drivers to increase Customer Equity.
In this age of one-to-one marketing, understanding how to drive Customer Equity is central to the success of any firm. In particular, Driving Customer Equity will be essential reading for any marketing manager and, for that matter, any manager concerned with growing the value of the firm's customer base.
The customer lifetime value (CLV) concept is extensively changing the way today’s business is managed. A student or practitioner needs to understand CLV to best gain the competitive edge in business. Customer Lifetime Value: Reshaping the Way We Manage to Maximize Profits is a text that shows in detail how managers and researchers can best use CLV to a business’s advantage. This valuable resource explores various practical approaches to the measurement and management of customer value that focus on maximizing profitability and growth. Leading thinkers discuss how to leverage CLV in all aspects of business, including customer management, employee management, and firm valuation. Everyone needing to prepare a business for success in the future should read this book.
Most books on the subject only cover separate components of CLV and are typically limited to targeting for direct response marketing. Customer Lifetime Value presents all components, cohesively putting them together into an understandable functioning whole. This source prepares forward-looking managers and researchers for the inevitable change and provides strategies to gain and sustain the competitive advantage.
Topics in Customer Lifetime Value include:
leveraging the customer database to maximize CLV
using CLV in customer segmentation
using CLV in firm valuation
setting up an organization designed to maximize CLV
Customer Lifetime Value: Reshaping the Way We Manage to Maximize Profits is essential reading for practitioners in the areas of customer satisfaction, loyalty, CRM, and direct response, as well as academics in the service marketing area.
Dr. Woodside leads off with his 20-step process model and review of the scientific and applied literature to show how advertising works. He answers the question of why top-of-mind awareness measures of advertising effectiveness are so valuable, and then uses detailed, numerical examples to illustrate the powerful tool of benefit-to-brand retrieval. He links profit-and-loss analysis to a linkage advertising monitoring program, then discusses the net profit impact of each advertisement in each medium. His report of a field study demonstrates that net profit is the big difference between image and linkage advertising. From there he moves to the long interview and its application to voice-of-the customer research, ways to value different customer segments, and how to monitor linkage advertising fulfillment strategies. Dr. Woodside's book will be an important contribution to our understanding of how advertising is done, and how it can be done better.
It has become common wisdom that we live in a postindustrial information society in which data and calculation underlie wealth. But now that information is as routinely produced as industrial or agricultural goods, businesses are discovering that they best achieve competitive advantage by producing what consumers most dearly seek-personal meaning. The 21st-century economy produces just that: not merely information, but evocative images; not just commodities, but meaning-laden icons. As Sternberg shows, foods now appeal through their sensuality and nostalgia; houses and stores draw customers through their exoticism; people sell their labor through the deliberate performance of the self for the market; and tourist destinations offer up carefully crafted thematic experiences. Whereas farms, factories, and information processors once stood at the core of the economy, now movie studios do, producing the product valued above all, meaningful content, from which downstream firms acquire the themes that animate desire.
Now that meaning pervades production, Sternberg argues, modes of inquiry once reserved for the humanities make sense in the study of the economy. Drawing on art history and aesthetics, he introduces iconography as a mode of cultural analysis adapted to the study of commercial production. Through comparative studies of diverse economic sectors, ranging from food processing to tourism, Sternberg carries out an iconographic analysis of the new economy. This is a provocative study for scholars, students, and professionals dealing with marketing and consumer research, culture and media studies, socio-economics, and economic geography.