Customer equity

Lars Groeger, Francis Buttle

Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionary/reference book

Abstract

Customer equity is defined as the sum of the discounted lifetime values of all of the firm's current and potential customers. The customer equity concept recognizes customers as the primary source of both current and future cash-flows and thus as one of the firm's most valuable assets. As such, customer equity is a forward-looking concept that measures the future value of a firm's customer base. Customer equity provides a customer-centered measure of a firm's performance that is considered more significant than past and current sales or market share.
Original languageEnglish
Title of host publicationWiley encyclopedia of management
Subtitle of host publicationVol. 9 : marketing
EditorsCary L Cooper
Place of PublicationChichester, UK
PublisherJohn Wiley & Sons
Volume9
ISBN (Print)9781119972518
DOIs
Publication statusPublished - 2014

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Keywords

  • customer equity
  • customer lifetime value
  • customer centricity

Cite this

Groeger, L., & Buttle, F. (2014). Customer equity. In C. L. Cooper (Ed.), Wiley encyclopedia of management: Vol. 9 : marketing (Vol. 9). Chichester, UK: John Wiley & Sons. https://doi.org/10.1002/9781118785317.weom090068