Original language | English |
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Title of host publication | Wiley encyclopedia of management |
Subtitle of host publication | Vol. 9 : marketing |
Editors | Cary L Cooper |
Place of Publication | Chichester, UK |
Publisher | John Wiley & Sons |
Volume | 9 |
ISBN (Print) | 9781119972518 |
DOIs | |
Publication status | Published - 2014 |
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.
Keywords
- customer equity
- customer lifetime value
- customer centricity