Many companies have invested in systems such as enterprise resource planning (ERP) and customer relationship management (CRM) with the aim of managing their customers better. To do this well, however, a company must first understand customer profitability. This paper proposes a customer portfolio method of achieving this. Using a database of 130,000 customers from an internet service provider (ISP), this method demonstrates significant gains and returns on investments, by going beyond customer loyalty and instead advocating a proactive way of managing different customer groups based on their profitability.
|Number of pages||7|
|Journal||Journal of Database Marketing and Customer Strategy Management|
|Publication status||Published - 2005|