“ The total combined customer life time value of all the company ’ s customers. ”
This is a better measures of performance than current sale and market share.
Building Right Relationship With Right Customer
Customers are assets and need to be managed and maximized, but not all customer or even not all loyal customer
Some loyal customer can be unprofitable
Some disloyal customer can be profitable
Company can classify customer according to the potential profitability and loyalty and manage relationship accordingly.
Building Right Relationship With Right Customer High profitability Low profitability profitability Loyalty Short term customer Long term customer Butterflies Good fit between company’s offering and customer’s need: high profit potential True friends Good fit between Company’s offering and Customer need: highest profit potential Strangers Little fit between Company’s offering and Customer’s need: lowest Profit potential Barnacles limited fit between Company’s offering and Customer need: low profit potential