Managing  Customer Equity
Customer Equity Customer equity  is defined as  the total of the discounted lifetime value of all the firm’s customers In ...
Three Drivers of Customer Equity Value Equity Brand Equity Retention Equity
Three Drivers of Customer Equity <ul><li>Value Equity  : the customer's  objective  evaluation of the firm offerings </li>...
Value  Equity
Value Equity  is the customer's objective assessment of the utility of a brand, based on perceptions of what is given up f...
<ul><li>Quality  :How does the customer evaluate the quality of the firm's offerings?  </li></ul><ul><li>Price  : How attr...
Brand Equity
<ul><li>Brand Equity  is the customer's subjective and intangible assessment of the brand, above and beyond its objectivel...
<ul><li>customer brand awareness </li></ul><ul><li>customer attitude toward the brand </li></ul><ul><li>customer perceptio...
Retention  Equity
<ul><li>Retention Equity is   the tendency of the customer to stick with the brand, above and beyond the customer's object...
<ul><li>Does the customer benefit from relationship with the firm?  </li></ul><ul><li>Does the firm benefit from its relat...
<ul><li>Loyalty programs (frequent purchase/reward programs)  </li></ul><ul><li>Special recognition and treatment programs...
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Final presentation on customer equity (sana makhani)

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Final presentation on customer equity (sana makhani)

  1. 1. Managing Customer Equity
  2. 2. Customer Equity Customer equity is defined as the total of the discounted lifetime value of all the firm’s customers In other words, a firm is only as good as its customers think it will be the next time they will do business with that firm.
  3. 3. Three Drivers of Customer Equity Value Equity Brand Equity Retention Equity
  4. 4. Three Drivers of Customer Equity <ul><li>Value Equity : the customer's objective evaluation of the firm offerings </li></ul><ul><li>Brand Equity : the customer's subjective view of the firm and its offerings </li></ul><ul><li>Retention Equity : the customer's view of the strength of the relationship between the customer and the firm. </li></ul>
  5. 5. Value Equity
  6. 6. Value Equity is the customer's objective assessment of the utility of a brand, based on perceptions of what is given up for what is received.
  7. 7. <ul><li>Quality :How does the customer evaluate the quality of the firm's offerings? </li></ul><ul><li>Price : How attractive is the price? </li></ul><ul><li>Convenience : How convenient is it to do business with the firm? </li></ul>Drivers of Value Equity
  8. 8. Brand Equity
  9. 9. <ul><li>Brand Equity is the customer's subjective and intangible assessment of the brand, above and beyond its objectively perceived value. </li></ul><ul><li>This evaluation is shaped by the firm's marketing strategy and tactics and is influenced by the customer through life experiences and associations with the brand. </li></ul>
  10. 10. <ul><li>customer brand awareness </li></ul><ul><li>customer attitude toward the brand </li></ul><ul><li>customer perception of brand ethics </li></ul>Drivers of Brand Equity
  11. 11. Retention Equity
  12. 12. <ul><li>Retention Equity is the tendency of the customer to stick with the brand, above and beyond the customer's objective and subjective assessments of the brand. </li></ul><ul><li>It focuses on the relationship between the customer and the' firm, based upon the actions taken by the firm and by the customer to establish, build, and maintain a relationship. </li></ul>
  13. 13. <ul><li>Does the customer benefit from relationship with the firm? </li></ul><ul><li>Does the firm benefit from its relationship with the customer? </li></ul><ul><li>Does the customer stand to lose if the relationship is discontinued? </li></ul>Retention equity considers questions such as:
  14. 14. <ul><li>Loyalty programs (frequent purchase/reward programs) </li></ul><ul><li>Special recognition and treatment programs </li></ul><ul><li>Affinity (emotional connection) programs </li></ul><ul><li>Community programs </li></ul><ul><li>Knowledge-building programs (learning relationship or structural bonds) </li></ul>Drivers of Retention Equity
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