Customer equity is the total lifetime value of a firm's customers and considers customers as financial assets rather than just current sales. It has three main components: value equity based on customer evaluations, brand equity based on customer opinions, and relationship equity based on customer-firm links. Measuring customer equity is important for companies as it acts as a marketing system, focuses on reinforcing customer relationships, and provides a better measure of performance than current sales. Higher customer equity leads to higher revenues and market value for a company.

1. Customer
Equity
By Monika

2. INTRODUCTION
● Customer equity is the total combined customer lifetime values( CLV) of a
firm.
● The basic assumption of customer equity is that customers considered as
financial asset.
● Customer equity measure firm’s performance than current sales or market
shares.
● Customer equity suggests the future.

3. COMPONENTS OF CUSTOMER EQUITY
 Value equity: It concentrates on customer’s objective evaluation of the
serviceableness of a brand.
 Brand equity: It concentrates on customer’s opinion about a brand.
 Relationship equity: It concentrates on the link between customer and the firm.

4. IMPORTANCE OF CUSTOMER EQUITY
● It acts as a marketing system for organization and companies
● Customer equity focuses on customer as a whole and uses the interactions to reinforce
relationships.
● Customer equity is a measure that is quite important to companies.

5. Conclusion
● Customer equity is the pulse of organizational health.
● It provides a full picture of company’s performance.
● Higher the customer equity, higher the revenue a company receives and
more valuable it becomes in market.