Driving Customer Equity by Roland T Rust
How Customer Lifetime Value Is Reshaping Corporate Strategy

No critic rating

Waiting for minimum critic reviews

See Reader Rating

Synopsis

In their efforts to become more customer-focused, companies everywhere find themselves entangled in outmoded systems, metrics, and strategies rooted in their product-centered view of the world. Now, to ease this shift to a customer focus, marketing strategy experts Roland T. Rust, Valarie A. Zeithaml, and Katherine N. Lemon have created a dynamic new model they call "Customer Equity," a strategic framework designed to maximize every firm's most important asset, the total lifetime value of its customer base.
The authors' Customer Equity Framework yields powerful insights that will help any business increase the value of its customer base. Rust, Zeithaml, and Lemon introduce the three drivers of customer equity -- Value Equity, Brand Equity, and Retention Equity -- and explain in clear, nontechnical language how managers can base their strategies on one or a combination of these drivers. The authors demonstrate in this breakthrough book how managers can build and employ competitive metrics that reveal their company's Customer Equity relative to their competitors. Based on these metrics, they show how managers can determine which drivers are most important in their industry, how they can make efficient strategic trade-offs between expenditures on these drivers, and how to project a financial return from these expenditures. The final section devotes two chapters to the Customer Pyramid, an approach that segments customers based on their long-term profitability, and an especially important chapter examines the Internet as the ultimate Customer Equity tool. Here the authors show how companies such as Intuit.com, Schwab.com, and Priceline.com have used more than one or all three drivers to increase Customer Equity.
In this age of one-to-one marketing, understanding how to drive Customer Equity is central to the success of any firm. In particular, Driving Customer Equity will be essential reading for any marketing manager and, for that matter, any manager concerned with growing the value of the firm's customer base.
 

About Roland T Rust

See more books from this Author
Roland T. Rust is the Madison S. Wigginton Professor of Management and Director of the Center for Service Marketing at the Owen Graduate School of Management of Vanderbilt University. Valarie A. Zeithaml is associate professor at the Fuqua School of Business at Duke University. The recipient of three distinguished teaching awards, Dr. Zeithaml has written articles for the "Journal of Consumer Research, Journal of Marketing, " and the "Journal of Retailing.
 
Published February 21, 2001 by Free Press. 304 pages
Genres: Business & Economics. Non-fiction

Reader Rating for Driving Customer Equity
72%

An aggregated and normalized score based on 17 user ratings from iDreamBooks & iTunes


Rate this book!

Add Review
×