Maximize Marketing ROI by Focusing on Customer Equity and Lifetime Value.
The article presents a way for companies to decide on marketing strategies based on financial return. They use a framework that looks at how changes in customer value compare to the cost of making those changes. By analyzing factors like how often customers buy, how much they buy, and if they switch brands, companies can see which strategies will give them the best return on investment. The researchers tested their model using data from the airline industry and found that it can help companies focus on marketing efforts that bring in the most profit.