Customers as Revenue-Producing Assets: Maximizing Profits Through Strategic Investments.
The article discusses how companies can estimate the future value of their customers using a metric called customer lifetime value. This helps companies understand how much each customer contributes to their profits. By treating customers as revenue-generating assets, companies can use financial tools like portfolio theory to analyze their value. The uncertainty in future profits from customers adds another layer to their value. The findings suggest that analyzing customer value can guide companies in making better decisions about investing in customers and improving customer services.