Maximizing Customer Lifetime Value: The Key to Corporate Success.
Companies are shifting focus to customers, and a new model called the Customer Equity Framework helps maximize the value of a company's customer base. The framework identifies three drivers of customer equity - Value Equity, Brand Equity, and Retention Equity - which can be used to shape strategies. By using competitive metrics, managers can compare their Customer Equity to competitors and make strategic decisions. The Customer Pyramid segments customers based on profitability, and the Internet is highlighted as a key tool for increasing Customer Equity. Understanding and driving Customer Equity is crucial for business success in today's market.