Incorporating Customer Perspective Boosts Retention and Financial Value in Business
The article discusses how including the customer's perspective in customer portfolio analysis is important for understanding the relationship. By comparing relationship value with warmth and supplier performance from the customer's view, companies can better assess customer retention and equity. The directional policy matrix is a useful tool that considers customer attractiveness to the supplier and vice versa. Including the customer perspective helps predict customer retention based on relationship warmth, which impacts customer equity.