Maximizing customer profitability through strategic budget allocation and resource management.
The article discusses how to decide on budgets for gaining and keeping customers, and how to divide these budgets between different ways of contacting customers. It explains how to balance getting new customers and keeping existing ones to make the most profit. The article also talks about the importance of accurately valuing customers by looking at their brand value and referral value. It shows how these values are connected to how long a customer stays with a company and how much they spend.