How to measure customer value and its relationship with shareholder value in a business-to-business market

Intangible assets are difficult to measure, but nowadays the value of the shares of firms in the stock exchange market contains a high percentage of intangible capital and customers are one of the main intangible assets which should be evaluated. This paper presents and discusses some tools to measu...

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Detalhes bibliográficos
Autores: Bermejo, Gustavo, Rodríguez Monroy, Carlos
Formato: artículo
Fecha de publicación:2010
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2099/9363
Acesso em linha:https://hdl.handle.net/2099/9363
Access Level:acceso abierto
Palavra-chave:Management information systems
Customer services
Customer relations--Management
Shareholder value
Customer equity
Life time value
Sistemes d'informació per a la gestió
Serveis d'atenció al client
Relacions amb els clients
Àrees temàtiques de la UPC::Economia i organització d'empreses::Gestió del coneixement
Descrição
Resumo:Intangible assets are difficult to measure, but nowadays the value of the shares of firms in the stock exchange market contains a high percentage of intangible capital and customers are one of the main intangible assets which should be evaluated. This paper presents and discusses some tools to measure the value of customers. But first, it is mandatory to define and clarify the relationships among the concepts of Customer Equity (CE), Life Time Value (LTV) and Customer Relationship Management (CRM). LTV is the best financial outcome to measure customer value, so the paper reviews the literature on some mathematical models to calculate LTV. We propose an equation for LTV in order to apply it in a business-to-business market, and an analysis of the influence factors involved in it is made, focusing especially in the link between LTV and shareholder value. Finally, we propose as future lines of research, the relational equity approach as the perfect complement to the customer equity analysis and a way to estimate LTV for actual cases of publicly traded firms using published information.