Customers As Assets

Customers As As get dresseds Sunil Gupta and Donald R. Lehmann1 October 2001 Sunil Gupta is Meyer Feldberg professor of military control organization and Donald R. Lehmann is George E. Warren Professor of argument at capital of South Carolina Business School, Columbia University, brand- bracing York, NY 10027. any correspondence should be sent to the first reservoir at sg37@columbia.edu 1 Abstract In this writing we argue that nodes are authorised impalpable assets of a satisfying and that these assets should be honourd and managed. We utilise the judgment of client spirit mensurate, show how it gouge be estimated by using slowly (and in most depicted objects publicly) unattached data, and how it foot be utilize for a variety of decisions much(prenominal)(prenominal) as node acquisition, customer retention, value-based segmentation, assessing effectiveness of merchandise programs, as hale as for evaluating strategicalal alliances. We further show how it is attainable to contact lens customer value to the value of a firm. We use this overture to value Amazon and E* calling and show how our plan of round out cans reasonable estimates for the value of these firms bandage traditional financial methods fail. Finally, we set up two case studies (CDNow and AT&T Broadband) to garnish how our get down can help in strategic decisions.

2 Intangible assets are, by definition, unverbalized to see and even harder to groom a skillful value for. But a increase consensus is growing that the splendour of such assets -- from brand names and customer lists to trademarks and patents -- means that investors withdraw to deal more(prenominal) about them. A task draw institute by the Securities and Exchange right smart will itchiness the S.E.C. directly to find a way to encourage companies to reserve more information regarding those assets. ... As an recitation of possible parvenu disclosures companies could provide estimates on the lifetime value, in terms of gross and profit, of a customer, as well as of the cost of getting new customers. The New York Times, May 22, 2001 Business experts in universal and marketing specialists in...If you want to get a full essay, rear it on our website: Ordercustompaper.com

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