Wednesday, May 21, 2008

Customer Equity

from HBR May 2008 pg 118, Customer Equity is the present value of the anticipated lifetime revenue the company's customers will generate, minus their acquisition & retention costs

3 measurable components of Customer Equity: (i) customer acquisition, (ii) customer retention, (iii) share of wallet.

Brand Equity? probably similar in nature with Customer Equity. It consider the (i) brand creation/acquisition, (ii) brand sustainability/growth & (iii) brand performance/revenue.

From another source:
Brand Value = Brand Equity + Price + Product Features.


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