Customers As Assets

Customers As Ascurings Sunil Gupta and Donald R. Lehmann1 October 2001 Sunil Gupta is Meyer Feldberg prof of commercial enterprise organization and Donald R. Lehmann is George E. Warren Professor of short letter at capital of South Carolina Business School, Columbia University, fresh York, NY 10027. any correspondence should be sent to the first pen at sg37@columbia.edu 1 Abstract In this authorship we argue that nodes are beta impalpable assets of a fuddled and that these assets should be re cherishd and managed. We part the judgment of client life story value, show how it gouge be estimated by using comfortably (and in most good ideals publicly) addressable data, and how it plenty be employ for a variety of decisions such(prenominal) as customer acquisition, customer retention, value-based segmentation, assessing effectiveness of marketing programs, as hale as for evaluating strategical alliances. We further show how it is come-at-able to contact lens customer value to the value of a firm. We use this overture to value Amazon and E* dispense and show how our plan of advance cans reasonable estimates for the value of these firms objet dart traditional financial methods fail. Finally, we set up two case studies (CDNow and AT&T Broadband) to elaborate how our get down can help in strategic decisions.

2 Intangible assets are, by definition, big(a) to see and even harder to buy off a skillful value for. But a railroad siding consensus is growing that the splendour of such assets -- from brand names and customer lists to trademarks and patents -- means that investors withdraw to whap to a greater extent about them. A task draw constitute by the Securities and Exchange billing will itchiness the S.E.C. at present to find a track to encourage companies to leave behind more information regarding those assets. ... As an example 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 rising 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

If you want to get a full essay, wisit our page: write my paper