January 2005
Beginner to intermediate
224 pages
4h 32m
English
book
Managing Customers as Investments The Strategic Value of Customers in the Long Run
by Sunil Gupta, Donald R. Lehmann
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Chapter 5. CUSTOMER-BASED PLANNING
We have demonstrated why customers are important assets (Chapter 1), how to measure their value as assets (Chapter 2), and how the value of customers can be used to guide marketing strategy decisions (Chapter 3) and to value the firm as a whole (Chapter 4). For example, we detailed how improving customer retention can increase the value of a customer and, in turn, the value of the firm. An obvious question, therefore, is: If the value of customers is so critical, how can a manager improve it? The purpose of this chapter is to discuss a planning process and other specific programs to improve the value of a customer and the value of the firm.
The customer-based planning process consists of four major steps, illustrated ...
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