Customer equity

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Customer Equity is the Net Present Value of a customer from the perspective of a supplier. It can - and should - also include customer goodwill that is normally not expressed in financial terms, eg a customer's level of loyalty and advocacy.

[edit] Literature

• Rust, Roland T.; Lemon, Katherine N.; Zeithaml, Valarie A.: Return on Marketing: Using Customer Equity to Focus Marketing Strategy, Journal of Marketing 68(1), 2004, 109-127

[edit] See also

• Customer service
• Customer
• Customer relationship management
• Customer value proposition