How to measure customer value and its relationship with shareholder value in a business-to-business market

Bermejo, Gustavo and Rodríguez Monroy, Carlos (2010). How to measure customer value and its relationship with shareholder value in a business-to-business market. "Intangible Capital", v. 6 (n. 2); pp. 142-161. ISSN 1697-9818. https://doi.org/10.3926/ic.2010.v6n2.p142-161.

Description

Title: How to measure customer value and its relationship with shareholder value in a business-to-business market
Author/s:
  • Bermejo, Gustavo
  • Rodríguez Monroy, Carlos
Item Type: Article
Título de Revista/Publicación: Intangible Capital
Date: 2010
ISSN: 1697-9818
Volume: 6
Subjects:
Freetext Keywords: customer equity; life time value; customer relationship management; shareholder value
Faculty: E.T.S.I. Industriales (UPM)
Department: Ingeniería de Organización, Administración de Empresas y Estadística
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

Intangible assets are difficult to measure, but nowadays the value of the shares of firms in the stock exchange market contains a high percentage of intangible capital and customers are one of the main intangible assets thatshould be evaluated. This paperpresents and discusses some tools to measure the value of customers. But first, it is mandatory to define and clarify the relationships among the concepts of Customer Equity (CE), Life Time Value (LTV) and Customer Relationship Management (CRM). LTV is the best financial outcome to measure customer value, so the paper reviews the literature on some mathematical models to calculate LTV. We propose an equation for LTV in order to apply it in a business-to-business market, and an analysis of the influence factors involved in it is made, focusing especially on the link between LTV and shareholder value. Finally, we propose as future lines of research, the relational equity approach as the perfect complement to the customer equity analysis and a way to estimate LTV for actual cases of publicly traded firms using published information.

More information

Item ID: 65742
DC Identifier: http://oa.upm.es/65742/
OAI Identifier: oai:oa.upm.es:65742
DOI: 10.3926/ic.2010.v6n2.p142-161
Official URL: https://www.intangiblecapital.org/index.php/ic/article/view/139
Deposited by: Memoria Investigacion
Deposited on: 16 Dec 2020 15:12
Last Modified: 16 Dec 2020 15:12
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