"Customer Lifetime Value" and "Customer Equity" are two vital concepts each company needs to understand. What implications do they have for building marketing plans and strategy?
-Losing a customer means losing more than a single sale
-Companies must aim high in building customer relationships
-Customer delight creates an emotional relationship with a brand, which keeps customers coming back
-The more loyal the firm's profitable customers, the higher its customer equity
-View customers as assets that need to be managed and maximized
-Butterflies, True Friends, Strangers, Barnacles (page 22)
-Customer Lifetime Value: the value of the entire stream of purchases a customer makes over a lifetime of patronage
-Customer Equity: the total combined customer lifetime values of all of the company's customers