Key Value Chain: From Customer Value to Company Value

Author: Gupta, Lehman
Publisher:
Publish Date: 2006-01-01
Features: Customers are the most important source of company profit and value. Many companies are continuously increasing their investment in customers. However, companies focus more on the value they create for customers rather than the value customers bring to the company. The reason is that, traditionally, measuring customer value has required a significant amount of internal company data and complex models. As a result, companies often use traditional metrics like market share to measure performance, which may lead to incorrect assessments. This book provides readers with a simple yet effective method to measure customer value. This method allows for an approximate yet accurate estimation of customer value without requiring detailed company data, and subsequently derives company value, helping to make strategic and tactical decisions such as mergers and acquisitions.