Managing Customers Profitably

Ryals, Lynette
April 2011
Credit Control;2011, Vol. 32 Issue 3/4, p37
Trade Publication
The article presents a reprint of the article "Managing Customers Profitably," by Lynette Ryals, which appeared in the publication "Management Focus." It discusses three rules to manage the profitability of customers namely understanding customers' profitability, managing customer portfolio, and acquiring more profitable customers. It says that customer profitability analysis, customer lifetime value, and customer equity are the main ways to calculate the profitability of customers.


Related Articles

  • Customer Metrics and Their Impact on Financial Performance. Gupta, Sunil; Zeithaml, Valarie // Marketing Science;Nov/Dec2006, Vol. 25 Issue 6, p718 

    The need to understand the relationships among customer metrics and profitability has never been more critical. These relationships are pivotal to tracking and justifying firms' marketing expenditures, which have come under increasing pressure. The objective of this paper is to integrate...

  • A marketing view of the customer value: Customer lifetime value and customer equity. Estrella-Ramón, A. M.; Sánchez-Pérez, M.; Swinnen, G.; VanHoof, K. // South African Journal of Business Management;Dec2013, Vol. 44 Issue 4, p47 

    Throughout this research the customer valuation trend in marketing is going to be reviewed, emphasizing Customer Lifetime Value and Customer Equity measures. The main theoretical contributions in the development and evolution of the Customer Lifetime Value concept are analysed. Customer Lifetime...

  • Editorial. Weinberg, Bruce D; Breur, Tom F // Journal of Marketing Analytics;Sep2015, Vol. 3 Issue 3, p109 

    An introduction to the journal is presented in which the editors discusses various topics in the issue including customer lifetime valuation, maximizing market share, and customer segmentation.

  • The Impact of Marketing-Induced Versus Word-of-Mouth Customer Acquisition on Customer Equity Growth. Villanueva, Julian; Yoo, Shijin; Hanssens, Dominique M // Journal of Marketing Research (JMR);Feb2008, Vol. 45 Issue 1, p48 

    Companies can acquire customers through costly but fast-acting marketing investments or through slower but cheaper word-of-mouth processes. Their long-term success depends critically on the contribution of each acquired customer to overall customer equity. The authors propose and test an...

  • Opinion: Marketing Society - Put a value on customers. Holder, Derek // Marketing (00253650);4/5/2006, p103 

    The article presents the author's opinion on measuring customer value and making it a part of a board's agenda. The author reflects on customers being one of the worst managed of all intangible assets. He states that brand equity and customer lifetime value calculations can be used to evaluate...

  • Customer lifetime valuation using real options analysis. Koosha, Hamidreza; Albadvi, Amir // Journal of Marketing Analytics;Sep2015, Vol. 3 Issue 3, p122 

    As the concept of Customer Lifetime Value (CLV) is gaining a growing acceptance to achieve superior efficiency and effectiveness of marketing plans, development of more accurate models to measure CLV is becoming an important issue. Most CLV models cannot consider the management flexibility in...

  • PERFORM A CLIENT PROFITABILITY ANALYSIS. S. D. // Stitches Magazine;May2012, Vol. 26 Issue 4, p35 

    The article offers information on the significance of conducting a basic profitability analysis for each customer, mentioning that calculating the average amount spend by a customer to a business annually can be performed to determine the lifetime value of a customer.

  • Current Issues and Challenges of Estimating Lifetime Value of 'Free Customer' in Malaysia: An Un-Structured Interview Approach with Industrial Expertises. Bohari, Abdul Manaf; Rainis, Ruslan; Marimuthu, Malliga // International Business & Management;2011, Vol. 3 Issue 1, p167 

    Traditionally, the world wide businesses has being applied customer lifetime value (CLV) model for estimating their profitability by counting contribution of customer toward the business. The strategic used of CLV model is for understand and analyzing the lifetime values of each customer...

  • ANÁLISE DO VALOR DO CLIENTE (LIFETIME VALUE): UM ESTUDO AMBIENTADO EM UMA OPERADORA DE PLANOS DE SAÚDE. Milan, Gabriel Sperandio; Prestes, Adriano Reci; Munhoz, Luis Paolo Soares // Base;2010, Vol. 7 Issue 2, p123 

    This article presents a study undertaken in a health care plans operator with regional activities focused on business segment, and its aim is analyzing the implementation of the calculation method of customer equity (Lifetime Value) proposed by Rust et al. (2001). The study is based on concepts...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics