Seven Barriers to Customer Equity Management

David Bell · John Deighton · Werner Reinartz · Roland T. Rust · Gordon S. Swartz

174 citations0/0 files storedJournal of Service Research

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Customer Service Quality and Loyalty Marketing and Advertising Strategies Customer churn and segmentation

Abstract

The article reviews the evolution from brand-centered marketing to customer-centered marketing and the beginnings of a focus on viewing the customer as an asset. It illustrates the practice by describing the use of a loyalty program to identify and respond to high-potential customers in the market for business-class hotels. Next, it considers seven challenges that impede wider adoption of customer equity management and concludes with a schematic model of customer-centered marketing management.

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References

1998Market-Based Assets and Shareholder Value: A Framework for Analysis 1998A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction 2000On the Profitability of Long-Life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for Marketing 2003The Impact of Customer Relationship Characteristics on Profitable Lifetime Duration 1998Customer lifetime value: Marketing models and applications 1988Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond 2010Manage Marketing by the Customer Equity Test 1987Counting Your Customers: Who-Are They and What Will They Do Next?

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2010A process-oriented perspective on customer relationship management and organizational performance: An empirical investigation 2002Managing and Measuring Relational Equity in the Network Economy 2008Customer equity management as formative second-order construct 2010Customer relationship management for hotels in Hong Kong 2007Managing Customer Relationships

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