Science_Customer_Valuation_Metrics

CUSTOMER VALUATION METRICS

CUSTOMER VALUATION METRICS
by Ditty SEPT 2015


ABSTRACT
This article compares customer valuation methods; Customer Lifetime Value (CLV) and Customer Engagement Value (CEV) and their implementation process. Traditional valuation is done on the basis of customer financial transactions. More recent research proposes to incorporate non-financial behaviours of customers into the customer valuation equation.  

PRACTICAL RELEVANCE
Calculating and incorporating non-financial behaviours can be complex and recourse consuming process. This paper can help companies in determining the appropriate customer value measure; it proposes that in a more connected, however not always implying more involved customers, customer involvement may support companies in choosing the most suitable customer valuation method. Furthermore future research in this area is proposed.

Keywords
Customer Valuation, Customer Lifetime Value, Customer Engagement Value, Customer Management. 

Reviewer 
Prof.dr.ir. Michael Corbey

Hope you enjoy reading! 

All the best,

Ditty

Ditty Menon, The Data Artists, Ditty

About the Author: Ditty Menon

Founder of The Data Artists, The Data Artists Music and Nederland Wordt Duurzaam. 


Erasmus University Rotterdam Alumni with 12 years of experience in Data Science / Analytics / Digital. Passionate about incorparating data into all aspects of life & (more recent) using data for a sustainable world.


Radom facts:

Starts his day with a flat white or caffe latte and the financial times podcast.

Broke his glasses when walking into a lamppost while thinking of a coding issue

Loves Serendipity
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