Valuing Customer Engagement: Strategies to Measure and Maximize Profitability

Foreword by David J. Reibstein
Foreword by J. Patrick Bewley
Preface
Acknowledgments
Praise for Valuing Customer Engagement
Contents
List of Figures
List of Tables
1 Overview of Customer Engagement
	Engaging with Your Customers
	Understanding the Need to Value Customer Engagement
	Valuing Customer Engagement—Under the Hood
	Notes and References
2 Customer Valuation Theory
	Let’s Begin with the Stock Market…
	What Is the Value of My Customers?
	The Customer Valuation Theory
	Valuing Customers as Assets
	Managing Customer Portfolios
	Nurturing Profitable Customers
	How Does the Use of CVT Benefit Businesses?
	Notes and References
3 Customer Engagement Value
	A Firm’s Approach to Customer Engagement
	Conceptualizing CEV: An Integrated Framework
	Customer Brand Value (CBV)
	Customer Lifetime Value (CLV)
	Customer Referral Value (CRV)
	Business Reference Value (BRV)
	Customer Influence Value (CIV)
	Customer Knowledge Value (CKV)
	How Does It Help Organizations?
	Notes and References
4 Brand: “What Do You Think of Me?”
	Connecting Brands with Customers
	Need to Measure Brand Value
	Aggregate Versus Individual Brand Value
	The CBV Framework
		Brand Knowledge
		Brand Attitude
		Brand Behavior Intention
		Brand Behavior
		Predicted Behavior Outcomes
	Measuring CBV
	Maximizing CBV
	Notes and References
5 How Much Are Your Customers Worth?
	Introduction: Why Measure Customer Value?
	Traditional Measures of Customer Value: Backward-Looking Metrics
		Recency–Frequency–Monetary (RFM) Value
		Share of Wallet
		Past Customer Value
		Tenure/Duration
	Defining CLV: The Forward-Looking Metric
	Measuring CLV
		How Can CLV Be Computed?
	Drivers of CLV
	Maximizing CLV to Ensure Profitable Customer Engagement
		Customer Selection
		Managing Loyalty and Profitability Simultaneously
		Optimal Allocation of Resources
		Cross-Buying Behavior
		Pitching the Right Product to the Right Customer at the Right Time
		Preventing Customer Attrition
		Product Returns
		Managing Multichannel Shoppers
		Linking Investments in Branding to Customer Profitability
		Acquiring Profitable Customers
		Interaction Orientation
		Viral and Referral Marketing Strategies
		Future of Customer Management
	CLV—Extensions and Applications
		Salesperson Future Value
		Global CLV
		Computing CLV for Consumer Packaged Goods
	Looking Beyond CLV
	Notes and References
6 When Brand Value Meets Customer Value
	How to Link the Brand Value to Customer Value
		How the Various Components of CBV Are Linked
		How CBV and CLV Are Linked
	The Role of Brand Communication in Linking Brand and Customer Value
	Strategic Implementation of Managing Brands and Customers
		Telecommunication
		Financial Services
		Retailer
		Brand Awareness and Image
		Brand Trust and Affect
		Brand Purchase Intention
		Brand Loyalty
		Premium Price Behavior
		Brand Advocacy
	Notes and References
7 What’s the Word Out There?
	Introduction: Valuing the Word that Goes Around
	Conceptual Background
	WOM Marketing
		Customer Referrals and Referral Programs
		The Value of Referred Customers
		Referral Intentions
	Defining CRV
	Measuring CRV
		Calculating CRV—An Example
	Maximizing CRV
	Linking CRV and CLV
	Implementing CRV in Business
		Campaign Preparation
		Campaign Description
		Campaign Results
	Linking CBV and CRV
	The Value of References in the B2B Setting
	Measuring BRV
		Calculating BRV—An Example
	Drivers of BRV
		Drivers of BRV in a Telecommunications Firm and a Financial Services Firm
	Maximizing BRV
		Impact of BRV on CLV
		Impact of BRV on Customer Acquisition
	Linking BRV and CBV
	From Referrals to Influence
	Notes and References
8 Hey, Have You Heard About This?
	Introduction: Social Media
	Why Social Media Can Be Powerful
	Successes and Failures in Marketing Through Social Media
	Defining Customer Influence Effect (CIE) and Customer Influence Value (CIV)
	A Seven-Step Framework for Creating Successful Social Media Marketing Campaigns
	Implementation of the Seven-Step Framework
	Implementation of the Seven-Step Process in Hokeypokey
	Measuring CIV: Calculating the Effect and Value of Social Media Influence
	The Campaign Results and Implications
	Computation of CIV
		How Can This Be Computed?
	Implications of CIV for Social Media Marketers
	Encouraging and Maximizing CIV
	Launching Social Coupons
	Avoiding the Pitfalls in Social Coupon Launches
		What Should the Firm Do to Improve Profits?
		Redesigning the Social Coupon Strategy
	Interrelationships
		CIV, CRV, and CLV
		The Relationship Between CLV and CIV
		The Relationship Between CIV and CBV
		The Relationship Between CRV and CIV
	Social Media Marketing (SMM): Version 2.0
		Regulated Social Media Marketing
	A Sample Framework for Implementation
	The Dark Side of Social Media Marketing
	Notes and References
9 We Need Your Help!
	Introduction: The Value of Customer Knowledge
	Defining Customer Knowledge Value (CKV)
	Measuring CKV
	CKV Measurement Strategy
		Customer Feedback Channel Identification
		Data Collection
		Rating Normalization
		Data Analysis: Feedback Response Strategy
		Feedback Response Strategy Design and Implementation
	Impact of Social Media in CKV
	Encouraging and Maximizing CKV
	Applying CKV in Business
	Interrelationships
		Linking CKV and CLV
		Linking CKV and CBV
		Linking CKV and CIV
		Linking CKV and CRV
		Linking CKV and BRV
	Notes and References
10 Engaging with Customers in a Multi-dimensional World
	Managing the CEV Framework
		Customer Brand Value
		Customer Lifetime Value
		Customer Referral Value/Business Reference Value
		Customer Influence Value
		Customer Knowledge Value
		A Note on Managing the Framework
	Organizational Challenges
		Loyalty
		Customer Feedback
		Data Availability
	Data Management
		Data Integrity
		Data Accessibility
		Data Security
		Disaster Recovery
		Change Management
	Recent Developments in Valuing Customer Engagement
		On the Theory Behind Customer Engagement
		On Customer Engagement in a Service Setting
		On Customer Engagement in a Global Context
		On Establishing Employee Engagement
	Conclusion
	Notes and References
Index