An increasing number of companies are considering their relationships with customers as financial assets.Such firms measure success by calculating the value of their ________.
A)CRM
B)VALS™
C)brand personality
D)customer equity
E)positioning

Question

Quizplus · Accepted Answer

Customer equity refers to the total value of a company's customer base. It takes into account the lifetime value of customers, as well as their potential to refer new business and provide valuable feedback. Companies with high customer equity are able to generate more revenue with lower acquisition costs and enjoy greater long-term success.

An Increasing Number of Companies Are Considering Their Relationships with Customers