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Please use this identifier to cite or link to this item: http://dspace.lib.cranfield.ac.uk/handle/1826/3163

Document Type: Article
Title: Making customers pay: measuring and managing customer risk and returns
Authors: Ryals, Lynette
Issue Date: 2003
Citation: Lynette Ryals, Making customers pay: measuring and managing customer risk and returns. Journal of Strategic Marketing, Volume 11, Number 3, September 2003, pp165-175
Abstract: CRM (Customer Relationship Management) builds on the Relationship Marketing idea that lifetime relationships with customers are more profitable than short-term transactional relationships. However, subsequent work on the profitability of customers has shown that some customers are very unprofitable. This leaves managers with a problem: how to focus their relationship management efforts to maximise shareholder value. A suggested theoretical approach is to view the customer base as an investment portfolio. This paper uses the portfolio management model of risk and return to explore the measurement of returns and of the risk of the customer. Some implications for CRM managers are outlined.
URI: http://dx.doi.org/10.1080/0965254032000133476
Appears in Collections:Staff publications - School of Management

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