Making customers pay: measuring and managing customer risk and returns

Date published

2003-09-01T00:00:00Z

Free to read from

Supervisor/s

Journal Title

Journal ISSN

Volume Title

Publisher

Taylor & Francis

Department

Type

Article

ISSN

0965-254X

Format

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.

Description

Software Description

Software Language

Github

Keywords

Customer Relationship Management (CRM), customer profitability, customer risk, customer portfolio

DOI

Rights

Relationships

Relationships

Supplements

Funder/s