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Customer Value and Customer Selection

In: Business Relationship Management and Marketing

Author

Listed:
  • Michael Kleinaltenkamp

    (Freie Universität Berlin)

Abstract

The fact that the establishment and cultivation of business relationships require substantial resources, raises the question whether those investments are compensated by the earnings achieved. To answer this question, it is necessary to determine the value of single customers and to make decisions on how to select and shape the relationship with them. The chapter thus presents and explains economic-quantitative and non-monetary criteria to determine customer value. Moreover, it discusses the multi-dimensional approaches used in this field like customer contribution margin, customer lifetime value, customer portfolios etc. Finally, it shows how such customer evaluation models can be applied and what the basic principles of customer value controlling are.

Suggested Citation

  • Michael Kleinaltenkamp, 2015. "Customer Value and Customer Selection," Springer Texts in Business and Economics, in: Michael Kleinaltenkamp & Wulff Plinke & Ingmar Geiger (ed.), Business Relationship Management and Marketing, edition 127, chapter 4, pages 85-108, Springer.
    • Handle: RePEc:spr:sptchp:978-3-662-43856-5_4
    DOI: 10.1007/978-3-662-43856-5_4
    as

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