What drives customer equity

Abstract

A strategy based on customer equity allows firms to trade off between customer value, brand equity, and customer relationship management. A new strategic framework, the Customer Equity Diagnostic, reveals the key drivers increasing the firm's customer equity. This new framework will enable managers to determine what is most important to the customer and to begin to identify the firm's critical strengths and hidden vulnerabilities. Customer equity is a new approach to marketing and corporate strategy the finally puts the customer, and more important, strategies that grow the value of the customer, at the heart of the organization.