Measuring customer satisfaction: A platform for calculating, predicting and increasing customer profitability

Abstract

In most industries, companies are facing an ever-increasing level and intensity of competition, as well as a rapid evolution of the market environment. Under these conditions, the analysis and management of customer profitability becomes a key issue in securing the long-term success of the business. This paper proposes a model for calculating, predicting and increasing customer profitability, based on the measurement of customer satisfaction in real market conditions. The methodology brings together, in a coherent framework, a number of concepts that have proliferated in the marketing world, including customer lifetime value, customer segmentation, customer loyalty and data mining. The paper explores also the necessity of designing and implementing effective marketing-mix strategies targeted to the high-value, loyal customers, and the implications of this approach at managerial and organisational level. ABSTRACT FROM AUTHOR Copyright of Journal of Targeting, Measurement & Analysis for Marketing is the property of Palgrave Macmillan Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts)