Combining Customer Metrics - The Customer Value-Customer Equity-Framework
Proceedings of the AMA Relationship Marketing Summit, Buenos Aires, 2007
12 Pages Posted: 11 Feb 2007
Date Written: 2007
Abstract
The annual web sales loss due to inadequate Web site design is amounted to several billion dollars. Consequently, investigating Web site visitors' needs and targeting the most attractive segments are two fundamental tasks for relationship marketing. This paper integrates the established concepts of benefit segmentation and customer valuation. Based on data of 2,161 website users we conduct a hierarchical cluster analysis and combine the results with equity segmentation. As a result we develop the "user benefit-user equity-framework". Our results show, that there is no dominance of one benefit segment regarding user equity. However, segments with differentiated benefit requirements exhibit significantly higher customer equity than unfocused segments. Thus, a selective strategy is promising.
Keywords: Benefit Segmentation, Customer Equity, Effectiveness and Efficiency, Web Site Design
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