Customer Engagement Value

This chapter discusses the customer engagement value concept and metric. This is a comprehensive, quantifiable, and forward-looking framework that will enable such measurement and evaluation of the value of a customer based on all aspects of customer behavior, i.e., purchase- and non-purchase-related contributions to the profit of the firm. Accordingly, the CEV framework is managed as a set of four dollar metrics, i.e., customer lifetime value, customer referral value for the business-to-customer markets or business reference value for the business-to-business markets, customer influence value, and customer knowledge value, and one attitudinal metric—customer brand value. This framework provides an effective and comprehensive tool to understand the value of a customer and its impact on the firm’s future profitability.