Whether this crisis, or the next one - someday shoppers will be golden for store owners, both in terms of understanding their value and in terms of their profitability. And then they will definitely need the fundamental work of Columbia Business School professors at Columbia University Sunil Gupta and Donald R. Lehmann "Gold Buyers: Are Customers Worth the Money You Spend on Them".
The proposed publication will be a detailed guide for anyone interested in what the cost of the buyer and how to calculate it; how much it costs not only to attract, but also to retain a client (usually shoe companies don’t even think about it); as related in terms of profit, customer retention and company market share.
Of course, company owners understand the value of customers, at least theoretically. However, often they only operate with the number of customers in the customer base and brand recognition, forgetting that with an increase in the number of customers, purely arithmetic the company's revenue per one customer decreases. Sunil Gupta and Donald R. Lehmann analyze ways in which this contradiction can be avoided.
Book authors introduce concept buyer's lifetime profitability. This term refers to the total value of all current and future income received from the buyer. To calculate it, you need to know the pattern of generating income from customers and their coefficient of care over time.
In addition, it explains what the economic, functional and psychological value of the buyer.
Authors write hard enough; to get through the given formulas and calculations, you have to sweat, but believe me, it’s worth it if you want to understand what your company is worth now and what it can count on in the future.
Sunil Gupta, Donald R. Lehmann Gold Buyers: Are customers worth the money you spend on them? Managing Customers as Investments: The Strategic Value of Customers in the Long Run Peter, 2007
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