Acknowledgments.
1. Customers Are Assets.
Importance of Customers.
The Gap Between Beliefs and Actions.
Bridging the Gap.
The Plan of the Book.
Summary.
2. The Value of a Customer.
Customer Lifetime Value.
Creating Metrics That Matter.
Data Requirements.
Complexity.
Illusion of Precision.
A Simple Approach.
How Reasonable Are Our Assumptions?
Margin.
Retention Rate.
Time Horizon.
Modifications and Extensions.
Margin Growth.
Improving Retention.
Finite Time Horizon.
Summary.
3. Customer-Based Strategy.
Traditional Marketing Strategy.
Value to the Firm vs. Value to the Customer.
The Two Sides of Customer Value.
Key Marketing Metrics.
Traditional Metrics.
Customer Metrics.
Traditional vs. Customer-Based Strategy: A Case Study.
Drivers of Customer Profitability.
Customer Acquisition.
Customer Margin.
Customer Retention.
Summary.
4. Customer-Based Valuation.
Customer Acquisition via Firm Acquisition.
AT&T's Acquisition of TCI and MediaOne.
Acquisitions in the European Utility Industry.
From Customer Value to Firm Value.
The Rise and Fall of Internet Gurus.
The Eyeballs Have It-or Do They?
Customer-Based Valuation.
Drivers of Customer and Firm Value.
Impact of Marketing Actions on Firm Value.
Impact of Marketing and Financial Instruments on Firm Value.
Valuing Netflix.
Summary.
5. Customer-Based Planning.
Step 1: Customer Objectives.
The Case of Evergreen Trust.
The Case of Lipitor.
Step 2: Understanding Sources of Value to Customers.
Economic Value.
Functional Value.
Psychological Value.
Step 3: Designing Marketing Programs.
Marketing Mix-the 4 Ps.
Managing Customer Touchpoints.
Loyalty Programs.
Database Marketing.
Step 4: Customer Metrics for Assessing Effectiveness of Programs.
Choosing and Using the Right Metrics.
Summary.
6. Customer-Based Organization.
Organizational Structure.
The Case of L.L. Bean.
Incentive Systems.
Employee Selection and Training.
Customer-Based Costing.
New Metrics.
Who Needs to Do What: Tasks for Various Parties.
Harrah's Entertainment, Inc.: A Winning Hand in a Dicey Business.
Common Mistakes in Implementing a Customer-Based Strategy.
Concluding Remarks.
Appendix A: Estimating Customer Lifetime Value (CLV).
Appendix B: Impact of Retention on Share and Profits.
Appendix C: Value of Customer Base.
Endnotes.
Index .