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My customers are better than yours! On reporting customer equity

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journal contribution
posted on 2010-05-01, 00:00 authored by T Wiesel, Bernd SkieraBernd Skiera, J Villanueva
Managers and investors need information about the performance and future prospects of a firm. If information is relevant in steering a business, it is also relevant for its investors’ investment decisions. Recent initiatives demand information that supplements and complements a firm’s financial statements to bridge the gap between financial statement capabilities and financial reporting objectives. Firms that aim to increase the value of their customer base should manage their business by future-oriented customer metrics. They should also report this information externally because it aligns customer management with corporate goals and investors’ perspectives. The authors propose a means to report customer equity that enables monitoring firms’ performance with respect to their customer assets. Furthermore, they develop a specific model for Netflix and apply it to quarterly reports that cover more than six years.

History

Journal

GfK marketing intelligence review

Volume

2

Issue

1

Pagination

43 - 53

Publisher

De Gruyter Open

Location

Warsaw, Pol.

ISSN

0021-3985

eISSN

1865-5866

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal; C Journal article

Copyright notice

2014, The Authors

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