Customer Value Creating and Customer Profitability Modeling
Application of knowledge in process of business dynamization in Central Europe: the proceedings of the 5th international scientific conference on trade, international business and tourism: 16-17 october 2014, Mojmírovce, Slovak Republic / compiled by: Peter Drábik, Paulína Krnáčová ; editors:
11 Pages Posted: 7 Apr 2015
Date Written: October 26, 2014
Abstract
IT company business systems allow us to generate and store data about customers, use them for solving managerial tasks, decisions within CRM also detect the effectiveness and profitability of marketing and sales. Availability of individual customer data enables the creation of financial performance analyzing methodologies of individual customer. Customer profitability is the basic parameter that assessed customer financial value for the company. Customers have also non-financial value, which we judge from a marketing perspective. In article we discuss the parameters of customer value and evaluation of financial and non-financial customer value. We introduce own customer profitability calculation model designed for distribution channels of brewers. The created model is defined in terms of managing marketing investments at customers. It allows evaluation of analytical data and draw conclusions, offers the possibility to understand, how to set the level of investment within particular marketing and financial segments.
Keywords: customer profitability, customer value, marketing investments, non-financial value of customer
JEL Classification: M31, G32
Suggested Citation: Suggested Citation