Combining Customer Metrics - The Customer Value-Customer Equity-Framework

Proceedings of the AMA Relationship Marketing Summit, Buenos Aires, 2007

12 Pages Posted: 11 Feb 2007

See all articles by Tobias Donnevert

Tobias Donnevert

University of Mannheim - Department of Business Administration and Marketing

Maik Hammerschmidt

Mannheim Business School - Department of Marketing

Date Written: 2007

Abstract

The annual web sales loss due to inadequate Web site design is amounted to several billion dollars. Consequently, investigating Web site visitors' needs and targeting the most attractive segments are two fundamental tasks for relationship marketing. This paper integrates the established concepts of benefit segmentation and customer valuation. Based on data of 2,161 website users we conduct a hierarchical cluster analysis and combine the results with equity segmentation. As a result we develop the "user benefit-user equity-framework". Our results show, that there is no dominance of one benefit segment regarding user equity. However, segments with differentiated benefit requirements exhibit significantly higher customer equity than unfocused segments. Thus, a selective strategy is promising.

Keywords: Benefit Segmentation, Customer Equity, Effectiveness and Efficiency, Web Site Design

Suggested Citation

Donnevert, Tobias and Hammerschmidt, Maik, Combining Customer Metrics - The Customer Value-Customer Equity-Framework (2007). Proceedings of the AMA Relationship Marketing Summit, Buenos Aires, 2007 , Available at SSRN: https://ssrn.com/abstract=962239 or http://dx.doi.org/10.2139/ssrn.962239

Tobias Donnevert

University of Mannheim - Department of Business Administration and Marketing ( email )

Germany

Maik Hammerschmidt (Contact Author)

Mannheim Business School - Department of Marketing ( email )

Germany

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