Customer Valuation as a Driver of Relationship Dissolution Sabrina Helm Heinrich-Heine-Universitaet, Germany

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

As all customers are not created equal (Hallberg & Ogilvy, 1995), the different contributions of customers to a supplier's goals have to be evaluated to grant efficient relationship marketing. Furthermore, a handling system has to be developed for unprofitable customer relationships. This is a hitherto neglected field, as marketing researchers and practitioners are generally rather interested in attaining and keeping customers, not in the ending of relationships. The article aims at integrating the concepts of customer equity and profitability with approaches of relationship dissolution, which have recently emerged in the literature. Different aspects of calculating the value of customer relationships and value-based criteria that focus on monetary and non-monetary components of a customer's value are discussed. In an exploratory study undertaken in the German mechanical engineering industry, the relevance of customer valuation to dissolution decisions is analyzed.

Original languageEnglish (US)
Pages (from-to)77-91
Number of pages15
JournalJournal of Relationship Marketing
Volume3
Issue number4
DOIs
StatePublished - Mar 2 2005
Externally publishedYes

Keywords

  • Customer equity
  • Customer profitability
  • Customer valuation
  • Relationship dissolution
  • Value of customer relationships

ASJC Scopus subject areas

  • Marketing

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