Just like how the worth of a company can be measured by the value of its stock, it is now possible to quantify the value of a company using a new metric, Customer Equity. At Hansa Cequity, we have been working with companies to increase their customer equity.

Using tools and techniques in data management, analytics, contact management, digital and social media marketing, we have been able to unearth intelligence and insights into the way customers think, feel and act.

Customer AnalyticsDelivering campaigns around insights to increase site traffic
Intelligence Driven MarketingManaging customer needs and expectations
Social Analytics & Customer EngagementContinuing the conversation with the customer
For the love of footballDelivering predictive product offerings tailored to customer interests

What is Customer Equity?

These are times of momentous changes. People empowered with real-time technologies are changing the way to search, identify and engage with products, services and companies. For companies too, the availability of ubiquitous technology and communication tools means that they are able to understand people and their needs in real-time. Writing in their seminal book, Customer Equity: Building and Managing Relationships as Valuable Assets, Robert C. Blattberg, Gary Getz, Jacquelyn S. Thomas, argue that customer equity management is now possible because of intersecting advances in four areas: affordable information technology; low-cost communications; sophisticated statistical modelling; flexible fulfilment. Information-based targeted marketing is becoming more efficient and effective than blanketed mass marketing. As a result, mass marketing strategies that achieve targeted profits by counting on more-profitable customers to subsidize less profitable ones will fail as the more attractive customers are stolen away by competitors' targeted acquisition efforts. As customers gain near-perfect information on their alternatives, switching barriers are dropping dramatically. Companies that use the deluge of available data on customer purchase behavior are acquiring new customers, retaining existing customers, and cross-selling more effectively than those who do not, and can link their insights with cost data to do so efficiently as well. Companies can no longer depend on orderly vertical channel systems to control customers' buying behaviors. In a world characterized by these five forces, companies that understand the asset value of each customer, and that tailor their marketing efforts (and their costs) to acquire and sustain the highest-value assets, will trump less-focused mass marketers.

Brand Equity vs Customer Equity

Marketing
Activity
Brand
Activity
Customer
Activity
Product & Service Quality Create strong customer preference Create high customer retention rates
Advertising Create brand image & position Create customer affinity
Promotion Deplete brand equality Sell more products to the installed customer base
Segmentation Customer characteristics and benefit segmentation Behaviourial segmentation
Channels of Distribution Multistage distribution system Direct distribution to customer
Customer Service Enhance brand image Create customer affinity

Source:Customer Equity: Building and Managing Relationships As Valuable Assets. Robert C. Blattberg, Gary Getz & Jacquelyn S. Thomas | Harvard Business School Press.