For most companies, their clients are their most valuable asset: it is very expensive to capture them, and, if they are retained, they will generate profits for the rest of their relationship with the firm. In this sense, Client Value is a measure which assesses the sum of future discounted benefits of a client, net of marketing costs. As such, we can say that a manager’s activities should be aimed at improving the client acquisition process, and at generating the value of the existing client base. In one way or another, the objective of all commercial decisions is to capture, retain and increase a company’s client base.
Villanueva Galobart, Julián; Nueno Iniesta, José Luis; wrote this tech note published in IESE Publishing, February 08th, 2006
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