Return on Customer: Creating Maximum Value From Your Scarcest Resource

Martha Rogers



Internationally acclaimed business gurus and best-selling authors Don Peppers and Martha Rogers kicked off the CRM revolution and changed the landscape of business competition with their classic bestseller, The One to One Future. Now, in Return on Customer, they have written an even more revolutionary book, redefining the very concept of what it means to be “profitable” as a business.

Virtually every manager agrees that a company’s most vital asset is its customer base – the lifetime values of all its current and future customers. Yet when companies track their financial results, they rarely take into account any change in the value of this critical asset. As a result, managers remain blind to one of the most significant factors driving genuine, lasting business success, and instead become preoccupied with achieving short-term financial goals.

Return on Customer is the first book to focus on how firms create value, not just by driving current profits, but by preserving and increasing customer lifetime value. In a powerful blend of theory and practice, Peppers and Rogers demonstrate how to create shareholder value more efficiently by concentrating on Return on Customer(SM), a revolutionary business metric focused on a company’s scarcest resource – customers. By paying close attention to Return on Customer, companies can improve their profits while still conserving and replenishing long-term enterprise value.

Relying on their years of experience working with many of the world’s leading companies, Peppers and Rogers take readers far beyond marketing, sales, and service. Return on Customer will revolutionize how companies think about their basic competitive strategy, product development efforts, and even the issue of business ethics and corporate governance.

Return on Customer(SM) is a registered service mark of Peppers & Rogers Group, a division of Carlson Marketing Group, Inc.

“To remain competitive, you must figure out how to keep your customers longer, grow them into bigger customers, make them more profitable, and serve them more efficiently. And you want more of them.

Unfortunately, the financial metrics you learned in business school are not easily adapted to account for the value companies generate from this scarce resource, with the right balance between current-period sales and customer lifetime value. But striking that balance is necessary if you want to know whether you’re better off investing in customer acquisition, or in product development, or opening new stores, or plant efficiency, or better qualified personnel, or more service, or cost reduction. While you may believe in your heart that a particular decision creates shareholder value, there’s no financial metric currently available to tell you how much shareholder value you actually created, or even whether you created any at all.

But Return on Customer can help you. Return on Customer is a breakthrough financial metric that can quantify the actual shareholder value you are creating (or, possibly, destroying) with your various business actions and initiatives.”

—from Return on Customer

What will you learn from this book

  1. Customer Lifetime Value (CLV): Understanding and maximizing the lifetime value of a customer is often a central theme in customer-centric strategies.

  2. Personalization: Tailoring products, services, and communications to individual customer needs and preferences can enhance the overall customer experience.

  3. Relationship Building: Building strong, long-term relationships with customers is essential for sustainable business success.

  4. Customer Retention: The book might emphasize the importance of retaining existing customers as they can be more profitable than acquiring new ones.

  5. Customer Feedback and Engagement: Actively seeking and incorporating customer feedback is crucial for continuous improvement and maintaining a strong connection with the customer base.

  6. Cross-Selling and Upselling: Maximizing revenue opportunities by strategically cross-selling and upselling to existing customers is often a key strategy.

  7. Customer Advocacy: Encouraging customers to become advocates for the brand can lead to positive word-of-mouth and referrals.

  8. Data-Driven Decision-Making: Leveraging customer data for informed decision-making helps in tailoring strategies to meet specific customer needs.

  9. Seamless Customer Experience: Ensuring a seamless and consistent customer experience across all touchpoints is crucial for building trust and satisfaction.

  10. Employee Engagement: Recognizing the impact of engaged and customer-focused employees on overall customer satisfaction and loyalty.

Language English
ISBN-10 0385510306
ISBN-13 9780385510301
No of pages 296
Font Size Medium
Book Publisher Crown Business
Published Date 21 Jun 2005

About Author

Author : Martha Rogers

4 Books

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