Customer Equity

is the expected or projection of the total worth or what future revenues will be realized from a company’s customer base. In terms of predicting competition in marketing projections a company with higher customer equity is more valuable than one without it.

Generally, value equity is what a customer may assess is the total worth of a product or service, and directly determines customer equity. Both of these can be determined by direct communication in the form of surveys and responses gleaned from social media content or the numbers of people who participate in a viral marketing media campaign. Companies that engage in consistent contact or communication with their customers also benefit from higher retention of customers. Building trust and value have proven effective even when a similar product or service may be less expensive- but retain their customers because of the company’s commitment to ultimate consumer satisfaction with both product sales and service after the fact.

Other factors that improve customer equity are:

• Building and maintaining the value or desirability of the brand
• A commitment to overall company goodwill toward customers
• Improving brand popularity with social media interaction