Measuring Customer Acquisition Value: A Comprehensive Approach to Customer Equity

Abstract

In information technology era, databases are known as<br />one of the most valuable resources for organizations, especially used<br />in database marketing. Customer Equity is a key concept in Database<br />Marketing which integrates customer acquisition, retention and development.<br />From the perspective of customer equity, customers are the<br />primary source of both current and future cash-flows. Customer equity<br />models emerge as powerful tools to maximize the return on marketing<br />investments, and to guide the allocation of the marketing budget. Because<br />of the importance of customer acquisition as a key dimension<br />of customer equity, this paper focused on the measurement of customer<br />acquisition value. By studying different research papers on customer acquisition<br />and comparing them, we address the gaps especially in quantifying<br />the customer equity and propose some suggestions for more comprehensive<br />assessment of acquisition value.