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Marketing Review St. Gallen
Published in: Marketing Review St. Gallen 3/2011

01-06-2011 | Return on Marketing

Return on Customer – How Marketing Actually Creates Value

Authors: Ph. D. Don Peppers, Ph. D. Martha Rogers

Published in: Marketing Review St. Gallen | Issue 3/2011

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Excerpt

With investment ratios such as ROI and ROMI a firm can measure the efficiency with which its capital is employed to generate value. But a marketer needs to know how efficiently the firm creates value from the customers and prospects available to it, and Return on Customer (ROC) does this, by making three assumptions: (1) customers create all value, (2) the value created is both short-term and long-term in nature, and (3) customers are a scarce productive resource. …
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Literature
Braff, A./Passmore, W.J./Simpson, M. (2003): Going the Distance with Telecom Customers, McKinsey Quarterly, 4, pp. 83-93.
Gupta, S./Lehmann, D.R. (2005): Managing Customers as Investments: The Strategic Value of Customers in the Long Run, Philadelphia.
Peppers, D./Rogers, M. (2005): Return on Customer: Creating Maximum Value From Your Scarcest Resource, New York.
Peppers, D./Rogers, M. (2006): Return on Customer: A New Metric of Value Creation – ROI By Itself is Not Good Enough, in: Journal of Direct, Data, and Digital Marketing Practice, 7, 4, pp. 318-331.CrossRef
Peppers, D./Rogers, M. (2008): Rules To Break & Laws To Follow: How Your Business Can Beat The Crisis of Short-Termism, New York.
Metadata
Title
Return on Customer – How Marketing Actually Creates Value
Authors
Ph. D. Don Peppers
Ph. D. Martha Rogers
Publication date
01-06-2011
Publisher
Gabler Verlag
Published in
Marketing Review St. Gallen / Issue 3/2011
Print ISSN: 1865-6544
Electronic ISSN: 1865-7516
DOI
https://doi.org/10.1007/s11621-011-0031-3

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