Applications of CRM in B2B and B2C Scenarios Part II

  • V. Kumar
  • Werner Reinartz
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

This chapter attempts to answer the following questions: (1) What should be the total budget for acquisition and retention? (2) How much should be spent on customer acquisition and customer retention? and (3) How should these expenditures be allocated between contact channels? The links between acquisition, retention, and profitability, as well as, balancing acquisition and retention resources are discussed in reference to maximizing customer profitability. In addition to measuring customer profitability and optimal resource allocation, the chapter also highlights the importance of accurately valuing a customer by defining customer brand value and customer referral value. Also discussed are the linking of customer referral value and customer lifetime value, as well as customer brand value and customer lifetime value, and the managerial implications thereof.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • V. Kumar
    • 1
  • Werner Reinartz
    • 2
  1. 1.J. Mack Robinson College of Business, Center for Excellence in Brand and Customer ManagementGeorgia State UniversityAtlantaUSA
  2. 2.Department of Retailing and Customer ManagementUniversity of CologneCologneGermany

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