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Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value

Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value. Author: V. Kumar, Lerzan Aksoy , Bas Donkers , Rajkumar Venkatesan , Thorsten Wiesel and Sebastian Tillmanns Resource :Journal of Service Research, 2010 Teacher– 苑守慈 Presenter – Allan Wu. Agenda.

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Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value

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  1. Undervalued or Overvalued Customers:Capturing Total Customer EngagementValue Author: V. Kumar, LerzanAksoy, Bas Donkers, RajkumarVenkatesan, Thorsten Wiesel and Sebastian Tillmanns Resource :Journal of Service Research,2010 Teacher– 苑守慈 Presenter – Allan Wu

  2. Agenda • Introduction • Conceptualizing CEV • CEV Components • Metrics for the CEV Components • Research Propositions • Maximizing CEV • Conclusion

  3. Introduction • Engagement is acustomer’s behavioral manifestation toward a brand or firmand that it results from motivational drivers. • CEV offers a more complete evaluation of how much anindividual customer is contributing to the firm in multipleways.

  4. Conceptualizing CEV

  5. CEVComponents • CLVcustomer lifetime value • Customer purchasing behavior, whether it be repeat purchases or additional purchases through up-selling and cross-selling • CRVcustomer referral value • Customer referral behavior as it relates to the acquisition of new customers through a firm initiated and incentivized formal referral programs • CIVcustomer influencer value • Customer influencer behavior through customers’ influence on other acquired customers as well as on prospects • CKVcustomer knowledge value • Customer knowledge behavior via feedback provided to the firm for ideas for innovations and improvements, and contributing to knowledge development

  6. Conceptualizing CEV

  7. Metrics for the CEV Components

  8. Conceptualizing CEV

  9. Research Propositions

  10. Maximizing CEV

  11. Maximizing CEV • At the most basic level, a customer’s CEV can be maximized when each of its four components (CLV, CRV,CIV, and CKV) is individually maximized. • While CLV can be increased by more purchases by the customer over time, • CRV increases with current customers referring new customers. • Encouraging and strengthening WOM communication is important to build CIV • In addition to utilizing the Internet, firms should take into account the variety of motivations customers have for providing feedback.

  12. Conclusion • Although creating an environment where customers aremore engaged with the company may require initial investment, it has the potential to generate higher profits in the longrun through the creation of CEV.

  13. Q&A

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