{"id":150,"date":"2021-05-19T17:28:10","date_gmt":"2021-05-19T17:28:10","guid":{"rendered":"http:\/\/vkclv.resourz.net\/?page_id=150"},"modified":"2021-05-31T11:02:03","modified_gmt":"2021-05-31T11:02:03","slug":"create-portfolio-of-customers","status":"publish","type":"page","link":"https:\/\/www.vkclv.com\/index.php\/create-portfolio-of-customers\/","title":{"rendered":"Create Portfolio of Customers"},"content":{"rendered":"\t\t
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CUSTOMER VALUATION THEORY & FIRM VALUE<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Create Portfolio of Customers<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The maximization of direct economic value contribution hinges on the construction of a customer portfolio. How is this done? By drawing on the fundamentals of modern portfolio theory \u2013 but with some marketing-specific adjustments. Modern portfolio theory seeks to eliminate unique risk by diversifying the stock portfolio by means of the constant buying and selling of stocks. But because customers cannot be acquired and divested at will, it is necessary for firms to constantly \u2018rebalance\u2019 its allocation of resources, such that enough resources are being leveraged toward the most profitable customers, as determined by CLV. There is a linear relationship between investment in stocks and subsequent returns, but that connection does not necessarily hold for customer investments \u2013 allocation of resources is the most effective strategy for firms.\u00a0Recent studies have identified ways of optimizing resource allocation at the individual customer level to maximize overall profitability (Kumar<\/strong>\u00a0et al. 2014; Luo and\u00a0Kumar<\/strong>\u00a02013; Petersen and\u00a0Kumar<\/strong>\u00a02015).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Connecting CVT & Firm Value<\/a><\/p>

Customer Lifetime Value<\/a><\/p>

Augmented Customer Value<\/a><\/p>

Identify Indirect Customer Value Contribution<\/a><\/p>

Identify Value Segments & Augmented Customer Value<\/a><\/p>

Maximize Indirect Value Contribution<\/a><\/p>

Relationship\u00a0Strategy<\/a><\/p>

Interaction\u00a0Strategy<\/a><\/p>

Engagement\u00a0Strategy<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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References<\/strong>
Kumar, V.<\/strong>, Xi Zhang, and Anita Luo (2014), “Modeling Customer Opt-In and Opt-Out in a Permission-Based Marketing Context,”\u00a0Journal of Marketing Research<\/em>, 51 (4), 403-19.
Luo, Anita, and\u00a0V. Kumar<\/strong>\u00a0(2013), “Recovering Hidden Buyer\u2013Seller Relationship States to Measure the Return on Marketing Investment in Business-to-Business Markets,”\u00a0Journal of Marketing Research<\/em>, 50 (1), 143-60.
Petersen, J Andrew, and\u00a0V. Kumar<\/strong>\u00a0(2015), “Perceived Risk, Product Returns, and Optimal Resource Allocation: Evidence from a Field Experiment,”\u00a0Journal of Marketing Research<\/em>, 52 (2), 268-85.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\tIdentify Indirect Customer Value Contribution<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\tIdentify Value Segments & Augmented Customer Value<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

CUSTOMER VALUATION THEORY & FIRM VALUE Create Portfolio of Customers The maximization of direct economic value contribution hinges on the construction of a customer portfolio. How is this done? By drawing on the fundamentals of modern portfolio theory \u2013 but with some marketing-specific adjustments. Modern portfolio theory seeks to eliminate unique risk by diversifying the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-150","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages\/150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/comments?post=150"}],"version-history":[{"count":7,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages\/150\/revisions"}],"predecessor-version":[{"id":2263,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages\/150\/revisions\/2263"}],"wp:attachment":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/media?parent=150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}