TY - JOUR
T1 - Costumer profitability practices
T2 - Measurement, concentration and research directions
AU - Mulhern, Francis J.
PY - 1999
Y1 - 1999
N2 - As marketing activities become more precisely targeted to consumers through direct and interactive forms of communication, customer profitability takes on a central role in the development of marketing strategies. This paper provides a conceptual and methodological foundation for measuring customer profitability by generalizing approaches to measuring customer lifetime value in direct marketing for broader target marketing applications. Particular emphasis is placed on the precise specification of the inputs into a profitability analysis and the measures of the degree of concentration of profits among customers. An empirical analysis involving the profitability of customers in a business-to-business marketing context is described, along with research propositions for future work on the determinants of customer profitability.
AB - As marketing activities become more precisely targeted to consumers through direct and interactive forms of communication, customer profitability takes on a central role in the development of marketing strategies. This paper provides a conceptual and methodological foundation for measuring customer profitability by generalizing approaches to measuring customer lifetime value in direct marketing for broader target marketing applications. Particular emphasis is placed on the precise specification of the inputs into a profitability analysis and the measures of the degree of concentration of profits among customers. An empirical analysis involving the profitability of customers in a business-to-business marketing context is described, along with research propositions for future work on the determinants of customer profitability.
UR - http://www.scopus.com/inward/record.url?scp=0002581728&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0002581728&partnerID=8YFLogxK
U2 - 10.1002/(SICI)1520-6653(199924)13:1<25::AID-DIR3>3.0.CO;2-L
DO - 10.1002/(SICI)1520-6653(199924)13:1<25::AID-DIR3>3.0.CO;2-L
M3 - Article
AN - SCOPUS:0002581728
SN - 1094-9968
VL - 13
SP - 25
EP - 40
JO - Journal of Interactive Marketing
JF - Journal of Interactive Marketing
IS - 1
ER -