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Define customer equity and explain how a company can increase it.

  1. Define customer equity and explain how a company can increase it.
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Answer #1

Definition : Customer equity is the sum total of all the lifetime values realized from customers.

More the number of satisfied customers, more is the customer equity. More the customer equity more worth the company has.

A company can increase its customer equity by

1. Providing quality goods and services.

2. By understanding and working according to their customers' tastes and preference.

3. efficient and prompt customer service.

4. By increasing the trust of the customers by various means such as regular feedback, annual reports, advertisements etc.

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