Customer Confidential: Untold Stories of Earned Growth Ep. 213: Allison Hartsoe | Why Customer-Centric Isn't Enough: Measuring Customer Equity
Mar 30, 2023
Allison Hartsoe, managing director at EY and author of The Age of Customer Equity, dives deep into customer lifetime value and its significance in revenue forecasting. She discusses the need for a nuanced understanding of customer behavior to drive growth. By employing a maturity model, Hartsoe highlights how to assess CLV accurately while integrating digital data. She also reveals the challenges organizations face in implementing customer equity strategies and emphasizes the importance of emotional connections in leveraging customer insights.
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Calculating CLV
- Calculate Customer Lifetime Value (CLV) using a predictive model.
- Essential data includes customer ID, transaction date, amount, and purchased items.
Customer Equity Sweet Spot
- Customer equity represents a point where company success and customer satisfaction intersect.
- This involves attracting the right customers and consistently delivering value.
Building Algorithmic Leadership
- Start with small, focused experiments to demonstrate value and gain buy-in.
- This iterative approach allows you to build momentum towards becoming an algorithmic leader.
