The Theoretical Underpinnings of Customer Asset Management

Abstract

textabstractMost research in customer asset management has focused\non specific aspects of the value of the customer to\nthe company. The purpose of this article is to propose\nan integrated framework ? called CUSAMS -- that\nenables service organizations to comprehensively\nassess the value of their "customer assets" and to\nunderstand the influence of marketing instruments on\nthem. The foundation of the CUSAMS framework is a\ncareful specification of key customer behaviors that\nreflect the length, depth and breadth of the\ncustomer-service provider relationship: duration,\nusage, and cross-buying. This framework is the starting\npoint for a set of theoretically based propositions\nregarding how marketing instruments influence customer\nbehavior within the relationship, thereby influencing\ncustomer value. Then, building on prior research, we\nprovide two empirical examples of how the CUSAMS\nframework can be used to conduct financial analyses of\nthe return on investment from marketing expenditures\ndesigned to influence behavior and increase the value\nof the customer base. The framework and propositions\nprovide the impetus for a research agenda that\nidentifies critical issues in customer asset management