The creative use of “Customer Equity” (CE) can be of interest to SMEs in the services industry.CE concerns:
- “Customer Acquisition”: Which customer or prospect should be acquired for present profit and future retention?
- “Customer Retention”: How can customers be made customers for life?
- “Add-on Selling”: Why selling more to existing customers is more profitable than the quest for new business.
The SME can furthermore apply two boosters to its CE policy:
- “Strategic Alliances”: When interdependence is smarter than independence.
- “External Economy of Scale”: Competition: if you cannot beat them, join them.
