The Economics of Customer Businesses

maggio 19, 2021

The Economics of Customer Businesses

Consilient Observer

The Economics of Customer Businesses

maggio 19, 2021

Calculating Customer-Based Corporate Valuation

This report focuses on the customer as the basic unit of analysis in understanding value. The idea of customer lifetime value (CLV) has been around for decades, but we believe that our discussion is richer and more nuanced than what many companies and analysts present.
Two influential marketing professors introduced a framework called customer-based corporate valuation (CBCV), which links customer economics to shareholder value. CBCV’s main contribution is that it provides a more robust way to forecast revenues than current models do.
We discuss the key elements of the CBCV model, including customers, revenues, and costs. We show the limitations of common ratios such as customer lifetime value to customer acquisition cost (LTV/CAC).
The report explores how companies can create consumer and supplier surplus, provides a case study on the postpaid segment of AT&T Mobility, examines trade-offs in the drivers of value, and explores common errors.

SCARICA IL PDF

Counterpoint Global’s culture fosters collaboration, creativity, continued development, and differentiated thinking.

Subscribe to Counterpoint Global Insights - Consilient Observer

Email Address*

Please enter a valid email address

Please enter the code sent to your email address.

Valid for 10 minutes only

Invalid Otp

Confirm

Resend Code

Email Not Sent

First Name* Please enter your first name

Last Name* Please enter your last name

Paese* Please enter your country

Submit

Approfondimenti correlati

The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively the Firm”), and may not be reflected in all the strategies and products that the Firm offers.

This material is for the benefit of persons whom the Firm reasonably believes it is permitted to communicate to and should not be forwarded to any other person without the consent of the Firm. It is not addressed to any other person and may not be used by them for any purpose whatsoever. It expresses no views as to the suitability of the investments described herein to the individual circumstances of any recipient or otherwise. It is the responsibility of every person reading this material to fully observe the laws of any relevant country, including obtaining any governmental or other consent which may be required or observing any other formality which needs to be observed in that country.

This material is a general communication, which is not impartial, is for informational and educational purposes only, not a recommendation to purchase or sell specific securities, or to adopt any particular investment strategy. Information does not address financial objectives, situation or specific needs of individual investors.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Prior to making any investment decision, investors should carefully review the strategy’s relevant offering document. For the complete content and important disclosures, refer to the article's PDF.

The Economics of Customer Businesses