Potential Customer Equity Measurement

Customer equity is the sum of the current customer equity and potential customer equity.Based on the studies of customer purchase behavior modeling,this article develops a general framework consisting of customer acquisition predicting,customer purchase behavior analysis and customer cost analysis is developed for measuring the potential customer equity of a company,and available models are concluded and illustrated with an empirical case.It is also proposed a matrix combining present and potential customer equity for customer equity portfolio analysis which can be a helpful decision tool for both investor and marketing manager.