Marketing actions and the value of customer assets: A framework for customer asset management

This article develops a framework for assessing how mar-keting actions affect customers ’ lifetime value to the firm. The framework is organized around four critical actions that firmsmust take to effectivelymanage the asset value of the customer base: database creation, market segmenta-tion, forecasting customer purchase behavior, and re-source allocation. In this framework, customer lifetime value is treated as a dynamic construct, that is, it influ-ences the eventual allocation of marketing resources but is also influenced by that allocation. By viewing customers as assets and systematically managing these assets, a firm can identify the most appropriate marketing actions to ac-quire, maintain, and enhance customer assets and thereby maximize financial returns. The article discusses in detail how to assess customer lifetime value and manage cus-tomers as assets. Then, it identifies key research chal