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This work offers a summary of the book "RETURN ON CUSTOMER: Creating Maximum Value from Your Scarcest Resource" by Don Peppers and Martha Rogers.
In Return on Customer, Don Peppers and Martha Rogers explain the concept of "Return on customer" (ROC), which is a new business metric designed to measure the amount of value a business creates by acquiring, retaining and then growing its customer base.
When ROC is positive, your firm is creating value from your customer base, either by increasing sales in the current period or by enhancing the likelihood the customer will do more business with your firm in the future. Conversely, when ROC is negative, your firm is destroying customer equity or customer lifetime value, making it less likely you will be able to generate profits from your customer base in the future.
Peppers and Rogers have put together seven key arguments for using return on customer as a management metric: Scarcity, Wall Street, Balance, Perspective, Personalization, Leverage and Education. Each of these arguments are being developed in Return on Customer.
Return on Customer is an absolutely revolutionary book, introducing a breakthrough financial metric.
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