Customer Metrics and Their Impact on Financial Performance

Gupta, Sunil; Zeithaml, Valarie

doi:10.1287/mksc.1060.0221

Cited by 914

The DOI matches its Crossref record; 21 of the 21 references it cites were found in a registry or an index.

Customer Metrics and Their Impact on Financial Performance

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Gupta, Sunil, Zeithaml, Valarie·2006·Marketing Science

DOI 10.1287/mksc.1060.0221

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Abstract

The need to understand the relationships among customer metrics and profitability has never been more critical. These relationships are pivotal to tracking and justifying firms’ marketing expenditures, which have come under increasing pressure. The objective of this paper is to integrate existing knowledge and research about the impact of customer metrics on firms’ financial performance. We investigate both unobservable or perceptual customer metrics (e.g., customer satisfaction) and observable or behavioral metrics (e.g., customer retention and lifetime value). We begin with an overview of unobservable and observable metrics, showing how they have been measured and modeled in research. We next offer nine empirical generalizations about the linkages between perceptual and behavioral metrics and their impact on financial performance. We conclude the paper with future research challenges.

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Background

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Authors: Gupta, S., & Zeithaml, V.
Venue: Marketing Science
Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Published: 2006-11
Volume: 25
Issue: 6
Pages: 718-739
ISSN: 0732-2399 (ISSN-L)
1526-548X
DOI: 10.1287/mksc.1060.0221
OpenAlex: W2115278118
Cited by: 914
References: 21
FWCI: 93.85
Type: journal article
Language: en
Open access: green

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Customer Metrics and Their Impact on Financial Performance

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