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    The Value of a Satisfied Customer

    Ribera, Jaume ; Rosenmöller, Magda

    English , Spanish

    • Reference: PN-368-E

    • Number of pages: 5

    • Publication Date: Apr 15, 1995

    • Source: IESE (España)

    • Type of Document: Technical Note

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    Description

    Knowing the value of a customer is an important element in managing the service quality of an organization. By value of a customer we understand the net present value of the cash flows generated by this customer. Our experience shows that in those organizations where this value is known the personnel is more sensitive to losing customers and that these organizations launch many more initiatives to retain them, thus increasing the profitability of the organization.

    Keywords

    Cash flow