Sunday, March 29, 2009

Customer Equity (portfolio) management, c: one of the business issues

The Business Issue
Since our portfolio of customers represents the primary asset that we must manage, we need to make the most informed investment decisions we can when it comes to investing our resources into this group of assets. Whether the resource is time, money, or people, the optimal allocation of resources is a critical issue, a critical challenge, for almost every business organization, since no enterprise has unlimited resources. The customer relationship marketing models, which have been refined during the past 25 years, provide a critical key to unlock the answer to this problem.
In no functional area of business is this resource allocation problem more true than in sales, marketing, and servicing customers and/or prospects. In fact, the search for the optimal allocation of resources in these functional areas is something akin to the search for the Holy Grail.
This resource allocation (and concomitant knowledge management) issue should be a Board Level issue.

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