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Customer Equity
The total combined customer lifetime value across all customers, often used to assess the long-term value of marketing efforts.
Implications
The total combined value of a company�s customer relationships, often considered a key asset, reflecting the future revenue potential from a loyal and engaged customer base.
Example
Example: A telecom company measures its customer equity by analyzing the lifetime value of its subscribers, understanding that high customer equity indicates strong brand loyalty and future revenue potential.
Related Terms
Different from brand equity, which focuses on the perceived value of the brand itself, customer equity is about the financial value of the customer relationships a company has built.
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