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In simple terms, customer equity can be defined as the sum total of the lifetime values of all the customers of a company. While considering customers, you need to take into account both existing as well as future prospective customers.
Another way to look at customer equity is to consider it as a long term asset. If a company were to give off all the money in its bank and sell off all its properties and assets, and then be willing to sell itself solely as a business entity, the money that anyone would pay for this transaction alone, i.e., buying the business is known as customer equity.
Since customer equity is mainly focussed in assessing the future business prospects and worth of a company, it can both go up or down in value. The decisions and actions that a company takes goes a long way in deciding its customer equity.
Even for students, customer equity is an important part of their business and management studies curriculum. Most of the students take help of the internet while looking for answers to their customer equity assignment questions and hence it is no wonder that Customer Equity homework help is one of the most sought after queries of students in these particular streams in myhomeworkhelp.com.
Why customer equity is important?
Customer equity is important in deciding the future business of a company and hence is an important aspect of a company’s revenue generation model. It is the duty of the company to ensure that the customer equity of a company is maintained and grows as years pass. This establishes a constant client base for the company’s products and services.
The more the loyal the client base of a company is, the more customer equity it has. If we compare two companies doing the same business and to be equal in all other counts, the company with more customer equity has more valuation than the other.
Assignment related problems
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Why students no longer need to worry
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