Profitable Customer Engagement
Companies and organizations face constant pressure to produce better results. They can either grow top-line sales through customer acquisition and retention and/or find a more profitable customer mix to improve the bottom line. This is where the Center for Excellence in Brand & Customer Management (CEBCM) at the J. Mack Robinson College of Business can make a difference.
Through extensive research, we have learned the key marketing metric every company should focus on when managing customers is Customer Lifetime Value (CLV). In simple terms, CLV is a formula that helps a company determine a dollar value per customer during the expected lifetime of the relation. A surprising result from our research show that customer profitability is not highly correlated with long-term customer retentions. In fact, it can be shown that the most loyal customer are not the most profitable. The question then is, which ones are? That is where CLV and our Profitable Customer Engagement (PCE) suite of metrics comes in to play. The PCE suite offers a comprehensive set of forward-looking metrics that allows (through in-depth statistical analysis) companies to identify which of their customers are profitable and assist the firm in leveraging those relationships.
Our research has shown us that the breadth of the CLV metric can be applied to the indirect profit contributions from the customer to the firm (see Figure below). These customer behaviors manifest as: (a) review/feedback on products and services, (b) referral behavior, and (c) online influence on prospects’ and other customers’ purchases.
We have also developed metrics to measure these behaviors. The Customer Knowledge Value (CKV) metric measures the customer review/feedback on products and services, the Customer Referral Value (CRV) metric measure the customer referral behavior, and the Customer Influence Values (CIV) measures the online influence on prospects’ and other customers’ purchases. Collectively, along with CLV, the above metrics are known as Customer Engagement Value (CEV) framework.
We have also found that the CEV framework is driven by Customer Brand Value (CBV), which refers to the total value a customer attaches to a brand through his or her experiences with the brand overt time. In other words, CBV is an attitudinal metric which impacts the four metrics in the CEV framework (CLV, CKV, CRV, and CIV).
From this knowledge base, we work with firms to identify a specific strategy and action plan to better manage their brands and customers for profit. In addition, we offer Brand & Customer Management education with hands-on workshops and real-world case studies through Robinson Executive Programs. We also provide students with a rich curriculum in this discipline, making Robinson a leading business school in marketing.
The center is the acknowledged world leader in the study of profitable brand and customer management through the use of the forward-looking metrics in the Profitable Customer Engagement. Using proprietary marketing-mix, predictive sales response models among others, sophisticated data analysis, and the PCE techniques, the center helps firms determine how best to increase sales, profits, customer and brand value by applying the most effective marketing strategies and actions.
The Profitable Customer Engagement suite is a reflection of the customer orientation paradigm, which is fast emerging as the dominant strategic approach among businesses. CEBCM offers practitioners and students a first-of-its-kind opportunity to prepare themselves and their firms for the future of business and marketing.
In difficult economic times, organizations and businesses need every possible advantage. If you need cutting-edge expertise to tackle a challenging problem or issue, we believe that Georgia State University and the Center for Excellence in Brand & Customer Management (CEBCM) may be able to help.
We also help companies with their brand management using sophisticated marketing-mix models and assess their current situation through rigorous data analysis.
The Executive Director of CEBCM, Dr. Kumar, has worked with several companies (partial listing):
|Wells Fargo & Company||Hewlett-Packard Co.||Polo Ralph Lauren|
|AT&T Inc.||Bristol-Myers||Squibb Co.|
|BP Amoco||The Coca-Cola Company||MGM Mirage|
|Georgia Aquarium||Home Depot||Chick-fil-A|
|Procter & Gamble||Air Tran||Hokey Pokey (India)|
For more information about our capabilities, please do not hesitate to contact us.
Vision and Mission
“A world-class forum in the creation and dissemination of knowledge on the unique aspects of managing brands and customers through interdisciplinary contributions”
- Encourage and solicit active participation from various disciplines to enrich and enhance the value propositions to multiple constituencies.
- Become the leading center for cutting-edge “Knowledge Creation and Tool Generation” in managing brands and customers.
- Be the leading center for the application of Customer Relationship Marketing know-how to various industries.
- Become the most productive center for publishing cutting-edge research papers and case studies in the brand and customer management area.
- Be the leading center for bringing innovation to the classroom in the Marketing Intelligence (MI) area, and develop future business leaders.
- Become the leading center for fostering the most productive academic-business community interaction to gain increased research opportunities, student placement, classroom enrichment and resource generation.