The Value of the Customer
Peter Fader: This paper brings together two topics — one very old and well established, and one that is new and emerging. The old topic is corporate valuation. Everybody is talking about how you look at a corporation and value it. The new topic is customer valuation. Can we look at individual customers or group of customers and say what they are going to be worth in the future? This paper is all about bringing the two together, in a really rigorous and practical, real-world way. Can we do corporate valuation from the bottom up by looking at the value of current and future customers, adding all that up and saying, “That’s the value of the corporation”?
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