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Customer equity: a creative tool for SMEs in the services industry

How small and medium enterprises can win the battle for innovation

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Abstract

The creative use of “Customer Equity” (CE) can be of interest to SMEs in the services industry.CE concerns:

  • “Customer Acquisition”: Which customer or prospect should be acquired for present profit and future retention?

  • “Customer Retention”: How can customers be made customers for life?

  • “Add-on Selling”: Why selling more to existing customers is more profitable than the quest for new business.

The SME can furthermore apply two boosters to its CE policy:

  • “Strategic Alliances”: When interdependence is smarter than independence.

  • “External Economy of Scale”: Competition: if you cannot beat them, join them.

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Correspondence to Ward Roofthooft.

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Roofthooft, W. Customer equity: a creative tool for SMEs in the services industry. Serv Bus 4, 37–48 (2010). https://doi.org/10.1007/s11628-009-0082-6

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  • DOI: https://doi.org/10.1007/s11628-009-0082-6

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