Valuing Customer Engagement

In recent years, the concept of customer engagement has evolved as a powerful tool in the managerial toolkit of firms to incorporate a profitable approach to customer management. There is a pressing need for an authoritative book that communicates the fundamentals of profitable customer engagement by proposing a customer engagement value framework. This book, Valuing Customer Engagement, is first of its kind on customer engagement that outlines the theory and methods of engaging customers profitably in business-to-consumer and business-to-business settings.

Written by world-renowned scholar and thought leader V. Kumar, this seminal work book explains the definitions of the metrics within the CEV framework and analyzes ways to measure and maximize these metrics that can help in engaging customers profitably. Dr. Kumar also reveals the interrelationships between these metrics, i.e. how each metric impacts the other, with examples from all over the world.

This updated edition introduces of Customer Valuation Theory as a way of quantifying direct and indirect engagement value while presenting newer applications and case studies. With practical examples of companies that have benefited by implementing these strategies, this guide is a must have for business executives who want to maximize companies profitability as well as students wanting to learn how to engage customers and build loyalty.

“Proactively engaging customers is the answer to creating and leveraging loyal customers. VK describes how to do just that with clear, authoritative logic. A must read for executives facing dynamic marketplaces, fast-moving competitors,  and  the  realities  of  a  digital  communications  and  communities. The five metrics will become classic tools of future executives and students of management.”

—Dave Aaker, Vice-Chairman of Prophet Brand Strategy, Professor Emeritus at UC Berkeley. 

“Engaging  the  customer  is  the  holy  grail  in  today’s  paradigm  shifting, big datafied, socially networked, exponential rate of change environment. With this book, VK  has  presented  an  invaluable construct to the increasingly complicated, but never more important role of CRM to organizations of all stripes. He has done a remarkable job ofexplicating the distinct components of customer engagement, while presenting a set of analytical tools that bring each into clear focus for actionable, marketing programs that will optimize customer lifetime value. It’s a must read!”

—Alan Beychok, Former CEO, Benchmark Brands/FootSmart, USA 

“As customer touchpoints continue to proliferate, marketers must continue to learn the depth and value of their engagement with their best customers. In this revision of his landmark book VK adds more depth and insight to the management of each facet of an engagement. A noteworthy advance is the emphasis on the customer asset value created during the customer’s journey.”

—George Day, Geoffrey T. Boisi Professor; Professor of Marketing, Co-Director, Mack Center for Technological Innovation, Director, Emerging Technologies Management Research Program 

“To be successful a firm must engage andsatisfy its customers profitably. VK provides the frameworks and metrics for firms to be successful in customer engagement. He provides compelling examples to illustrate substantial gains in profits from successful implementation. Whether you are building a brand, maintaining your brand, or managing for profitability, this book provides you with the tools that you need.”

—John R. Hauser, Kirin Professor of Marketing, MIT Sloan School of Management 

“This book is destined to be a classic from a real Legend in Marketing!!! It is a MUST READ for managers in ALL for-profit industries!!! Why? Based on years of research, Dr V. Kumar (VK) details the processes a firm can follow to become profitable using an innovative and impressive set of metrics. Further- more, VK demonstrates the value of implementing these metrics. This is the ONLY book in the market that can provide valuable information for every firm regardless of industry. As such, this book is unparalleled. Most business pundits propose a ‘silver bullet’ that is demonstrated via case studies to work in a small number of firms. Unfortunately, most managers discover that these ‘silver bullets’ miss the mark for their businesses. Instead, VK shows that there is more than one way for a firm to profitably engage with its customers. Each way is based on sound theoretical principles, carefully defined, measured, managed, and shown as a blueprint that managers can follow to achieve sustainable profits. Moreover, this book is loaded with case studies and implementation stories. As a result, VK offers convincing evidence that this is no magic bullet—it is a tried and true guide to long-term business success.”

—Timothy Keiningham, J. Donald Kennedy Endowed Chair in E-Commerce, St. John’s University, NY and Chief Strategy and Client Officer, Rockbridge Associates

 

“Companies  that  want  to  be  winners  have  to  go  beyond  just  making and selling more products. They need to deepen their engagement with their customers and have ways to measure the engagement level of their individual  customers.  VK has done  the  best  theoretical  and  empirical work that I know in this field. This book will be an ‘eye opener’ for most companies.” 

—Philip Kotler, S.C. Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University (Emeritus)

“Dr V. Kumar has once again identified a timely and critical way to maintain a competitive advantage and drive continued profitability at a time when many companies are focusing on cost-cutting strategies rather than their customer base. This book shows in a clear and straightforward manner multiple ways a

company can identify profitable customers and more important, keep those customersloyal and profitable to your brand by engaging them in a manner that in some ways makes them co-producers of what they are purchasing. Driven by theoretical support and metrics developed through rigorous research involving both large and small companies, Dr Kumar suggests a number of new engagement strategies that are certain to lead to guaranteed profits. These strategies are described in a clear manner and illustrated by various real-world case studies. This book is a must read for both C-level executives and customer-facing employees.”

—Robert P. Leone, J. Vaughn and Evelyne H. Wilson Chair and Professor of Marketing, M.J. Neeley School of Business, Texas Christian University 

“While firms generally recognize that their customers are the source of their growth and profitability, most fall far short of optimizing their customer engagement process. As V. Kumar shows in this important new book, customer engagement optimization goes far beyond the direct, economic profitability of individual customers. Customers provide positive (or negative) profit contributions through their social networks, their referrals, and their knowledge

or knowhow. Drawing on decades of research, VK provides the theoretical basis, conceptual framework, the measurement processes and the marketing strategies firms need to optimize the customer engagement process. This book provides a blueprint for increased profitability through improved customer engagement and is destined to become a classic..”

—Gary L. Lilien, Distinguished Research Professor of Management Science, Penn State and Research Director, Institute for the Study of Business Markets 

“This is the best book that incorporates Theory of Customer Valuation and Measuring Customer Engagement value, period! It is very comprehensive, highly readable, and simply engrossing. It is also conceptually rich, scientifically rigorous, and manageriallyrelevant.”

—Jagdish N. Sheth, Charles H. Kellstadt Professor of Marketing, Goizueta Business School, Emory University 

“In today’s globally competitive environment, differential advantage is shifting from product-related advantages which can be easily copied to the ways that companies engage with their customers. In this book, internationally renowned Professor  V.  Kumar  develops  a  highly  useful  and  innovative  5-component model  for  how  companies  can  value customers, design  and  implement  such  engagement strategies profitably. Backed by sound and rigorous academic research as well as numerous illustrations, Professor Kumar’s recipe for competitive advantage should be studied and utilized by any company that wishes to survive and be profitable in the marketplace today.”

—Russ Winer, William H. Joyce Professor of Marketing Chair and Marketing Department Academic Director of Stern Center for Measurable Marketing, New York University

Dr. V. Kumar (VK) is the Professor of Marketing, and the Goodman Academic-Industry Partnership Professor, Goodman School of Business, Brock University, ON, Canada. Prior to joining Brock, VK was the Salvatore Zizza Professor of Marketing, Tobin College of Business at St. John’s University, NY. He has held/holds several Distinguished Faculty Positions and Fellowships across universities worldwide.  VK has also been honored as a Legend in Marketing through the 10-Volume Legends in Marketing series published by Sage Publications with commentaries from scholars worldwide. Professor Kumar has published over 300 scholarly papers and 30 books, received over 20 Lifetime Achievement Awards, and over 25 Research and Teaching Excellence Awards. Professor Kumar has served as the Editor-in-Chief of the Journal of Marketing (2014-2018) and serves/served as the Department Editor of POM, and as the Consulting Editor of JIBS. Global Fortune 500 firms have implemented many of VK’s ideas and models in multiple areas of marketing and operations which have resulted in gains of over multi-billion dollars. (URL: www.drvkumar.com and www.vkclv.com ).