Acquisition of High-Value Customers for Automotive Banks

  • Stefan Müller
  • Katja Gelbrich
Conference paper
Part of the Operations Research Proceedings 2001 book series (ORP, volume 2001)


Many companies still follow the principle “the more customers the better”. However, the buyers’ contributions to a firm’s profit fluctuate evidently. Therefore, it is reasonable to attract “lucrative” persons. This idea has even been incorporated into a definition of marketing as the “art of attracting and keeping profitable customers” [1]. A powerful tool to assess an account is customer value, which is the sum of a purchaser’s contributions to a company’s well-being [2]. Contributions can be positive (benefits) or negative (costs) and monetary or nonmonetary. Classical evaluations focus on current rather than on prospective accounts, because the prevailing marketing paradigm is the management of customer relations, i.e. it focuses on re-purchase [3]. However, in accordance with Keane and Wang [4] or Shepard [5], we suggest that any evaluation should start with the acquisition, because it is five to seven times as expensive as customer retention [6]. Moreover, a value oriented acquisition brings about two advantages:
  • It empowers a company to spend its limited marketing budget on the “right” prospective purchasers. This will à priori positively bias its customer portfolio.

  • The à priori evaluation enables the firm to segment the market. Each value segment can be addressed according to its supposed contributions to the firm: Low-value purchasers get a standardized treatment, while high-value accounts may enjoy special attention (e.g. face-to-face consultation). Thus, value orientation is the base for the “right” scope of customer orientation.


Data Envelopment Analysis Efficiency Score Customer Retention Customer Lifetime Value Analysis Data Envelopment Analysis 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Stefan Müller
    • 1
  • Katja Gelbrich
    • 1
  1. 1.Dep. of MarketingTU DresdenDresdenGermany

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