Valuing the Customer
Episode Description
Many businesses will say that their customers are their most valuable assets, but few understand how true that is -- or how accurately a measurement of customer-based value can price their whole enterprise. More: http://knlg.net/1RiNWH2 📂 Finance & Accounting 🏷️ Research
Brief Summary
The episode covers integrating customer metrics into corporate valuation using Dish Network as a case study.
Key points
- Customer-Based Corporate Valuation. This paper combines corporate and customer valuation to determine a company's worth.
- Democratizing Valuation Methods. The researchers aim to make their valuation methods and data available to everyone.
- Valuing Customer Lifetime. The research estimates the average customer at Dish will remain for about 5.5 years.
- Rigorous Valuation Standards. The goal is to establish rigorous standards for customer data disclosure in finance.
- Valuing Customers vs. Assets. The discussion highlights the disparity in how companies value customers compared to physical assets.
- A Tale of Two Worlds. An intriguing comparison between the valuation of customers and physical assets.
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Episode highlights
- Customer-Based Corporate ValuationThis paper combines corporate and customer valuation to determine a company's worth.“Can we look at individual customers and say what they’re going to be worth?”0:17Jan 26, 2016
- Democratizing Valuation MethodsThe researchers aim to make their valuation methods and data available to everyone.“We want to democratize this and make this kind of core concept widespread.”3:06Jan 26, 2016
- Valuing Customer LifetimeThe research estimates the average customer at Dish will remain for about 5.5 years.“These customers are assets but they’re not acknowledged as such.”15:25Jan 26, 2016
- Rigorous Valuation StandardsThe goal is to establish rigorous standards for customer data disclosure in finance.“We want the answers to those questions to be as rigorous as finance and accounting.”16:51Jan 26, 2016
- Valuing Customers vs. AssetsThe discussion highlights the disparity in how companies value customers compared to physical assets.“There's real gold in valuing customers.”17:43Jan 26, 2016
- A Tale of Two WorldsAn intriguing comparison between the valuation of customers and physical assets.“It's like a tale of two worlds.”19:12Jan 26, 2016
- Breaking Down SilosThe need for collaboration between marketing and finance is emphasized for better corporate valuation.“We need to break down silos.”20:28Jan 26, 2016
Tension
40/ 100Low tension
