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<p>Managers and investors need information about the performance and future prospects of a firm. If information is relevant in steering a business, it is also relevant for its investors’ investment decisions. Recent initiatives demand information that supplements and complements a firm’s financial statements to bridge the gap between financial statement capabilities and financial reporting objectives. Firms that aim to increase the value of their customer base should manage their business by future-oriented customer metrics. They should also report this information externally because it aligns customer management with corporate goals and investors’ perspectives. The authors propose a means to report customer equity that enables monitoring firms’ performance with respect to their customer assets. Furthermore, they develop a specific model for Netflix and apply it to quarterly reports that cover more than six years. </p>
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Managers and investors need information about the performance and future prospects of a firm. If information is relevant in steering a business, it is also relevant for its investors’ investment decisions. Recent initiatives demand information that supplements and complements a firm’s financial statements to bridge the gap between financial statement capabilities and financial reporting objectives. Firms that aim to increase the value of their customer base should manage their business by future-oriented customer metrics. They should also report this information externally because it aligns customer management with corporate goals and investors’ perspectives. The authors propose a means to report customer equity that enables monitoring firms’ performance with respect to their customer assets. Furthermore, they develop a specific model for Netflix and apply it to quarterly reports that cover more than six years.

My customers are better than yours! On Reporting Customer Equity

Professor of Marketing, Department of Marketing, Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, Netherlands Tel: +31 50 363 8653

Professor of Marketing and Member of the Board of the E-Finance Lab, School of Business and Economics, Goethe-University Frankfurt, Grueneburgpark 1, 60323 Frankfurt, Germany Tel: +49-69-798-34649

Associate Professor of Marketing, IESE Business School, Ctra. Del Cerro del Águila 3, 28023 Madrid, Spain

NIM Marketing Intelligence Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"My customers are better than yours! On Reporting Customer Equity"}

Managers and investors need information about the performance and future prospects of a firm. If information is relevant in steering a business, it is also...

My customers are better than yours! On Reporting Customer Equity

Published Online: Jul 19, 2014

Page range: 42 - 53

DOI: https://doi.org/10.2478/gfkmir-2014-0070

© 2014

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.