Customer Loyalty: Cost vs. Benefits - A Quantitative Approach - Virtual

This course will offer participants the knowledge and ability to use the concept of customer loyalty to create value for shareholders. Participants will learn why customer loyalty is an important measure in business performance evaluation, and how to quantify the value of each customer in economic terms. This course will help business executives to use customer loyalty and customer value as a means to establish a competitive advantage in the marketplace.

This is a live virtual class session accessible from any internet enabled computer anywhere in the world. All class times are listed in EDT.

16-Oct-2008 -- 16-Oct-2008USD$600
Virtual class session9:00am - 12:00pm Instructional Method:
Group-Live
Instructor(s): [ Richard Malekian; ] Thu Level: Basic
CPE Credits: 3

11-Dec-2008 -- 11-Dec-2008USD$600
Virtual class session9:00am - 12:00pm Instructional Method:
Group-Live
Instructor(s): [ Richard Malekian; ] Thu Level: Basic
CPE Credits: 3

The course is designed for Chief Financial Officers, Senior Vice Presidents of Finance, Vice Presidents of Customer Relations, Controllers, and accounting/financial analysts
No advance preparation required.
Students will be able to:
  • Define customer loyalty, how customer loyalty translates into shareholder value, the factors that influence customer loyalty, as well as which customers create company value and which destroy company value
  • Explain why net income is not an appropriate means to measure customer value, and which measure is
  • Answer questions such as, “Who are our most valuable customers?”, “Do we have customers who are actually diminishing our company value?”, and “What actions and programs should we engage in that will appeal to our most valuable customers?”
Knowledge/familiarity with basic concepts of accounting and finance
Customer Loyalty: Cost vs. Benefits – A Quantitative Approach
Why Customer Loyalty?
  • New Source of Shareholder Value
  • Competitive Advantage
  • Cost Versus Benefit

Impact of Customer Loyalty

  • Effect on Long-Term Customer Retention
  • Value Growth Over Time

Value Elements of Customer Loyalty

  • Basic Profit
  • Growth in Revenue
  • Cost Reductions
  • Referrals
  • Price Premium

Quantification of Customer Loyalty Using Net Income

  • Full Customer Retention
  • Partial Customer Retention
  • Shortcomings of Net Income Measurement

Economic Profit and Customer Value Management

  • What is Economic Profit?
  • Cost of Capital
  • Economic Profit Versus Net Income

Who are Your Most Profitable Customers?

  • Customer Value Hierarchy
  • Improving Customer Value

What Do Your Customers Want?

  • Loyalty Elements and Their Importance
  • Merging Loyalty Elements with Customer Value Hierarchy

Using Customer Data to Create Shareholder Value

  • Financial Analysis of Customer Loyalty Initiatives
This is a live virtual class session accessible from any internet enabled computer anywhere in the world. All class times are listed in EDT.

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.