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Improving Shareholder Value Through Customer Equity

Customer equity functions in a positive perspective of the company, its offerings and its employees.   Customer equity has significant worth to companies that desire to encourage customers to continue to pay for products and services that raise shareholder value, firm growth and employment prospects. A study by Shultze, et. al. (2012) found that increases in customer equity have a larger impact on shareholder value. It is this shareholder value that is used for reinvestment for future growth and opportunities.  Customer equity, marketing practices, and revenue are closely associated. When customers consider their total impressions of a company and its offerings they will naturally consider purchasing or not purchasing the product or service again. Customer equity raises the likelihood that they will make a decision to purchase again…and hopefully again and again. This correlation of marketing metrics, customer receptivity and stock value has been associated in a number of diff