1 What is customer equity How can a company increase its cus

1. What is customer equity? How can a company increase its customer equity?

2. Give several examples you have found of hospitality companies being socially responsible. Include in your discussion how being socially responsible helps the company.

Solution

Meaning of Customer Equity

When we talk about building customer relationship the primary objective under Customer Relationship Management is to retain valuable customers of a company for long term. Customer Equity is thus very important for a company to develop long term relationships with the customers. Customer Equity can be defined as the summation of lifetime values of all the customers of a company.

The customer equity of a company can be increased in the following ways: