Patagonia are well-known as a company with a mission. You have to admire that even if you don’t subscribe to the mission. Being known for something is vital to effective marketing. The founder, and his nephew, give their thoughts on what the responsible company means. What does it look like? How does it act? Responsible…
Search Results for: accounting
Customer Equity Statements And Financial Reporting
Think of a brilliant move in soccer. The player shows great vision, and excellent passing. There is some fantastic build up play where lots of people are involved. The movement shows amazing promise and then someone slips and blasts the ball miles away from the goal. To my mind that is where we are in…
Points Pressure Versus Rewarded Behavior
There are various different ways that loyalty programs can be effective. We looked at how a specific program, Air Miles Cash in Canada, impacted the behavior of its collectors. We compared points pressure versus rewarded behavior to see which drove most of the collector activity. This allowed us to suggest how to increase the program’s…
Internal Measurement Of Brand Value
As regular readers will know I do a lot of work with MASB (the marketing Accountability Standards Board). Some of my colleagues at MASB wrote a paper about brand valuation. I want to highlight and reinforce their message. A key part of this is that the internal measurement of brand value is crucial to bringing…
Role Of Customer Equity
Daniel McCarthy and Fernando Pereda have a paper on the role of customer equity in corporate valuation. It is on SSRN so a working paper and yet to be formally published, see here. Still, it has been downloaded a lot. So, I think it reasonable to take a look and comment as many have already…
Using A Pie-Growing Mindset
Alex Edmans’ Grow The Piece is a useful book trying to refocus business on being beneficial for society. I have noted the key points on this before, see here. Here I’ll tackle a grab bag of points related to Edmans’ book and using a pie-growing mindset. Maximizing Shareholder Value Is Nebulous Often people like the…
Three Principles To Guide Decision-Making
Alex Edmans, a finance professor, is having a bit of a moment at the moment. His book Grow The Pie that I’m discussing in two posts is a very useful addition to the field. This post will outline the core points of Edmans’ work. The other post will get into a few more finicky points…
Stopping Undervaluing Customers Through Measurement
Rob Markey at Bain has had an interesting career. He clearly has done a lot right. He is an advocate for the importance of marketing in the c-suite. As such it is welcome when he weighs in to support important ideas. In a 2020 piece in the Harvard Business Review he laid out a plan…
The Origins Of Customer Equity
Customer equity is a concept that seems to have had its day in marketing. It arose, and it seems to me somewhat went away, relatively quickly. A 1996 article on the Harvard Business Review by Robert Blattberg and John Deighton lays out the idea of managing by a customer equity test. In many ways, this…
Customer-Based Corporate Valuation
I think the idea of using customer information in corporate valuation is a great one. As such, I am very receptive to work on customer-based corporate valuation. A 2005 paper in Management Decision I think well illustrates some of the challenges I have seen in this field. Lots of good ideas, some reasonable points, but…