Customer portfolio analysis practices in different exchange contexts

Customer portfolio analysis using the SOM

“…CPA is important as several studies have found that the 20/80 rule holds for customer profitability as well; 20% of customers account for 80% of profits, and vice versa (Kim et al 2006;Park and Baik 2006). Although CPA is related to segmentation and can be seen as a subset of it, the purpose is different and many of the methods used are unique (Terho and Halinen 2007). CPA can beneficially be applied to analyze segments identified using segmentation methods.…”

“…There are a large variety of different methods available for CPA. However, although there is a great wealth of theoretical literature surrounding CPA available, very little literature appears to show how CPA is actually being used by companies today (Terho and Halinen 2007). Much of the literature concerns mathematical optimization models, such as portfolio theory (e.g., Turnbull 1990) and customer lifetime value (e.g., Kim et al 2006).…”

Customer portfolio analysis: Crisp classification versus fuzzy classification – Based on the supermarket industry

“…5 In the consumer portfolio context, these investments or assets are the consumers of the focal company. Terho and Halinen 6 defi ne consumer portfolio analysis as an activity by which a company analyses the current and future value of its customers for developing a balanced customer structure through effective resource allocation to different customers or customer segments. 7 Many studies dealing with customer portfolios have been conducted since the 1980s.…”

“…In line with contingency theory, some authors propose the need for different kinds of relationship marketing and management depending on the exchange context of the interacting fi rms. 6 Thus, the context within which the particular model maybe relevant is also stated along with the variables that the model deals with. Empirical research conducted by different researchers to test the various models can also be found in the table.…”

Outward-looking and future-oriented customer value potential management: The sales force value appropriation role

“…The empirical research is based on the constructive research approach (see Kasanen, Lukka, & Siitonen, 1993) and focuses through an intervention case, Alpha, on implementing a sales force-driven customer value potential estimation, analysis and management program. We assess the practical applicability and theoretical relevance of the suggested approach by analyzing Alpha's realized sales and rarely studied customer base dynamics (see Homburg et al, 2009;Johnson & Selnes, 2004;Terho & Halinen, 2007).…”