Analysis of issues of customer equity management based on CRM

Marketing performance is directly linked to customer equity. It is very crucial. to. set forth and advocate the concept of customer equity in the process of an accompanying shift from product-based commercial strategy to customer-based strategy. In this paper, we have developed and illustrated some important issues of customer equity management based on CRM, such as the concept and contents of CRM, the importance and necessity of customer equity management, and factors to acquire customer equity; etc. On the basis of above, we have constructed a customer equity model. The model produces an improved method of calculating customer lifetime value, and considers how to target and focus marketing expenditures in a competitive marketing environment. In the context, we also have analyzed the problems of implementation of customer equity model, discussed the calculation of CLV, and put forward measurement of building a customer equity management system.