What's it called.. "Company Value" or "Customer Equity"?

There's an interesting article published yesterday in AdAge .. Seeking Higher ROI? Base Strategy on Customer Equity with a call to action... "Why CMO's Need to Pay Closer Attention to a New Metric to Focus Investments on the Most Profitable Actions."

The new metric is "Customer Equity", which is compared to the traditional metric "company value". The article offers such great advice as "Do more of what drives value" and "measure the return on your marketing.. in terms of Customer Equity". While the intent of the article is sound, we ask... how did we get here? It appears the marketing community has manufactured a "new metric" with "new measurement" ideas eerily similar to one of the oldest measurements in business.

As marketers we like "new" but let's not forget business basics and simple common sense as we develop our "new" ways to market our products and services. For example, Word of Mouth is "new" but is it? Hasn't your existing customer always been your best customer? Hasn't personal referral always been the most effective? What is new is the Internet and software technologies as the basis to efficiently scale our "new" marketing programs. So, make sure your "new" Word of Mouth marketing programs drive real "Customer Equity" growth.

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