Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008) (2008)
Waikoloa, Big Island, Hawaii
Jan. 7, 2008 to Jan. 10, 2008
"Don't put all your eggs in one basket" is common wisdom with respect to financial portfolio theory. The configuration of customer portfolios with regard to ap- propriate risk and return measures, however, is gene- rally an accidental occurrence based on a number of separated loyalty or acquisition initiatives rather than a deliberate planning process. In this contribution, we propose to use portfolio selection theory to identify the optimal configuration of a customer portfolio. Specifi- cally, we look at two broad customer segments: trans- action- and relationship-oriented customers. E-tailers are of special interest, since the target-oriented acqui- sition and servicing of specific customer seems to be more easily achievable due the new means of commu- nication. A first evaluation based on customer lifetime value is realized with a publicly accessible set of empirical data from the online-retailer CDNow.
S. Sackmann, M. Ruch and D. Kundisch, "CRM and Customer Portfolio Management for E-Tailers," Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008)(HICSS), Waikoloa, Big Island, Hawaii, 2008, pp. 276.