What Is the True Value of a Lost Customer?

By John E. Hogan, Katherine N. Lemon, Barak Libai. 2003

298 citations recorded by the source corpus.

Subfields: Management Science and Operations Research, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/9e630d251b784507cd4824a1720c9b95a08c2f67

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In Management Science and Operations Research

In Strategy and Management

Citations in the corpus

Modeling Customer Lifetime Value (2006, background): “In many situations, customer network effects can be strong, and ignoring them may lead to underestimating CLV. Hogan, Lemon, and Libai (2003) showed that word of mouth or direct network effects can be quite substantial for online banking.”
Perceived value, service quality, corporate image and customer loyalty: Empirical assessment from Pakistan (2012, background): “Numerous research studies showed that companies can generate more profit through retaining their current customers rather than to attain previous ones (Hogan et al., 2003, Lee-Kelley et al., 2003).”
Are Product Returns a Necessary Evil? Antecedents and Consequences (2009, background): “…bottom line, whether through increasing customer lifetime value (i.e., increases in spending/revenue and price premiums) or by increasing customer equity by retaining customers who tend to refer additional customers to purchase (Hogan, Lemon, and Libai 2003; Kumar, Petersen, and Leone 2007).”
The Diffusion of Services (2009, background): “However, customers also can disadopt; that is, they can leave the service category altogether (Hogan, Lemon, and Libai 2003).”
Firm-Created Word-of-Mouth Communication: Evidence from a Field Test (2009, background): “However, as was pointed out by Hogan et al. (2003), the value of a lost customer does not just include the revenue generated directly by the customer but also the lost value of the social interactions associated with the customer. Gupta, Mela and Vidal-Sanz (2006) find sizable network effects in an ”
Customer Equity: Measurement, Management and Research Opportunities (2007, background): “The roots of the current research in CE can be found on several overlapping research streams: direct marketing, service quality, relationship marketing, and brand equity (Hogan et al., 2002c).”
Using a customer-Level marketing strategy to enhance firm performance: A review of theoretical and empirical evidence (2005, background): “…these customers who do add value to the company through indirect means to defect from the firm or disadopt the product or services being offered, especially early on in the life cycle of a product, can generate significant losses in future profits for the firm (Hogan, Lemon, and Libai 2003).”
Managing rewards to enhance relational worth (2011, background): “Hogan et al. (2003) discovered that organizations experienced a significant loss of profitability when consumers defected, not only in terms of the revenue from consumers’ foregone future purchases, but also from defecting consumers’ lost word-of-mouth and recruitment efforts.”