Targeted product offers to develop customer asset value: A longitudinal assessment
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This study explores the longitudinal gains resulting from the introduction of a formal cross-selling program in a large insurance organisation. Prior research and theory in this area has argued that cross-selling increases Customer Lifetime Value and therefore Customer Asset Value (also called Customer Equity). The current study supported those contentions by tracking two groups of customers over seven years. One group was cross-sold products, whilst another group of customers was not. Results indicate that cross-sold customer purchased more often, retained the product longer and subsequently purchased more products. Cross-sold customers contributed more than twice as much value to the organisation.
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