Most research in customer asset management has focused on specific aspects of the value of the customer to the company. The purpose of this article is to propose an integrated framework ? called CUSAMS -- that enables service organizations to comprehensively assess the value of their "customer assets" and to understand the influence of marketing instruments on them. The foundation of the CUSAMS framework is a careful specification of key customer behaviors that reflect the length, depth and breadth of the customer-service provider relationship: duration, usage, and cross-buying. This framework is the starting point for a set of theoretically based propositions regarding how marketing instruments influence customer behavior within the relationship, thereby influencing customer value. Then, building on prior research, we provide two empirical examples of how the CUSAMS framework can be used to conduct financial analyses of the return on investment from marketing expenditures designed to influence behavior and increase the value of the customer base. The framework and propositions provide the impetus for a research agenda that identifies critical issues in customer asset management

cross-buying, customer asset management, customer behavior, customer equity, customer retention
Statistical Decision Theory; Operations Research (jel C44), Asset Pricing (jel G12), Business Administration and Business Economics; Marketing; Accounting (jel M), Marketing (jel M31)
Erasmus Research Institute of Management
ERIM Report Series Research in Management
Copyright 2002, R.N. Bolton, K.N. Lemo, P.C. Verhoef, This report in the ERIM Report Series Research in Management is intended as a means to communicate the results of recent research to academic colleagues and other interested parties. All reports are considered as preliminary and subject to possibly major revisions. This applies equally to opinions expressed, theories developed, and data used. Therefore, comments and suggestions are welcome and should be directed to the authors.
Erasmus Research Institute of Management

Bolton, R.N, Lemo, K.N, & Verhoef, P.C. (2002). The Theoretical Underpinnings of Customer Asset Management (No. ERS-2002-80-MKT). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from