FRAMEWORK · CUSTOMER
The luxury customer equation
A simple lens on the movements behind customer value.
The equation
**Customer growth = new relationships + retained relationships + reactivated relationships − lost relationships**
Each movement needs a different response. Acquisition opens a relationship. Retention deepens it. Reactivation creates a meaningful reason to return. Churn invites us to understand what the brand failed to understand or deliver.
Use it as a prompt
Pair each movement with customer value over time. Then ask where product, CRM, clienteling and experience can make a measurable difference. The equation is a starting point for better questions, not a substitute for judgement.
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FOOD 4 THOUGHTS
BY FRANCESCO LAERA