Research On Construction And Application To The Model Of Retail Customer Equity Measurement For China's Bank

Customer equity is a hot research topic in the field of marketing. There is a growing recognition that customer equity is a valuable recourse and represents competitiveness of company. Therefore effective measurement and management of customer equity becomes particularly important. This study focuses on customer equity measurement model.Firstly, this paper summarized the existing customer equity measurement model. Secondly, according to deficiency in existing models, this paper introduced measurement model based on publicly available data. According to characteristics of China's commercial bank annual report, this paper redefined the model variables. Thirdly, this paper applied to the two joint-stock commercial banks in China - China Merchants Bank and Minsheng Bank to make empirical analysis. Finally, this paper discussed the application to measurement model based on publicly available data in the field of China commercial bank management. Focused on the main contribution of this study are as follows:1. This paper improved the measurement model based on public available data, according to the characteristics of China's commercial bank report.This paper used the k-phase of new customers within the total profits to substitute for the original classical model variables - the k period the number of customers and united within the new customer average profit, and used finite time T to replace the original model of infinite time. The improved model is applicable to measurement of China bank retail customer equity.2. This paper make empirical analysis to the two joint-stock commercial banks in China- China Merchants Bank and Minsheng Bank retail customers, and predicted two banks' future trend. This paper predicted the two listed banks'retail customer equity from 2006 to 2014. The results showed that the retail customer equity of China Merchants Bank is significantly higher than the Minsheng Bank, and maintains good growth momentum. This showed that China Merchants Bank in the retail business have high competitive. Although Minsheng Bank retail customer equity has a fast-growing, because of the early losses of more, it just entered into recovery position.3. Discussion the application to measurement model based on public available data in management of China commercial banks.This paper proposed China commercial bank management recommendations:making a reasonable standard format for Chinese Commercial Banks Annual Report; establishing of the financial statements of customer equity; constructing assessment of the competitiveness of China's banking system containing the element of customer equity.