How do you successfully compete in a hyper-competitive and constantly evolving environment? How do we identify the customers we are likely to keep, those we are at risk of losing, and those almost certain to defect? How can we determine which customers are too expensive to keep? What is a customer worth, anyway? And how can we most efficiently market to new customers, discovering those customers we have a better shot at winning, and especially those customers who are more likely to remain loyal—and be more profitable—over time?

The answers to these questions lie in Customer Asset Management (CAM). The idea behind CAM is that we manage the company as a portfolio of customers. Customer satisfaction is managed such that its positive effects (repeat business, high reservation prices, cross selling, etc.) are captured, and the harmful effects of a discontented buyer are minimized. CAM is about measuring, developing, and nurturing customer relationships. Of course, it's the relationships—the bond, glue, tie, or whatever we may want to call them—that are economic assets, not the customers themselves. And it is the sum of the value of these assets that comprise the value of the firm.