Customer Accounting: Creating Value with Customer Analytics
by Massimiliano Bonacchi (Author), Paolo Perego (Contributor)

About the Author
Massimiliano Bonacchi is Full Professor in Accounting at the Free University of Bozen-Bolzano in Italy. He graduated and received his Ph.D. from the University of Florence (I). He has been a visiting professor at NYU Stern School of Business and Baruch College CUNY (USA). His research interests include financial reporting and disclosure, financial statement analysis, managerial accounting, and corporate social responsibility. He has published in various international peer-reviewed journals, including Contemporary Accounting Review, Business Strategy and the Environment, and Management Accounting Quarterly.
Paolo Perego is Associate Professor in Accounting at the Free University of Bozen-Bolzano in Italy. He is a graduate of Bocconi University (I) and EPFL (CH), and he received his Ph.D. at Radboud University Nijmegen (NL). He is visiting faculty at the Rotterdam School of Management, Erasmus University (NL), where he has been Associate Professor. His research and teaching interests include managerial accounting, performance measurement systems, sustainability accounting, and Integrated Reporting. He has published in several international peer-reviewed journals, including Accounting, Organizations and Society, Journal of Management Studies, European Accounting Review, Journal of Accounting and Public Policy and Management Accounting Quarterly.

About this book
This book is designed to meet the needs of CFOs, accounting and financial professionals interested in leveraging the power of data-driven customer insights in management accounting and financial reporting systems. While academic research in Marketing has developed increasingly sophisticated analytical tools, the role of customer analytics as a source of value creation from an Accounting and Finance perspective has received limited attention. The authors aim to fill this gap by blending interdisciplinary academic rigor with practical insights from real-world applications. Readers will find thorough coverage of advanced customer accounting concepts and techniques, including the calculation of customer lifetime value and customer equity for internal decision-making and for external financial reporting and valuation. Beyond a professional audience, the book will serve as ideal companion reading for students enrolled in undergraduate, graduate, or MBA courses.

Table of contents
1 Introduction 1
    1. 1 Customer-Centricity in a Fast-Evolving Landscape 1
    1. 2 Motivation and Objectives of This Book 4
    1. 3 Theoretical Framework: Organizational Architecture 5
    1. 4 Outline of This Book 8
    References 10
2 Customer Analytics: Definitions, Measurement and Models 13
    2. 1 Customer Analytics: Definitions of CP, CLV and CE 13
    2. 2 CLV Formulae: Sources and Variations 16
    2. 3 Applications of CLV in Subscription-Based Business Settings 17
    2. 4 CLV Scorecard and Cohort Analysis: An Application in an SBE 19
        2. 4. 1 The CLV Scorecard as a Performance Measurement System 20
        2. 4. 2 Benefits of CLV Scorecard 24
        2. 4. 3 CLV Cohort Analysis: Rationale 25
        2. 4. 4 CLV Cohort Analysis: A Practical Illustration 28
    2. 5 Conclusions and Implications 33
    References 33
3 Customer Analytics for Internal Decision-Making and Control 37
    3. 1 Review of Accounting and Marketing Literature 37
    3. 2 Evaluation of the Literature 41
    3. 3 A Case Study on the Adoption of Customer Analytics 42
        3. 3. 1 Case Background and Research Methodology 42
        3. 3. 2 Organizational Structure 43
        3. 3. 3 The Performance Measurement System 45
        3. 3. 4 The Reward System 47
        3. 3. 5 Conclusions and Implications from the Case Study 48
    3. 4 An Exploratory Cross-Sectional Survey on the Adoption of Customer Analytics 50
        3. 4. 1 Sample and Data Collection 53
        3. 4. 2 Descriptive Statistics and Univariate Analysis 54
        3. 4. 3 Multivariate Analysis 56
        3. 4. 4 Conclusions and Implications from the Survey 58
    Appendix Chapter 3: Questionnaire 59
    References 64
4 Customer Equity for External Reporting and Valuation 67
    4. 1 Customers as the Most Valuable (Intangible) Asset 67
    4. 2 Customer Franchise Is Missing in IFRS/ US GAAP Financial Statements: How to Value It?  68
    4. 3 Describing SBEs Business Model Using Customer Metrics 69
    4. 4 Valuing SBEs Using Publicly Disclosed Customer Metrics: A Parsimonious Model to Estimate Customer Equity 71
    4. 5 Customer Equity and Stock Returns: Empirical Evidence 77
    4. 6 Beyond GAAP: Customer Metrics Reporting 79
    References 81
5 Conclusions and Trends to Look Forward 83
    5. 1 Looking Back and Looking Ahead 83
    5. 2 Linking Online with Offline Commerce 84
    5. 3 Enhanced Forms of Corporate Non–financial Reporting 85
    5. 4 The Rising Impact of Artificial Intelligence on Modeling Customer Data 86
    References 87

Series: SpringerBriefs in Accounting
Paperback: 96 pages
Publisher: Springer; 1st ed. 2019 edition (November 5, 2018)
Language: English
ISBN-10: 3030019705
ISBN-13: 978-3030019709

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