Publications

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May 2009
Article

Customer-Based Valuation

By: Sunil Gupta

Customer lifetime value (CLV) has emerged as an important metric to manage and grow customers. Marketing scholars have written many books and articles on this topic. However, most of this research has focused on tactical marketing decisions. While this is important, it... View Details

Keywords: Customers; Valuation

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September 2016 (Revised February 2017)
Case

MyTime

By: Juliane Begenau and Robin Greenwood

Ethan Anderson, the CEO of San Francisco–based e-commerce company MyTime, must decide on the company's growth strategy. MyTime’s first product was a website and mobile app that offered consumers a convenient way to book appointments with local merchants throughout the... View Details

Keywords: Customer Valuation; Discounted Cash Flow; Software; Valuation Methodologies; Subscriber Models; Financial Management; Corporate Finance; Growth and Development Strategy; Valuation; Applications and Software; Information Technology Industry; North and Central America

04 Mar 2002
Research & Ideas

Don’t Lose Money With Customers

products and services to each customer over time. Second, they need to be clear about how to sell the same product or service simultaneously to customers that have very different View Details

Keywords: by Peter K. Jacobs

18 May 2007
Working Paper Summaries

An Empirical Approach to Understanding Privacy Valuation

Keywords: by Luc Wathieu & Allan Friedman

June 2017 (Revised January 2019)
Case

Signet Jewelers: Assessing Customer Financing Risk

By: Gerardo Pérez Cavazos, Suraj Srinivasan and Monica Baraldi

Marc Cohodes, a renowned short seller, has identified weaknesses in Signet's business strategy, which he argues is heavily reliant on providing loans to customers with subprime credit scores. He believes that the company accounts for its receivables portfolio using... View Details

Keywords: Short Selling; Bad Debt Expense; Accounting; Financial Reporting; Financial Statements; Finance; Financing and Loans; Valuation; Retail Industry; Financial Services Industry; United States

June 2001
Case

Bang Networks- The First Customer (A)

By: Jay O. Light and Mary N. Caravella

In November 2000, six-month-old start-up Bang Networks is preparing a proposal for its first paid subscription contract. The recent MBA founders of the new San Francisco--based company believe they have a unique new solution for effective delivery of real-time Web... View Details

Keywords: Business Startups; Negotiation Tactics; Internet and the Web; Valuation; Value Creation; Negotiation Preparation; Information Technology Industry; San Francisco

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January 2013 (Revised April 2015)
Case

Affinity Labs: Valuing Customer Growth

By: Joseph B. Lassiter III and Elizabeth Kind

In November 2006, Chris Michel left Military.com, which he founded in 1999, to start Affinity Labs, a global network of online communities. That month, Michel raised a Series A round of venture funding and established a partnership with Monster, which he had sold... View Details

Keywords: Mergers and Acquisitions; Business Startups; Entrepreneurship; Demand and Consumers; Partners and Partnerships; Social and Collaborative Networks; Online Technology

October 2009 (Revised June 2011)
Case

Zappos.com 2009: Clothing, Customer Service, and Company Culture

By: Frances X. Frei, Robin J. Ely and Laura Winig

On July 17, 2009, Zappos.com, a privately held online retailer of shoes, clothing, and other soft line retail categories, learned that Amazon.com, a $19 billion multinational online retailer, had won its board of directors' approval to offer to merge the two companies.... View Details

Keywords: Mergers and Acquisitions; Customer Focus and Relationships; Decision Choices and Conditions; Governing and Advisory Boards; Service Delivery; Organizational Culture; Internet and the Web; Valuation; Apparel and Accessories Industry; Retail Industry

Web

Managing Customers for Growth - Course Catalog

insights, and tools to successfully acquire, develop, and retain customers. · Understand the dynamics of customer value, which are critical for firm valuation and growth assessment. · Explore technologies... View Details

Research Summary

Overview

By: Rob Markey

Most companies' leaders declare their commitment to delivering value to customers. Many have adopted language such as "customer-centric" or "customer-obsessed." Companies that consistently earn top marks for customer loyalty in their industry deliver total shareholder... View Details

Keywords: Customer Base Analysis; Customer Lifetime Value; Customer Experience; Customer Loyalty; Service Profit Chain; Management Accounting; Project Evaluation And Resource Allocation; Customer Value and Value Chain; Customer Satisfaction; Valuation; Customer Focus and Relationships

January 2023
Case

EKI Energy Services: One Billion Carbon Credits

By: George Serafeim

Within nine months from the time of its Initial Public Offering (IPO) in April of 2021, EKI Energy Services (EKI) shares had increased by more than 8,000%. Equally explosive was the growth of the company’s revenues and Earnings Before Interest, Taxes and Depreciation... View Details

Keywords: Carbon Credits; Carbon Emissions; Growth; Business Analysis; Environmental Sustainability; Corporate Valuation; Climate Change; Accounting; Valuation; Transition; Renewable Energy; Analysis; Product Positioning; India

August 2018 (Revised February 2023)
Case

Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

By: Jill Avery and Ayelet Israeli

As its Series A extension round approaches, the founders of Hubble, a subscription-based, social-media fueled, direct-to-consumer (DTC) brand of contact lenses, are reflecting on the marketing strategies that have taken them to a valuation of $200 million and debating... View Details

January 2017 (Revised October 2021)
Case

Delivering the Goods at Shippo

By: Jeffrey J. Bussgang, Jeffrey F. Rayport and Olivia Hull

Laura Behrens Wu, CEO of software start-up Shippo, prepares her pitch for a Series A funding round following a successful seed round. Customer adoption of Shippo’s e-commerce dashboard application, which allows small and medium retailers to compare delivery rates... View Details

January 2019 (Revised February 2024)
Teaching Note

Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

By: Ayelet Israeli

Teaching Note for HBS No. 519-011. As its Series A extension round approaches, the founders of Hubble, a subscription-based, social-media fueled, direct-to-consumer (DTC) brand of contact lenses, are reflecting on the marketing strategies that have taken them to a... View Details

2017
Working Paper

Why and How Investors Use ESG Information: Evidence from a Global Survey

By: Georgios Serafeim

Using survey data from a sample of senior investment professionals from mainstream (i.e., not SRI funds) investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. The primary reason... View Details

Keywords: Investment Management; Sustainability; ESG; ESG (Environmental, Social, Governance) Performance; Investment Fund; Investment Strategy; Corporate Accountability; Activist Shareholder; Engagement; Environment; Climate Change; Customers; Customer Satisfaction; Employee Engagement; Global Warming; Investment; Decision Making; Environmental Sustainability; Performance Expectations

SSRN

September 2003
Case

Valuing a Cross-Border LBO: Bidding on the Yell Group

By: Mihir A. Desai, Paolo Notarnicola and Mark Veblen

A team of private equity investors must value the leveraged buyout of a Yellow Pages business that operated in both the United States and the United Kingdom. In the process, they must wrestle with issues of how to conduct cross-border valuations and how to value a... View Details

Keywords: Leveraged Buyouts; Cash Flow; Private Equity; Cross-Cultural and Cross-Border Issues; Valuation

2020
Working Paper

Determinants of Early-Stage Startup Performance: Survey Results

By: Thomas R. Eisenmann

To explore determinants of new venture performance, the CEOs of 470 early-stage startups were surveyed regarding a broad range of factors related to their venture’s customer value proposition, product management, marketing, technology and operations, financial... View Details

Keywords: Startups; Survey Research; Performance Analysis; Entrepreneurship; Performance; Analysis; Business Startups; Failure; Surveys