A DEA-based approach to customer value analysis

Firms have become increasingly customer-centric, implying that customers, rather than products, are treated as the most important asset of a firm. The switch to customer-centric strategies also implies firms collecting an enormous amount customer-related data. purpose this paper is propose DEA-based methodology determine contribution customer segments firm value. We show practical usefulness our through application Activity Based Costing (ABC) data collected from large European telecom provider, which offers fixed telephone, mobile digital television and internet subscriptions. Our analysis reveals average cost reduction potential across all amounts 1.26% total controllable costs, represents approximately EUR 5 million when expressed in monetary terms. document substantial variation segments.