customer equity

Customer equity is the total value a business can expect to earn from all its current and future customers over time. It reflects the combined worth of a company's customer relationships, considering how loyal and satisfied customers are, as well as how much they typically spend. Building strong relationships and delivering value can increase customer equity, which ultimately boosts a company’s long-term profitability and growth potential. Think of it as the overall "value bank" created by a business's customer base.