2016 Consulting Rankings
Firms today have the power to predict customer behavior with more accuracy than ever before. But, traditional corporate valuation techniques don’t take this into account. Professor Fader and colleagues have come up with a better way. Customer-based corporate valuation (CBCV) incorporates predicted customer behavior along with historical financial data to more accurately determine a firm’s valuation. This session will introduce CBCV by showing how it fits within traditional valuation approaches and by applying it to several publicly traded companies. This award-winning methodology is crucial for executives and investors to understand because of its potential to move markets and its ability to meaningfully connect marketing actions with financial outcomes.
Peter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. His expertise centers around the analysis of behavioral data to understand and forecast customer shopping and purchasing activities, with a special focus on topics such as customer relationship management, lifetime value of the customer, and sales forecasting for new products.
Prof. Fader is the author of Customer Centricity: Focus on the Right Customers for Strategic Advantage and co-author with Sarah E. Toms of the book The Customer Centricity Playbook. He has been quoted or featured in The New York Times, The Wall Street Journal, The Economist, The Washington Post, and on NPR, among other media. In 2017, Prof. Fader was named by Advertising Age as one of its inaugural “25 Marketing Technology Trailblazers.”
He recently co-founded the startup Theta Equity Partners, which hopes to popularize and commercialize the customer-based corporate valuation method.