Correspondence: Thayne Forbes, Intangible Business Limited 9 Maltings Place 169 Tower Bridge Road London SE1 3JB UK. Tel: +44 (0) 870 240 7386; Fax: +44(0) 20 7089 9239; e-mail: thayne.forbes@intangiblebusiness.com; www.intangiblebusiness.com

¹is a joint managing director of Intangible Business, the brand valuation, strategy and development consultancy. He is a dually qualified chartered accountant and marketer and has carried out over 100 intangible asset valuations for some of the world's biggest businesses. Intangible Business is a leading intangible asset valuation consultancy, valuing intangible assets for financial, litigation and business development purposes. He has worked in all major sectors, with companies including Allied Domecq, Laura Ashley, TimeWarner, Vodafone and Woolmark, and is also a member of The Academy of Experts, The Society of Expert Witnesses and The Institute of Expert Witnesses.

Received 3 December 2007; Revised 3 December 2007; Published online 7 January 2008.

Abstract

This paper considers the value of customers as an important intangible asset of a business. In fact, they are arguably the most important, for without customers a business would not exist. The strategic importance of customers is discussed and their interaction, as an asset, with other important business assets such as brands is analysed. The basic methodologies for valuing customers are then explained and their limitations are considered. For all the complicated valuation techniques value really boils down to business basics and common sense — management's ability to manage customer relationships profitably.