Calculating the value of customers’ referrals

Research output: Contribution to journalArticlepeer-review

28 Scopus citations


Word-of-mouth is a rarely quantified phenomenon, in spite of its importance for service firms. Therefore, referrals remain a neglected determinant of customer lifetime valuation, although some authors claim them to be the astronomical part of customer equity. The paper discusses different approaches to the calculation of positive word-of-mouth, leading to a monetary referral value of a company’s customers.

Original languageEnglish (US)
Pages (from-to)124-133
Number of pages10
JournalManaging Service Quality: An International Journal
Issue number2
StatePublished - Apr 1 2003


  • Customer satisfaction
  • Recommendations
  • Service quality

ASJC Scopus subject areas

  • Strategy and Management


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