Chipotle's Customer Equity Profile

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1plified business strategy. Without the heavy usage of customer data,

3. Conduct an assessment of the company’s customer equity profile, with comparisons to competitors in its largest target markets.
Customer equity is the total customer lifetime value of all of the company’s customers. The greater the customer equity, the greater the future revenue in the lifetime of its clients, which results in more money from the company’s customers on average. We will assess Chipotle’s customer equity through three aspects – Value equity (value of product and service), Brand equity (value of brand) and Retention equity (tendency of a customer to stick with the brand even when prices rise).

The values of product at Chipotle is relatively higher …show more content…

Focusing on service, although the aggregate service values are low because the contact between employees and customers only occur when …show more content…

At the aspect of individual customers, Chipotle targets customer 18 to 34 year-old. According to the data, there are 59.7% customers are female and 40.3% customers are male. Furthermore, 44% of all customers are college educated, and 69% of all have no children. We can interpret that college students and office workers may choose Chipotle as their fast-lunch options. However, more than half customers have no children, which means most of married customers and who also have one or more children are not willing to take their families to Chipotle for meals. The reason for such a phenomenon may be that Chipotle are much regarded as business-casual restaurants, and customers prefer to have meals in Chipotle by themselves or with their classmates and colleagues instead of with families. To expand their customer portfolio, Chipotle can try to attract customers who have families, providing services or meal options for children. On the business side, Chipotle corporate with Tapingo, a mobile commerce application that provides ordering and delivering services with college students. So that Chipotle can expand their markets and have more potential customers.

In terms of pricing, Chipotle charges a premium price. To sustain the high-quality food, the costs of raw materials will go up, and Chipotle will increase their prices by small increments if the situation is necessary. On the other aspect,

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