Do you know when to lose a customer?
15 September 2011 Leave a comment
A loyal customer is a profitable customer, right? Wrong! Or at least, not necessarily. According to research by Reinartz and Kumar reported in HBR, July 2002, there is a very weak correlation between loyalty and profitability, yet businesses still spend big to engender loyalty. Are you investing in the most profitable customers? This article entitled ‘Mismanagement of Loyalty‘ details the research and recommends clear strategies for optimising ROI from your customers.
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