Understanding How Customer Loyalty Affects Profitability
As we’ve mentioned, customer loyalty has a direct impact on a company’s profitability. To understand how this works, next we take a closer look at two important concepts: the lifetime value of a customer and the service-profit chain.
Calculating lifetime value of a customer
Once an organization targets its customers and begins to meet and exceed their expectations, customer satisfaction rises. Loyalty follows, bringing with it a significant and measurable impact on the bottom line.
In a recent study conducted across a wide range of service industries, experts found that relationships with ...
Get Focusing on Your Customer now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
