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Focusing on Your Customer
book

Focusing on Your Customer

by Harvard Business School Press
November 2010
Intermediate to advanced
112 pages
1h 21m
English
Harvard Business Review Press
Content preview from Focusing on Your Customer

Understanding How Customer Loyalty Affects Profitability

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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 ...

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Publisher Resources

ISBN: 9781422172599