Why Loyalty matters

'To be considered loyal, it shouldn’t be enough for a customer to feel a bond to a company, or to simply stick with the relationship. It should also require certain actions, or shopping behaviors, on the part of the customer.

Most corporate measures of customer loyalty focus only on feelings. But our research shows that knowing how customers feel about a company is a poor predictor of how they will behave toward the company. If data about buying behaviors are added to the mix, it can help a company identify not just who its truly loyal customers are, but which ones are profitable.'

- Tim Keiningham et al., 'Why a Loyal Customer Isn’t Always a Profitable One'.

Note: Timothy Keiningham and Lerzan Aksoy have a book out on 'Why Loyalty Matters'. Know about it here and here.


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