08-23-2008, 09:54 AM
Quote:Do loyal customers translate into steady sales or profits? Intuitively, the answer should be yes -- and indeed, customer loyalty is a significant metric by which companies rate their performance. However, there a few problems with the concept of customer loyalty and a corporate strategy to develop it, according to Esteban Kolsky, practice leader with eVergence.
For one thing, customer loyalty is difficult to measure. Two, even if it were easy, it doesn't necessarily add to a company's bottom line. "You can still have great customer satisfaction and loyalty and still have a 45 percent churn in your customer base," he told CRM Buyer.
Kolsky is a recent convert to the thinking that customer loyalty is the wrong goal for companies. It was only after working with several clients that he decided loyalty does not automatically translate into a higher likelihood of repeat purchases...
full article: http://www.crmbuyer.com/story/64206.html