Differentiating and measuring degrees of loyalty is an evolving craft. Companies first tried to measure and manage their customers’ satisfaction in the early 1970s, on the theory that increasing it would help them prosper. In the 1980s, they began to measure their customers’ rates of defection and to investigate its root causes. By measuring the value of the customers themselves, some companies also identified high-value ones and became better at preventing them from defecting. These ideas are still important, but they are not enough. Managing migration-from the satisfied customers who spend more to the downward migrators who spend less-is a crucial next step.
Like this content? Why not share it?
There Are No Comments
Click to Add the First »
Click to Add the First »