The Real Value Of Customer Loyalty

Topics:
Marketing Strategy
Tags:
Marketing,
Marketing Research,
Massachusetts Institute Of Technology
Source:
Massachusetts Institute of Technology

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Overview: From the executive summary: ‘It is a marketing truism that higher buying rates and lower service costs make long-term customers more valuable. That, of course, influences what companies spend on customer acquisition and retention. According to studies, customer-lifetime-value metrics can and should inform many business decisions in the marketing realm and beyond. In fact, looking at management decisions through the lens of customer value can generate surprising new perspectives and often overturn conventional wisdom.’ The paper examines this issue. In this context, customer-lifetime value concept is also discussed.

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Format: PDF | Size: 16KB | Date: Jan 2003 | Pages: 2

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