Jul 22 2009

Why a Customer isn’t always a profitable one – Wall Street Journal

A lot of companies look at customer loyalty the wrong way.

Without question, loyalty is important. Loyal customers hang on for years, devote a larger share of their wallet to the company, and recommend the company to their friends. Customer loyalty, in short, helps drive profits.

But what too many companies fail to understand is this: Loyalty does not always equal profits. In fact, many companies don’t know how to recognize—and thus encourage—the kind of customer loyalty that’s really worth having.

http://online.wsj.com/article/SB20001424052970203353904574149041326829628.html


Jul 22 2009

Can customer loyalty be a bad thing? Definitely!

Check out our article on the topic on Harvard Business Online.

http://blogs.harvardbusiness.org/cs/2009/05/when_customer_loyalty_is_a_bad.html