Category Archives: Customer Loyalty

Can a simple thank you note to satisfied customers boost patronage by 50%?

I found this study of Leveraging Customer Feedback to Increase Loyalty very insightful.  Please note particularly: In a large field experiment with highly satisfied customers of a Fortune 500 firm in the hospitality industry, the researchers track both customer attitudes … Continue reading

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Can proactive customer retention efforts backfire?

I found this note on “When It Comes To Retaining Your Customers, Sometimes It’s Best To Leave Them Alone” very thought-provoking.  Please note particularly: The research involved 65,000 customers of a South American wireless communications firm. Some of the participants were … Continue reading

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What is the best way to prevent customer failures?

I still find this 2006 Sloan Management Review article on How to Prevent Your Customers From Failing very timely.  Please note particularly: “Research indicates that about one-third of all service problems are caused by the customer.  As companies increasingly shift work to … Continue reading

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Should companies focus on customer acquisition or customer retention?

The choice between customer acquisition and retention is a false choice.  I recommend instead employing a diversified and balance customer lifecycle management approach with customer acquisition, onboarding, development and retention elements. Customer Acquisition, Development and Retention are very connected and have … Continue reading

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Are customers loyal to your brand or to your points?

I found the following observation by Niraj Dawar very instructive.  Please note particularly: “From a brand manager’s perspective, the question is what is a consumer loyal to — are they loyal to the brand that you’re selling or are they loyal … Continue reading

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Why do loyal customers post online reviews about products they’ve never purchased?

I found this research by MIT’s Duncan Simester on “Deception” in online reviews very insightful.  Please note particularly: “We are not sure why apparently loyal customers post negative reviews about products they have never purchased. One reason may be that … Continue reading

Posted in Consumer-Driven Innovation, Customer Collaboration, Customer Communities, Customer Feedback, Customer Insight, Customer Loyalty | Leave a comment

Towards Developing Loyalty Programs that Really Work

The following article outlines several major design considerations for developing effective customer loyalty programs: 1) Define the Purpose and Objectives of the Program From the company perspective, loyalty programs should be designed not only to improve customer retention but also … Continue reading

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