Customer Loyalty and Customer Lifetime Value | CustomerThink

Customer Loyalty and Customer Lifetime Value | CustomerThink

Customer Loyalty and Customer Lifetime Value

By Bob E. Hayes, Ph.D., Business Over Broadway





Customer loyalty and customer lifetime value are two
different, yet related, areas of study. The purpose of this discussion
is to outline each area and highlight how knowledge in both areas is
necessary to better understand how to grow a company. Companies
are not static entities; they make business decisions in hopes to
increase customer loyalty and grow their business. The key to business
growth is to make decisions that will improve customer loyalty.
Customer loyalty management is the practice of determining how to
maximize customer loyalty. To understand how improvements in customer
loyalty will improve business growth, we need to first understand the
value of customers to the organization.

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