Title: mismanagement of customer loyalty

Essay Details

Subject: Business
Author: Nicole K
Date: December 11, 2015
Level: University
Grade: A
Length: 20 / 5732
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

After running the scheme for five years, the company was able to determine the profitability of each of its accounts over time. Executives were curious to see just what payoff they were getting from their $2 million annual investment in customer loyalty. The answer took them by surprise. About half of those customers who made regular purchases for at least two years-- and were therefore designated as "loyal"-- barely generated a profit...

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About half of those customers who made regular purchases for at least two years-- and were therefore designated as "loyal"-- barely generated a profit. Conversely, about half of the most profitable customers were blow-ins, buying a great deal of high-margin products in a short time before completely disappearing...

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