The mismanagement of customer loyalty
By: REINARTZ, Werner
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Contributor(s): KUMAR, V.
Material type: 
ArticlePublisher: jul.2002Harvard Business Review 80, 7, p. 86-94Abstract: Much of the common wisdom about customer retention is bunk. To get strong returns on relationship programs, companies need a clearer understanding of the link between loyalty and profits. Who wouldn't want loyal customers? Don't they bring in all the profits? New research says no. Not all loyal customers are profitable, and many disloyal ones are highly valuable. A new approach to customer segmentation can tell you which customers are worth courting and how to make the moswt money serving them
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Much of the common wisdom about customer retention is bunk. To get strong returns on relationship programs, companies need a clearer understanding of the link between loyalty and profits. Who wouldn't want loyal customers? Don't they bring in all the profits? New research says no. Not all loyal customers are profitable, and many disloyal ones are highly valuable. A new approach to customer segmentation can tell you which customers are worth courting and how to make the moswt money serving them
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