The “Three Rs” of Customer Loyalty
Studies show that the longer customers are loyal, the more profitable they become. Why? The answer has to do with what are known as the three Rs of customer loyalty: retention, related sales, and referrals.
Retention
The first R of customer loyalty is retention. An ongoing relationship with a customer creates a steady stream of revenue over time as the customer continues to buy products. The costs associated with marketing decline. In many cases, so do the costs of actually serving the customer, because he or she has become familiar with the company, its product lines, and its procedures.
Various estimates ...
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