Building customer loyalty is a continuing process. It begins with a quantitative measurement of customer data which produces customer loyalty profiles. These profiles are analyzed to determine the actions required to improve loyalty. When the measure/analyze/act cycle is complete, it starts again with new data that begins to measure results of the loyalty initiatives.
There is, in general, a high degree of correlation within a purchase data set. Long-time accounts tend to make more purchases, spend more, and buy a wider selection of products and place orders more frequently. So, the traditional loyalty indices – total amount, number of purchases, number of products, retention (duration of customer relationship), or… Read More