Customer Loyalty -- a Critique Article Critique

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90).

Pros and Cons of the findings

The authors of Zero defection: Quality comes to service found out that there was tripling of the profits generated by one customer from in the fourth year than in the first year and this shows the advantages of loyalty because it leads to increased profits. All this profit is lost whenever the customer defects from the company. This increased profitability with loyalty is also evident in the credit card finding. The customer who is newly acquired generates only the base profit when using the card at first but after the second year, there will be improved economics. The usage increases as they become more familiar with the services. The disadvantage of these findings is that the profitability puzzle does contain many pieces and a direct association with loyalty is never definite (Ranaweera, 2007, p.115). One advantage in the findings from the article The Mismanagement of customer loyalty is that customers who spent more on the company are actually the first time buyers who bought made high purchases on goods with high margin rather than the longstanding loyal customers.

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This can essentially justify the budgeting allocation for the attracting of new customers. The disadvantages of the longstanding customers are more expensive to maintain than non-loyal customers, indicates that the company will be spending more in the aim of customer retention.

Relevance to future marketers

Future marketers will be able to develop novel ways of evaluating the profitability and loyalty relationship so as to know which customers to specifically focus on and which one to ignore. This is because from the findings of the article The Mismanagement of customer loyalty, the relationship between profitability and loyalty was found to be.....

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"Customer Loyalty -- A Critique" (2010, April 06) Retrieved June 5, 2026, from
https://www.aceyourpaper.com/essays/customer-loyalty-critique-1403

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"Customer Loyalty -- A Critique", 06 April 2010, Accessed.5 June. 2026,
https://www.aceyourpaper.com/essays/customer-loyalty-critique-1403
   

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