The destination for every organization is to cultivate a customer base that is fiercely loyal to its brand. The pathway to customer loyalty derives from a sound relational exchange that progress to a strong relationship quality. The enterprise utilize CRM tools to manage customers’ data and interactions with the aim of strengthening the relationship with the customer to possibly a long term or life long experience. Indeed, strong relationship quality creates filial bond of friendship that tended to generate positive valence between the customer and the organization which intrinsic attractiveness often lead to favourable disposition of mutual trust and respect.
The objective of the organization is to sustain the customer's loyalty and pprogress this to customer lifetime value (CLV) for each customer. This should manifest a customer base of lifetime commitment, mutual friendship and fidelity to the firm where the customers become ambassadors of the firm and the net promoter score (NPS) card should continue to indicate the improvements in customers commitment and loyalty. The main objective of CLV is to identify and specify the important level of each customer in the company to enable the firm to separate its customers for customization, know what investment volume to undertake on each customer category and what the expected future stream of cash flows from the customer is. Most businesses incline to the Pareto rule where 80% of its revenues emanates from 20% of the customers. In this light, a CLV computation will facilitate the group of customers to which resources should focused on in view of their relative importance to the business. Understanding the level of customer loyalty to your business is a strategic tool for planning market growth strategies, brand improvement and efficient resource allocation decison making. We will walk along with you in this journey to appreciate better the level of your customer loyalty and utilize this to differentiate your business model.