Return on Insights

Crosby, Lawrence A.; Johnson, Sheree L.
May 2005
Marketing Management;May/Jun2005, Vol. 14 Issue 3, p14
This article discusses the role of customer loyalty insights in the realization of investment returns. In the 1980s, many companies changed their view toward an emphasis on the customer. Enlightened firms started to pay more attention to the wishes and needs of customers, rather than simply trying to sell them more products or services. The result was a change in how marketing was viewed. The most progressive companies have gone through a further change in their view of the customer and now focus on building long-term relationships and customer loyalty. Their concentration is not merely on achieving short-term customer satisfaction but rather on developing solid, long-term relationships in which customers exhibit loyalty behaviors well into the future. This requires an in-depth understanding of the motivating forces of customer loyalty behaviors. An organization must discover and understand how a customer's experience causes a behavioral reaction. Organizations must also understand the emotional motivations of the loyalty behaviors. This explicit inclusion of emotional motivation in understanding customer loyalty is significant, especially when you consider that most customer satisfaction frameworks are biased toward rational motivation. A disciplined process for driving resource allocation decisions with customer loyalty insights should include: gleaning customer insights; setting short-term and long-term priorities, based on customer insights; cross-functional planning; and performance monitoring.


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