Linking Customer Loyalty to Growth Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Recently, consultants and researchers have improved a number of customer metrics to explain the links between increase and customer behavior. But these attempts have created more smoke than heat. Despite claims to the contrary, the authors assert the most popular metrics have demonstrated only modest correlations to increase. None of them seem to be universally successful across all surroundings that are competitive. Early customer metrics try to give details why people buy. To numerous company, it came down to marketing. As the authors explain, the issues that affect customer loyalty are complex and go beyond standard marketing.

This gave rise to a fresh category of metrics targeted at understanding customer experience. Although supervisors have learned a lot about the elements of service quality (including reliability, responsiveness and empathy), the approach doesn't point supervisors to special activities t. Commencing in the 1990s, many managers started paying closer attention to customer retention -- particularly, comprehending gratification and dissatisfaction. Today's most popular metric, the Net Promoter Score, focuses on how customer word of mouth -- both positive and negative -- can progress increase. Urbanized by Bain & Company Inc. consultant Fred Reichheld, it maintains the ability to predict future increase from customer replies to one question: "How likely is it that you'd recommend this business to a friend or co-worker?" The writers are suspicious that there can be a single metric that reduces complex, multifaceted concepts to one or two measurements; if there is, they write, "there is a good chance it'll dismiss one or more important facets of the equation."

PUBLICATION DATE: July 01, 2008 PRODUCT #: SMR287-HCB-ENG

This is just an excerpt. This case is about SALES & MARKETING