The key challenge facing companies today is to build relationships with customers of such high quality and intimacy that those relationships create promoters and fuel growth.

Strong and lasting relation with brand is crucial.

A strong relationship based on trust between brand and customers ensures not just loyalty but also advocacy and durable growth.

Passive loyalty, due to exit barriers or inactivity, is no longer attractive to companies. A passive loyal customer is tone who will shortly be lost.

Advocates are profitable customers: they guarantee higher profits over longer periods.

The advantages of committed customers:

TURNOVER

Constant and increasing turnover
“Highest customer loyalty companies grow at twice the rate of their competition.” (Reichheld, 2006)
Advocates buy more and more often
“Raising customer retention rates by just 5% could increase the value of an average customer by 25% to 100%.”
Premium price
“5% improvement in customer retention translates into a doubling of margins.”
Cross selling

COSTS

Low managing costs
Low promotional costs

OTHER

Positive word of mouth
Employee motivation
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