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Note 22Loyalty-Based
Marketing, Customer
Acquisition, andCustomer Retention
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The Logic of Loyalty
Loyal customers: Provide the base profit that all customers presumably
deliver Buy more Cost less to serve Provide referrals Pay a price premium Spread their initial “acquisition cost” across more
occasions
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© 2012 Pearson Education, Inc. publishing Prentice Hall.
The Logic of Loyalty
The ambiguous relationship between loyalty and referrals is clarified by the difference between “attitudinal loyalty” and “behavioral loyalty”
Attitudinal loyalty – customers really like the product or brand and recommend it to others
Behavioral loyalty – customers stay with company or brand for unflattering reasons
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Figure Note 22-1 - Why Loyal Customers Are More Profitable
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Figure Note 22-3A - Returns on Investments in Customer Retention
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Figure Note 22-3B - Profits on Investments in Customer Retention
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Figure Note 22-2 - Customers Differentiated by Loyalty and Profitability
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Tools of Customer Loyalty:Improving Customer Satisfaction
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