The power of customer loyalty and its measurement

Savica Dimitrieska ()
Additional contact information
Savica Dimitrieska: International Balkan University, Faculty of Economics and Administrative Sciences, Republic of North Macedonia

Entrepreneurship, 2024, vol. 12, issue 2, 102-119

Abstract: The most important asset of the company is the loyal customers, thanks to which the company ensures its functioning and the constant income. Loyal customers not only repeatedly buy company’s products and services but also are important ambassadors of the company who spread positive news about its offerings. It is known in the literature that retaining existing customers is cheaper and more profitable than attracting new customers. Hence every company should take care of existing customers. But how a company can measure their loyalty? A single measure cannot provide a complete picture of consumer loyalty. Therefore, this paper elaborates on several measures that provide insight into the strength of customer relationship. With the usage of secondary data, certain financial, engagement, behavioral and additional metrics of customer satisfaction and loyalty are processed. By using multiple measures, a company can track, build and maintain customer loyalty and satisfaction and ensure long-term success and growth.

Keywords: customer loyalty; financial metrics; engagement metric; behavioral metrics; customer satisfaction (search for similar items in EconPapers)
JEL-codes: M30 M31 M37 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ep.swu.bg/images/pdfarticles/2024/Num.9_EP ... eview_30.10.2024.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:neo:epjour:v:12:y:2024:i:2:p:102-119

DOI: 10.37708/ep.swu.v12i2.9

Access Statistics for this article

More articles in Entrepreneurship from Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD Contact information at EDIRC.
Bibliographic data for series maintained by Vladislav Krastev ().