Product details

Few companies have systematically revamped their operations with customer loyalty in mind. MBNA credit cards and State Farm Insurance are successful because they have designed their business around customer loyalty--a self-reinforcing system in which the company delivers superior value and reinvents cash flows to find and keep customers and employees. When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up and the cost of acquiring new customers goes down. The company then can pay workers better. Increased pay boosts employee morale and commitment; as employees stay longer, their productivity goes up and training costs fall; employees'' overall job satisfaction, combined with their experience, helps them serve customers better; and customers are then more inclined to stay loyal to the company. Finally, as the best customers and employees become part of the loyalty-based system, competitors are left to survive with less desirable customers and less talented employees.