In conjunction with these factors there needs to be a continual focus on increasing the quality of service as well, often using metrics including Service Quality Index (SERVQUAL) to quantify the performance of customer loyalty programs over time. At present the company being evaluated in terms of their use of customer loyalty is entirely focused on service lifecycle management and warranty cost management. They see customer loyalty purely from the standpoint of how to create ongoing sales, not necessarily increase customer lifetime value by motivating customers to return and purchase more. This has had a corresponding effect of creating attrition in the customer base over time and lost sales. What is needed is a concerted strategy that takes into account unmet needs of customers and responds to them innovatively with exciting products and services to drive up lifetime customer value over time.

Conclusion

CRM serves as a foundational series of strategies on which customer loyalty and many other programs rely on. The integration...

For the company being evaluated from this study, their need is to architect better, more efficient programs for translating lessons learned into more effective strategies for creating valuable experiences for their long-term customers. By focusing on their unmet needs and requirements will they be able to increase lifetime customer value (Schmitt, Skiera, Van den Bulte, 2011)
Reference

Marshall, N.. (2010). Commitment, Loyalty And Customer Lifetime Value: Investigating The Relationships Among Key Determinants. Journal of Business & Economics Research, 8(8), 67-84.

Wei-Ming Ou, Chia-Mei Shih, Chin-Yuan Chen, & Kuo-Chang Wang. (2011). Relationships among customer loyalty programs, service quality, relationship quality and loyalty. Chinese Management Studies, 5(2), 194-206.

Schmitt, P., Skiera, B., & Van den Bulte, C.. (2011). Referral Programs and Customer Value. Journal…