Tracking Customer Loyalty

For maintaining customers’ loyalty it is very important by organizations to track their loyalty. Following are the two methods of tracking customer loyalty:

1. Loyalty tracking on time scale: Loyalty can be tracked on linear time scale. This includes preparing time scale graph which shows the loyalty trend of customers in accordance to time. The graph is normally created when the supplier evaluates that customer is showing less interest in buying and the time gap between each buy is gradually increasing. When the graph goes from secured to lost stage, it is important for the organization to identify corrective measures to retain the customer back to track. When the corrective measure works efficiently the graph again moves towards secured level in the coming future which indicates that the supplier is gaining customer loyalty again and there are fewer chances for the customer to divert to other options. This is a simple but powerful technique to track customer loyalty in-house without employing external resources. However this is not an accurate method to track customer loyalty but it shows the trend if the correctives measure taken to retain customer is working efficiently or not. Changes in the loyalty is normally seen after tracking loyalty on time scale but the details are not exactly focused and does not accurately provide the actually loyalty variation of the customer to supplier. This process is normally implemented

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Customer Relationship Management