Lessons in Loyalty

Abstract:All behaviors representing customer loyalty are manifestations of the three general components of customer loyalty: retention, advocacy and purchasing, or RAPID. Customer loyalty leads to financial growth for a company. While the management of customer survey data has advanced over the years, there is still little scientific basis for the formation and interpretation of customer loyalty survey questions. A factor analysis of a typical customer satisfaction survey in the wireless service industry shows that the 11-question survey actually measures the three components of retention, advocacy and purchasing. Aggregating these questions by component leads to three measures, the retention, advocacy and purchasing loyalty indices (RLI, ALI and PLI), which combine to form the RAPID loyalty measurement approach. Surveys of five studies across the wireless provider, PC manufacture and insurance industries indicate the correlation of RAPID loyalty measurements to growth across all three stages of the …

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Another top-echelon article from Dr. Hayes. Topical and actionable ... one cannot ask for more.

--Garry Schultz, 03-18-2011

Excellent article. Advances the study of loyalty to a new level.
--Barry Johnson, 03-11-2011

--charles, 03-08-2011

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