Episode 16 - The Loyalty Economy - Harvard Business Review article
The Loyalty Minute3 Jan 2020

Episode 16 - The Loyalty Economy - Harvard Business Review article

Welcome Loyal listeners, in today’s episode of the loyalty minute we’re going to be looking The Loyalty Economy. In the most recent issue of the Harvard Business Review (which you can find the link to the full article at theloyaltyminute.com) you’ll find fascinating and interesting insights as to how you can determine tangible value to customer loyalty, particularly in a publicly traded company. But it can also be useful for any company looking to determine the true value of customer loyalty.

While is it not recognized GAAP accounting methodology yet, there are some pretty good arguments as to why and how it might become one. Of course since we only have a minute here, I can’t get into the nitty gritty details, but I think you’ll find it is a good read.

While qualitative measures such as Net Promoter and customer satisfaction scores are also of use to investors in assessing customer loyalty, companies would need to source such measures from independent third parties that publish their methodology and present them in consistent formats.

One important take away is, Companies earn loyalty when they anticipate and meet fundamental, often unexpressed, customer needs. Doing this depends on two sets of capabilities: design thinking (or better yet, outstanding customer experiences) and careful application of cutting-edge technologies.

To learn more about this, and a ton of other customer loyalty insights, please visit theloayltyminute.com Enjoy!

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