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Question 342 - CSCP discussion

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The most effective means to measure customer loyalty would use which of the following approaches?

A.
Determine the ability to satisfy a customer's delivery date
Answers
A.
Determine the ability to satisfy a customer's delivery date
B.
Conduct customer survey for direct feedback
Answers
B.
Conduct customer survey for direct feedback
C.
Analyzing customer repurchase patterns
Answers
C.
Analyzing customer repurchase patterns
D.
Monitor rate of call center activity
Answers
D.
Monitor rate of call center activity
Suggested answer: C

Explanation:

The most effective means to measure customer loyalty is by analyzing customer repurchase patterns. This method provides insights into the actual buying behavior of customers and indicates their level of loyalty. Key points include:

Behavioral Indicator: Repurchase patterns reflect actual customer behavior and are a direct indicator of loyalty, as loyal customers tend to make repeated purchases.

Quantifiable Data: This approach relies on quantitative data that can be tracked over time, allowing for objective measurement and analysis.

Predictive Power: Historical repurchase patterns can help predict future purchasing behavior and identify trends in customer loyalty.

Long-term Relationship: Consistent repurchasing signals a long-term relationship with the customer, indicating satisfaction and trust in the company's products or services.

Reichheld, F. F. (2003). The One Number You Need to Grow. Harvard Business Review.

Kumar, V., & Shah, D. (2004). Building and Sustaining Profitable Customer Loyalty for the 21st Century. Journal of Retailing.

asked 16/09/2024
PANAGIOTIS SYKAS
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