The powerful economics of customer loyalty in Australia
Katrina Bradley and Richard Hatherall
Bain & Company | Insights | July 29, 2013
It’s nice to have satisfied customers who make repeat purchases. But apart from the general brand glow that comes from loyal customers, why should a company care about loyalty?
Because greater loyalty spurs sustained growth. Bain & Company’s ongoing research on value creation consistently shows that public companies with superior sales and profit growth, and whose earnings exceed their cost of capital, have twice the level of customer advocacy as companies with average or inferior performance.