“It's customer loyalty, stupid”: Nurturing and measuring what really matters

Abstract For the last ten years, companies have focused on customer satisfaction that will eventually lead to profit improvement. But the results have been disappointing. An emphasis on customer satisfaction is not enough to ensure success. Customer loyalty should factor far more prominently in the equation. This article details a dozen principles that work to nurture customer loyalty and focuses on various methods of measuring both customer satisfaction and customer loyalty. It also explains how organizations can establish a single parameter reflecting customer satisfaction and/ or customer loyalty.