The Loyalty Effect

The consumer is all too prepared to shift loyalties and at times spread over loyalties across various brands. Fred Reichheld in his bestselling book The Loyalty Effect, says: “Raising customer retention rates by 5% could increase the average value of the customer by 25- 100%.” According to Michael Porter: “Loyalty creates a barrier by forcing market entrants to spend heavily.” Malls seem to have created a new challenge for marketers as far as brand loyalty is concerned. Consumers are getting even more unpredictable. Interference in buying habits take place as a consumer walks past shelves and racks of different displayed products. This has led to a shift from mere intra-category to inter-category rivalry. Consumers are not just shifting brands within a category; they are shifting from one product category to another.


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Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006

Rashmi Bansal Publisher Of JAMMAG Magazine Caught Red-Handed, for details click on the following links:-

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)