Lessons in Customer Commitment

Lessons in Customer Commitment

Every company talks about putting the customer first, but it’s not that easy to do. Learn how to nurture customer relationships, deliver on promises and innovate beyond the familiar. Get three of the most read and discussed articles from MIT SMR's quality & service archive.

Articles included with this collection:

Do Customer Loyalty Programs Really Work?
Grahame R. Dowling and Mark Uncles

Why Customer Participation Matters
Omar Merlo, Andreas B. Eisingerich and Seigyoung Auh

Is Your Company As Customer-Focused As You Think?
Patrick Barwise and Seán Meehan

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Do Customer Loyalty Programs Really Work?

The contention that loyal customers are always more profitable is a gross simplification, according to the authors. They posit that such schemes do not fundamentally alter market structure and, instead, increase market expenditures without really creating any extra brand loyalty. Dowling and Uncles suggest ways to design an effective program.
Merlo-1000

Why Customer Participation Matters

These days, many businesses are focused on increasing customers’ positive word of mouth. But emphasizing customer participation — such as providing feedback or suggestions — may be a more important vehicle for generating valuable repeat business. As one COO said, “Levels of feedback is a way we identify our most profitable customers. Those that bother to write to us do care. And they do spend money with us.”

Courtesy of Procter & Gamble

Is Your Company As Customer-Focused As You Think?

To become a customer-focused organization requires senior executives to open up communication with people throughout the organization so they can hear what is actually going on — as opposed to a sanitized version. Few companies make this leap, even though not doing it can hurt long-term performance. However, managers can come to terms with their company’s weaknesses in the realm of customer focus by posing a set of five questions specifically designed to uncover their vulnerabilities.