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My Take: Does Loyalty Matter?
Gary Lemke, Chief Customer Advocate   (January 29, 2013)
 
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When one observes an installed based that remains intact over time, one is often led to believe that it is the result of loyalty building. Yesterday, I noted that an intact installed base may also be the result of switching costs that make it difficult to defect.
 
If you have a customer base that continues to spend with you instead of the others guys does it matter if it is the result of loyalty earned or switching costs?
 
Does loyalty matter? Is it over-rated?
 
From a business perspective, what happens when investments in switching costs - making it difficult for customers to defect - drive more sustained revenue per investment dollar than loyalty programs? Does loyalty matter?
 
  What's your take?
 
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