THE STRATEGIC POWER OF CUSTOMER RELATIONSHIPS: LEVERAGING LOYALTY TO CREATE VALUE

In an increasingly complex economic and market scenario, building quality customer relationships is a necessary condition for business success. Given all the resources required to retain customers, there is a need to demonstrate how customer loyalty affects the consistency and durability of revenue streams and, consequently, the value of the company. In particular, greater customer loyalty leads to longer-term relationships, which in turn generate higher profits, shore up the firm’s competitive position, and reduce future cash flow risk