Customer Equity. Customer Equity Is Essential To The Continued

Given such a turbulent business environment, building relationships with important stakeholders is crucial to a firm’s well-being. Both customers and employees are major concerns for firms that want to develop loyalty and competitive advantages. The challenge for long-run success in business is to continually increase the customer’s dependence on the company to provide products in an environment of mutual respect and perceived fairness. Creating mutually beneficial exchange relationship with customers mean that both parties work together to understand needs and develop trust.

Class Pass hopes to achieve another 10% for the next 2 semester to reach a total of 17% by year 3 . Currently in the year 2017, there are 33,198 students enrolled in CSU with an average growth rate of 1% each semester. With the emerging college student enrolments, Class Pass can capture more of the population with aggressive promotions and word-of-mouth advertising strategies throughout the next 3 years. Furthermore, we will expand to other universities on the second semester. Lastly, Class Pass hopes to acquire a minimum of 95 advertisers to purchase our advertising packages for the

Decrease customer acquisition costs, measured by a decrease in marketing costs divided by the number of new customers.

If X is the weight of school children sampled in a nationwide study, then X is an example of

CUSTOMER LOYALTY DRIVES PROFITABILITY AND GROWTH: To maximize profit, managers have pursued the Holy Grail of becoming number-one or -two in their industries for nearly two decades. Recently, however, new measures of service industries like software and banking suggest that customer loyalty is a more important determinant of profit (see Frederick F. Reichheld and W. Earl Sasser, Jr., “Zero Defections: Quality Comes to Services,” HBR September–October 1990). Reichheld and Sasser estimate that a 5% increase in customer loyalty can produce profit increases from 25% to 85%. They conclude that quality of market share, measured in terms of customer loyalty, deserves as much attention as quantity of share.

In statistics, regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables.

Customer satisfaction and customer retention are important linkages to market-based strategy and to profitability. The ultimate decision of any marketing strategy should be to attract, satisfy, and retain target customers. The customer as a critical component in the profitability equation is completely over-looked in financial analysis and annual reports. It is an asset that businesses have yet to quantify in their accounting systems.

One of the most expensive and difficult tasks facing any business is acquiring new customers. Acquiring a new customer can cost five times as much as retaining an existing customer. Research has shown that 2% increase in customer retention can decrease costs by as much as 10% for a business. To retain current customers, businesses engage in relationship marketing strategies to continually attract repeat business. While both current and new customers must be acknowledged and respected, the ultimate goal is to turn every new customer into a returning customer.

Customer loyalty can be difficult to define, but it is imperative to running a successful business (Yahalom, 2010). Consequently, a challenge that every business faces when trying to resolve customer conflict is the often disconnect between the policies and practices of the business and that of what customers perceive to be important (Saddoris, 2015). In today 's highly digital world, with the click of a button and help from tools such as Twitter, Facebook and Yelp, a dissatisfied customer that feels a business is not providing quality products or services could wreak havoc on that business or its sales (Yahalom, 2010).

Also, in terms of efficiency, customer loyalty is very important in these days. First, getting new customers is very hard and ineffective. It costs 5 to 10 times more to attract new customers than retaining the existing ones. In addition, even if companies succeed to get new customers, they cannot be sure that new customers will continue using their products or services. However, if a company has many loyal customers, they don 't need to be worry about that. Not only is it less expensive to retain a customer than to acquire a new one, loyal customers spend more and purchase more profitable products and services. It is already proved as 'Pareto 's Law '. The longer the customer is loyal, the more profit the company gains. Therefore, if companies care about not only long term growth and profits but efficiency, customer loyalty has to be a top priority.

Higher levels of customer loyalty in service organizations initiate a series of economic effects in a business system. Revenues and market share grow as loyal customers commit to the organization, become repeat customers, and recommend the organization to others. Reichheld & Sasser (1990) conducted their studies across 14 industries in the United States and found that a 5% increase in customer retention leads to an increase in profit of between 25% to 95%.

Reaching out through Social Media (Social CRM) like facebook, linkedin, twitter, google plus and other social platform

loyalty has also been affirmed. As customer retention is critical for strategists in dynamic world of

Customer Loyalty is a customer who will repurchase from the same service provider whenever possible, and who continue to recommend or maintains a positive attitude towards the service provider. The loyal customers are less likely to switch because of price and they make more purchases than similar non-loyal customers (Reichheld and Sasser, 1990). Loyalty customers will also help to promote and share knowledge with their friends about the service provider. They will provide strong word-of-mouth, create business referrals, provide references and serve on advisory boards. The loyal customers are served as a "fantastic marketing force" by providing recommendations and spreading positive word-of-mouth, those partnership-like activities are the most available advertising that the company can get (Raman, 1999). Loyal customers increase sale volume by purchasing a wider variety of the products and by making more frequent purchases. The loyal customers had more purchasing services than non-loyal customers (Bowen and Shoemaker, 1998). And other researchers have theorized that service encounter satisfaction, customer loyalty and profitability are related (Zeithaml et al. 1996).

passengers. Furthermore it was also an attempt to study and analyze what the customers needs,