Evaluation of a customer loyalty strategy with system dymamics
DOI:
https://doi.org/10.22395/rium.v14n26a6Keywords:
CLV (customer lifetime value), customer loyalty, system dynamics, relationship marketing, ROI (return on Investment).Abstract
The customer loyalty programs are a tool of differentiation and high impact to create long term relationships with customers of a company, so as to achieve an improvement in the portfolio and collections, reduÂced costs of customer service, increased revenue from higher sales to the most profitable customers, cross selling, among many other benefits. AcÂcordingly, we present a system dynamic model to analyze the economic benefits, in terms of profitability, which would be to implement a customer loyalty strategy. To adjust and validate the proposed model, its implemenÂtation is done in a real case of a marketer of agricultural products in the department of Valle del Cauca - Colombia. The simulation results show that indeed the model fulfills its purpose, and that the loyalty program achieved significant results in the finances of the organization.
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