Customer Defection

Customer Defection
In order to learn from customer defection, a business must understand the strategic importance of customer loyalty. Product-oriented companies with no focus on its customers and no market orientation will more likely to have high customer defection. Not many of those firms will take the time to find out why they lost the customer. Businesses understand the significance of existing customers and enforce every effort to keep them satisfied. However, lost customers are the most valuable source to recognize potential improvements for the company.
One of the reasons the businesses fail is that they tend to focus on profitability and stock prices rather than customer satisfaction and loyalty. Businesses that utilize its operations on creating customer value are destined to be market leaders. Lexus, for example, initiated a model that calculates how much more each dea...