Research on Measurement and Use of Customer Value and Loyalty

Abstract

This paper aims at determining how customer value and loyalty are measured. The paper relied on previous literature to attain the perceived results. From past literature, the measurement of customer loyalty and value is subjective because of human attributes such as attitude and behavior. It is therefore complicated in doing a survey that will be conclusive. However, from the study, it was deduced that customer loyalty can be determined if a company understands past loyalty experience that will be used to predict future customer loyalty. Customer value on the other hand can be measured based on the cost associated with acquiring a customer and the customer turnover in a given period.