The Infinite Decay of Loyalty

Talking Data
19/09/2024 6 min

Listen "The Infinite Decay of Loyalty"

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Episode Synopsis

Exploring the concept of customer loyalty and argues that, for most businesses, customer loyalty decays exponentially over time. Rönnbäck uses mathematical formulas to model this decay and demonstrates that it's impossible for businesses to achieve sustained growth without a significant number of "eternals" - customers who remain loyal indefinitely. He further suggests that efforts to increase customer inflow are more impactful than efforts to improve loyalty in terms of achieving growth.
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