Monday, August 9, 2010

Managing Customer Loyalty through Direct Marketing

LF is active in three markets: Property & casualty insurance, pension and banking. The main objective for such a strategy is to differentiate by offering all the services to the customer who can enjoy the benefits of having their whole personal economy at one place. LF’s market requires great customer loyalty as the high fixed costs of acquiring a new customer does not make the customer profitable until several years later. If the company then can achieve excellent customer loyalty, there are great reasons to invest in this field. Direct marketing is a method known to be focusing on long term aspects by establishing a relationship which increases the customer loyalty.
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