The Nexus Between Business Profitability, Business Customer Relationships and Customer Loyalty: A Review of Existing Literature and Selected Studies

Abstract

This conceptual paper argues that the key to business profitability is management of customer relationships. The longer business keeps the customer satisfied the more profit the organisation makes. Studies have proven that failure to understand the public’s perception of a business is detrimental to the success and profitability of a business. This may translate to a gradual death of the business. Thus, the relationship between a business and its customers should not only be maintained but continuously improved to create a strong bond between the firm and the customers. The paper argues that this strong bond sustains the company for ages whilst at the same time ensuring that customers always get value for their money.

Keywords: Customer, customer relationships, customer loyalty, customer profitability

DOI: 10.7176/PPAR/9-3-10

Publication date:March 31^st 2019