Enhancing customer loyalty is a microfinance institution's most important business strategy. Every critical element involved in managing microfinance operations--from product pricing to staff incentives, from marketing to eligibility requirements, from client screening to the menu of available services--can (and should) be formulated to promote loyalty. While most MFIs recognize the importance of client retention, few have designed business strategies to maximize customer loyalty. Hopefully that will change. This article details the economic impact that customer loyalty has on a microfinance institution (and the negative effect of desertion).
Craig Churchill is the Director of Research and Policy at Calmeadow, a Canadian NGO that specializes in microfinance.
Journal of Microfinance
Issue and Volume
BYU ScholarsArchive Citation
"Banking on Customer Loyalty,"
Journal of Microfinance / ESR Review: Vol. 2
, Article 2.
Available at: http://scholarsarchive.byu.edu/esr/vol2/iss2/2