NotesFAQContact Us
Search Tips
ERIC Number: EJ920232
Record Type: Journal
Publication Date: 2010
Pages: 3
Abstractor: ERIC
Reference Count: 1
ISSN: ISSN-0164-8527
The Lifetime Value of a Loyal Customer: What Can a Child Care Director Learn from Domino's Pizza and a Cadillac Dealer in Dallas?
Copeland, Margaret Leitch; Gimilaro, Susan
Exchange: The Early Childhood Leaders' Magazine Since 1978, n195 p30-32 Sep-Oct 2010
In "The Service Profit Chain," Harvard Business School professors James Heskett, Earl Sasser, and Leonard Schlesinger (1997) offer two anecdotes--from Domino's Pizza and a Dallas Cadillac dealership--that illuminate the concept of valuing a lifetime customer. Experts estimate that the lifetime value of a loyal Domino's Pizza customer is $4,000 and a Dallas Cadillac customer is $332,000. In other words, far more than the day-to-day service or the individual pizza or car purchase. The authors note that these figures only represent the direct value of a lifetime customer and do not factor in the "value of referrals associated with satisfied customers." Although at first it sounds very unlikely, there is a lot a child care business can learn from Domino's Pizza and a Cadillac dealer in Dallas. Directors of non profit centers can ask parent board members to calculate their own lifetime values to make the point that a family's inability to pay full tuition for a period of time during the recession pales in comparison to a lifetime of loyalty and the provision of continuity of care for the family.
Exchange Press, Inc. P.O. Box 3249, Redmond, WA 98073-3249. Tel: 800-221-2864; Fax: 425-867-5217; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A