The Future of Effective and Accountable Customer Loyalty

Loyalty Science Lab
18 min readOct 12, 2022

A Reenvision Loyalty Conversation with Wharton Professor Peter Fader

The future of loyalty will put the management and valuation of customer assets at the center of the organization, not only for marketing but also for other functional areas.

What will this future of accountable customer loyalty look like? Loyalty Science Lab Director, Dr. Yuping Liu-Thompkins, spoke with Wharton Professor Dr. Peter Fader, as part of our Reenvision Loyalty Series.

A leading expert on customer lifetime value and customer valuation, Professor Fader specializes in the analysis of behavioral data to understand and forecast customer shopping/purchasing activities. He co-founded a predictive analytics firm (Zodiac) in 2015, which was sold to Nike in 2018. His current venture, Theta Equity Partners, commercializes his more recent work on customer-based corporate valuation.

In this article, we bring you Professor Fader’s insights on:

  1. The current state of customer differentiation;
  2. The future of quantifiable customer values;
  3. Gaining CFO support on customer initiatives; and
  4. Customer-base audit.

The Current State of Customer Centricity (a.k.a. Customer Differentiation)

Yuping: You have been a long-term advocate for the idea of customer centricity, and you have published two books about it. In a nutshell, what does it mean to be customer centric? What does a customer centric business look like?

Peter: Customer centricity are really unfortunate words because too many people get the impression that we love every customer. No, that’s not what I’m talking about. So, the title of the book Customer Centricity is kind of ambiguous and potentially misleading. It’s the subtitle of the book, Focus on the Right Customers for Strategic Advantage, that’s what we’re talking about. It means a couple of things:



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