This content originally appeared on NN/g latest articles and announcements and was authored by Tim Neusesser
Summary: Prioritizing user loyalty over short-term profit maximization leads to sustainable growth by fostering trust, customer retention, and long-term profitability.
The most important business goal of most digital products is to maximize user loyalty and the lifetime value of the user's future visits and purchases. Maximizing the value of a single, specific visit is less important. In fact, it is often counterproductive to chase short-term gains at the cost of the long-term customer relationship.
The Tradeoff Between Short-Term and Long-Term Profits
Profit maximization is a strategy companies use to earn the most profit possible. It might involve adjusting production, pricing strategies, and managing costs to increase revenue while reducing expenses.
While most companies do and should strive toward profit maximization, they must differentiate between long-term and short-term profit maximization. In most cases, there is a tradeoff between these two, meaning that companies often must sacrifice a portion of their short-term profits if they aim to increase long-term profits .
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This content originally appeared on NN/g latest articles and announcements and was authored by Tim Neusesser
Tim Neusesser | Sciencx (2025-01-17T18:00:00+00:00) Choose Customer Loyalty over Short-Term Profit. Retrieved from https://www.scien.cx/2025/01/17/choose-customer-loyalty-over-short-term-profit/
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