Source: adapted from Hughes, A.M., 2003, The customer loyalty solution, MacGraw Hill, New York.
Port managers can determine the lifetime value of the customers (LTV) and divide them into high, medium, and low lifetime value segments. They can also determine the likelihood that the customer will leave by dividing the customers into three defection classes. This assessment should be internal to the organization, with the customers unaware of their ranking within the port authority, since it may convey a negative perception.
The customers a port should be most concerned about are the four most important boxes, priorities A and B. Those with the highest lifetime value and the highest probability of defecting are the priority A customers. Priority C customers are those with a low lifetime value or loyal customers who are unlikely to leave. Once port managers have identified those customers with the highest retention value, they can take a simple step, such as designating those customers as key accounts.