Long-term customer relationships are characterized by efficiency, low risk, and predictable revenue. The general theory for creating such relationships in a market economy is clear enough. Sellers compete for buyers' preference and satisfaction. Winners are rewarded by lower cost and lower risk, by returning customers, and by a favorable treatment from equity markets. These are the basic rule of a free market system.

In an increasingly time-pressured environment, where managers are responsible for innumerable processes, people, and objectives, the rules of the game are occasionally forgotten. For example, it is sometimes said that customer satisfaction is "worthless" but loyalty is "priceless" or that trying to satisfy the customer can be a "trap" for business. The reasoning is that customer satisfaction doesn't always lead to repeat business. This is true, but misses the point. Customer loyalty without satisfaction not only confuses means with ends, but also contradicts how free markets operate.

Obviously, not all satisfied customers will buy again, but that's not a reason for abandoning efforts on customer satisfaction in favor of loyalty. Loyalty is an objective of the seller—buyers are not particularly interested in it. Customer-centered organizations accomplish their objectives by understanding what buyers want. If customers are satisfied with the services, the relationship tends to become stable and mature. The economics that follow are substantial, for seller as well as for buyer.