Customer loyalty can be a powerful competitive advantage. And customer loyalty is more than repeat purchasing. Customers who are loyal tend to buy more over time and, most important, tend to tell others about a company to their family, friends, and colleagues.

Enterprise Rent-A-Car figured this out early on and, rather than having a complicated and sophisticated customer research program, they focused on two simple questions—

one about the quality of the customer's rental experience and, the second, the likelihood that they would rent from the company again. What do you think about this view? What organizational capabilities would be necessary to develop customer loyalty? Check out Enterprise's Web site [www.enterprise.com]. Look at the statements of the company's mission, culture, and founding values. How do these relate to customer loyalty? LO1