Stew Leonard’s is a little-known grocery store chain based in Connecticut.

It has only four stores. But its small number of locations doesn’t begin to illustrate what customers experience when they visit what has been called the
“Disneyland of dairy stores.” Since opening its first dairy store in 1969, the company has been known for its customer-centric way of doing business. In
fact, founder Stew Leonard’s obsession with the concept of customer lifetime value made him determined to keep every customer who entered his store.

The video featuring Stew Leonard’s shows how the retailer has delighted customers for more than 40 years. With singing animatronics farm animals,
associates in costume, petting zoos, and free food and drink samples, this chain serves as many as 300,000 customers per store every week and has achieved
the highest sales per square foot of any single store in the United States. After viewing the video, answer the following questions about the company.

1. What is Stew Leonard’s value proposition?

2. How does Stew Leonard’s build long-term customer relationships?

3. How has Stew Leonard’s applied the concepts of customer equity and customer lifetime value?

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