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That's pretty much how it works, personally though, I disagree with the way it's done. I believe that a feud should last for a long time, say 2 or 3 years. For that to happen the matches should be fairly rare and never consecutive, instead the matches between two feuding guys should always be at a slightly higher intensity that most and should steadily pick-up over time. There aren't too many examples of this in recent WWE history because they tend to hotshot things but one example was Maven and Chris Nowinski, because of their history in Tough Enough they always raised their game against each. Not by much since they were usually on Heat but enough to keep the story going. Had they been around longer and made it to IC championship level (that was probably their limit) I think that would've continued in the same vein.