Business Basecamp

Customer loyalty is more than customer satisfaction

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Satisfied customers are essential for the Organization.

But there is one thing that is even more important: customer loyalty. Satisfaction gives you no guarantee for the future. Loyalty now!

What is the difference?

Satisfaction surveys the current state of mind of the customer, in his relationship with you.

It is a snapshot of an emotional setting. Even if you ask questions that focus on future purchase intentions (would you recommend us to others? Where will you place your next purchase), it still has only a picture about the intentions of the customer at that moment.

Medium organization example

At a command for a medium-sized organization we agree these results compared with the effective purchasing patterns of customers. And the difference.

Everyone extremely satisfied!

In the survey on customer satisfaction was a pretty high score achieved, and more than 75% of the participants gave a repeat purchase intent as to places.
After this research (done beginning 2008) everyone was extremely satisfied with himself. The suggestions for improvement of service were implemented, the respondents were given a nice thank-you, in which the adjustments on the basis of the study were announced.

But still….

Fifteen months later, however, a different picture emerges. Although the turnover positive albeit with limited evolved (4%), lie the analyses. In an investigation of the invoicing data shows only 19% an additional order to have done so, a big difference with the intention of 75%. At an inquiry into the reasons came the customers with following arguments: price, ordering convenience and suppliers closer to home to.

So there is a big difference between satisfaction and loyalty! Satisfaction is about the past, loyalty on the future!

What is customer loyalty?

Hide figures often bring to light more than what they.

The way you look at the numbers is crucial. Take the example above. A very good customer satisfaction, a high intent to repeat purchases and a growing turnover. Everything is correct! And even if not, then everything is still running fine. Or not?

Actually runs the not at all fine. If you look at the figures, there are three important problems well.

There is growth of turnover, but also a big change in customers. The organization fails to establish lasting relationships with its customers.
New customers require more time than existing customers. So there is – by the low number of loyal customers – an important loss of productivity.
By the large number of missing one important new customers costs less than turnover, turnover with new customers. And that is a loss post. The sales with higher margin: less administration costs, and less time or in other words staff costs; that is a lower cost per sale and a higher margin).

Customer loyalty means that customers – just like friends in your personal life – when you keep coming back. Even if you’re more expensive (something), something more difficult to achieve, even if problems arise, you will be the benefit of the doubt.

Loyal customers costs you less time, administration, marketing. In short, loyal customers ensure a structural turnover with a margin higher than the average. Loyalty is an emotional bond.

How do you get loyalty?

Smart organizations know for decades that loyalty is more important than satisfaction. To achieve this there was thing worked for years with various systems, customer loyalty cards, coupons, etc (savings along).

Searching for new ways to bind customers.

Nowadays all this become commonplace. It makes little difference for customers still. You want to really stand out and create loyal customers, then you should choose another (additional) approach. It began a dozen years ago with the various clubs that were founded. Clubs where users could share their experiences with each other and could inter-Act. Examples of this are legion. Just think Harley Davidson, the VTM-club)

Some five years ago to make the newsletters sunrise. There was additional information offered, customers outside the normal product information. Information for managers, salespeople, information about travel, recipes…

And today? What do we do today to customers emotionally to bind to our brand or our Organization? There are three important trends that are still developing but only. So, you may still in the boot steps and reel!

Reinstating the seller and personal gifts.

The seller comes back on the first plan. Petrol stations again offer personal service. In supermarkets you can speak with someone again to request information to the many info boots that mushrooming ground travel. Companies take many additional representatives in service to all customers en masse to operate…
The promotional gifts begin to take other forms. Instead of the traditional gadgets, are now books (focused on the individual personal interest of the customer), offered air baptize, carting, concert tickets or tickets for paintbal or speakers from the field of the customer.

The first steps toward integration of the customer in the Organization of the supplier are taken. In a first step, it is an access for customers via e-modules, but more and more companies to stand up one of their employees at the customer (where the mro vendors take the lead in several years)

The aim of all this is simple; engage the customer emotionally as much as possible suppliers and care for an unbreakable loyalty.

Conclusion: customer loyalty pays off

The profit is enormous. Both in terms of turnover, as in the area of cost control. What efforts do you supply to obtain to loyal customers?

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