The New Battleground for Customer Loyalty
in three specific behaviors
- Repurchase – Customers continue to buy from your company
- Share of Wallet – Customers buy more from you over time
- Advocacy – Customers say good things about your product
Perceived vs Actual Impact of Customer Service on Loyalty
Companies grossly underestimate the benefit of simply meeting customer expectations.
Companies massively overestimate the loyalty returns from exceeding customer expectations.
Delight is Expensive
Delight is Rare
Delight is a tough target to hit with any regularity. However, basic competence, professional service and getting the fundamentals right are easier to achieve – and they matter more than we believe.
Findings from the Survey conducted by the authors on 97,000 customers of varying domains –
Finding #1 – A strategy of Delight does not work
Finding #2 – Satisfaction is not a predictor of Loyalty
Finding #3 – Customer Service interactions tend to drive disloyalty, not loyalty
Finding #4 – the key to mitigating disloyalty is reducing customer effort
“If you are really serious about creating the loyalty outcomes that matter most to the performance of the customer service department and ultimately the success of your company, reducing customer effort must become the new centrepiece of your service strategy”
Wrong Loyalty Goal –> ‘You exceeded my expectations’
Correct Loyalty Goal –> ‘You made it easy’
The Four Principles of Low-Effort Service
- Minimize channel switching by boosting the ‘stickiness’ of self-service channels, thereby keeping the customers from having to call in the first place.
- When customers have to call – arm the reps to head off the potential for subsequent calls
- Equip reps to succeed on the ’emotional’ side of the service interaction by using advanced experience engineering tactics.
- Value the Quality of the experience over the speed and efficiency
- Loyalty is now primarily driven by a company’s interactions with its customers.
- Customer loyalty is an ongoing relationship and the key, of course, is customer support.
- Customer satisfaction and customer loyalty are not the same, and are not even co-related!
- Make things as easy as possible for your customers