Read Along – ‘The Effortless Experience’- Chapter 1

The New Battleground for Customer Loyalty

Defining 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

Quotable Quotes

  • 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

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