Cust Loyalty creates Biz Success

from Linked In 10/13 enhanced by Peter/CXO Wiz4biz

Satisfaction ??? According to Jeffrey Gitomer author of Customer Satisfaction is Worthless: Customer Loyalty is Priceless, the answer is very clear. “Satisfaction is no longer an acceptable measurement of Customer Service success. The standard and measure of success in this millennium are ‘Loyal’ customers.” A Gallop poll also concludes that no matter how “satisfied” an organization thinks its customers are, if they haven’t made an emotional connection with their customers to develop a long-term relationship, satisfaction will ultimately be worthless. Satisfaction alone does not build a strong “loyal” customer relationship.

Why Loyalty is so Important. It is difficult to focus on “loyalty” when, as standard practice, most organizations seem to settle for “satisfied customers”. Satisfaction is a measurement of “mediocrity”. When a customer indicates, “I am satisfied”, it can usually be translated to mean the service experience wasn’t bad; it was good. However, it also was not exceptional. Satisfied customers are certainly better than disgruntled customers, but, building a “loyal” relationship is a “must” for long-term success. The key difference between loyalty & satisfaction is that customer satisfaction scores fail to predict how customers will actually behave relative to future purchases of your product or service. They may or may not return. On the other hand, Loyal customers will consistently buy from you. By definition, loyal customers always come back to purchase repeatedly – which in turn – produces a much longer & stronger income stream. The larger the loyal customer base, the greater your organization’s long- term success.

Creation & Retention of Loyal Customers is the best strategy for your organization is to pursue. This strategic initiative can & will separate your organization from the competition. Let’s face it, service today is “mediocre” in most organizations. Your organization can achieve a “competitive distinction” by developing a strategy of creating Loyal customers. It has been proven that organizations with high levels of Loyal customers typically grow revenues at twice (2x) the rate of their competition. However, the strategy of developing Loyal customers must become a part of the organization’s culture & spread throughout. Since the culture of an organization will always drive the behavior of the people who work within the organization, people will behave differently, if the culture is entirely “profit-driven”. In this culture, people will do whatever they have to – in order to produce profit – often times at the expense of the customer. This short-term thinking is an organizational disaster waiting to happen. If the culture and strategy of the organization is to develop and retain loyal customers, then the contributors within the organization will focus on what they need to do, to create loyal customers. Needless to say, in a culture that promotes Customer Loyalty, the entire organization must be devoted to valuing customers

Building a Loyal relationship. When implementing a competitive strategy that deals with “loyalty”, also take note that the customer experience needs to be aligned with organizational promises. When the customer’s experience is not reflective of what has been advertised, promised, or expected, the customer’s trust in the organization is undermined resulting in many lost revenue opportunities. Therefore, there is an urgent need to create strong relationships through frequent points of connection, and deliver unique service experiences as expected & promised by the organization’s marketing & advertising. The immediate impact of delivering an exceptional experience based on what is promised is a winning combination and a powerful weapon against your competition. It’ll make you the winner !!!

Comments: Do you have any ideas of how to create Loyal Customers?