Customer Satisfaction = Customer Loyalty?

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Customer Satisfaction = Customer Loyalty?
MaryEllen Lindemann, Member
Having been on the "front lines" of customer service/management for many years, it has been my experience that although a satisfied customer can become a loyal customer, many times that situation has more to do with how happy the customer is with the service given rather than the product that is being sold. In effect, a customer may stay with you even if the product is not up to par simply because they were extremely happy with the service they received. How can that be translated and measured as customer retention?

Consistent Service + Product Quality = Customer Loyalty
Consistent Service + Product Quality = Customer Loyalty
Customer' intent for repurchase or repeat visits is a step / zone. Just before converting that specific customer base in loyalty are high quality service (intangible aspects), which have to be consistent besides the most important factor of dispensing the good quality product (tangible aspects) consistently and improving continously. A customer base will not stay for long if the product is good and service standards are descending or vice-versa.

Customer Satisfaction
Emiel Veenstra, Member
I like the customer satisfaction model from Kano very much. What you describe as taking for granted is Kano's basic factors. The customer expects a certain minimum, without rewarding that.

Retaining Customer Loyalty
Customer loyalty is a product of customer satisfaction, as mentioned. It must be earned. Honesty in advertising any new product is a must, in which the customer is told the advantages and disadvantages of the product. If not in the advertisement, customer should be informed or advised when they request for an upgrade to a new product. Knowing that the customer's needs and requirements are being considered and taken care of is one of the essential ingredients in retaining customer loyalty.

Customer Loyalty is NOT a Result of Customer Satisfaction
Tim Boone, Member
Customer loyalty results from the margin between what customers expect and what they perceive they have received. Satisfaction is getting what you expect. In the case of satisfaction there is no positive margin, therefore no loyalty is built.
See Frederick F. Reichheld "The Loyalty Effect: The hidden force behind growth, profits, and lasting value."
Fired up and loyal employees are usually the source of positive memorable experiences for customers... They lead to fired up an loyal customers.. Your product needs to be good, but the way your people deliver it has to be exceptional in most cases... Now how many companies in today's profit-only mentality have loyal and fired up employees? How can they expect to have those highly valuable loyal customers?


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