Print RSS

Frank Friend's Blog

Loyal vs. Satiisfied Customers

Frank Friend - Wednesday, March 30, 2011


A satisfied customer is much the same as loyal customer, right? - WRONG.

Many, even most, managers think that satisfied and loyal are synonymous terms and pat themselves on the back when their Customer Satisfaction Surveys show that 80 or 90% of their customers are satisfied with the company.

Most of these customers are satisfied only until they are offered a better price or some other inducement by a competitor. Several studies have shown that 60 to 85% of companies that switched suppliers were satisfied or very satisfied with their previous supplier.

What’s the difference?

Satisfaction relates to the results of a process - as for example when you put a coin in a soft drinks dispenser you expect to get a can delivered, if that happens you are satisfied, if it doesn’t you move on to another dispenser (after kicking the first one!)

Loyalty occurs when an emotional bond is established with a customer either by building human-to-human relationships over a long period, or by the customer having a “moment of truth” experience. This is when the company does something so exceptional (in the customer’s mind) that a bond is established that isn’t easily broken. The loyal customers compared to simply satisfied ones are more forgiving of mistakes, have greater retention and referral rates and give the company a bigger share of their purchasers.

The Lifetime Value of a loyal customer (the net gain to the company over the lifetime of the relationship) can be several times higher than that of the simply satisfied one.

More companies are emphasizing the importance of satisfying their customers but few understand that this is but the first step and they fail to move on to implementing programs to convert the satisfied customers into loyal ones.

Comments
Anonymous commented on 19-Oct-2014 05:18 AM
Definitely believe that that you said. Your favorite reason appeared to be
at the internet the simplest thing to understand of.
I say to you, I definitely get irked while other people consider worries that they just don't recognize about.

You controlled to hit the nail upon the highest as smartly as
outlined out the entire thing with no need side effect , folks can take
a signal. Will likely be back to get more. Thanks
Anonymous commented on 19-Oct-2014 05:26 PM
Please let me know if you're looking for a author for your site.
You have some really good articles and I believe I would be a good asset.
If you ever want to take some of the load off, I'd love to write
some content for your blkog in exchange for a link back to mine.
Please send me an e-mail if interested. Thank you!
Anonymous commented on 21-Oct-2014 02:54 AM
I was wondering if you ever thought of changing the layout of your site?

Its very well written; I love what youve got to say. But maybe you could a
little more in the way of content so people could connect
with it better. Youve got an awful lot of text for only having 1 or 2 images.
Maybe you could space it out better?
Anonymous commented on 21-Oct-2014 03:28 AM
Greetings, I do think your web site could be having browser
compatibility issues. When I take a look at your blog in Safari,
it looks fine but when opening in I.E., it has some overlapping issues.
I just wanted to provide you with a quick heads up!
Apart from that, excellent website!
Anonymous commented on 26-Oct-2014 04:33 PM
Hi there, just became alert to your blog through Google,
and found that it's really informative. I'm going to watch outt for brussels.
I will appreciate if you continue this in future. Lots of people will
be benefited from your writing. Cheers!
Anonymous commented on 01-Nov-2014 09:16 AM
I savour, cause I found exactly what I used to be having a look for.
You've ended my four day lengthy hunt! God Bless you man. Have a great day.

Bye
24cialisitalia.com commented on 06-Dec-2014 03:22 PM
I was suggested this web site by my cousin. I am not sure
whether this post is written by him as no one else know such detailed about
my trouble. You are incredible! Thanks!
Adan Lillick commented on 06-Apr-2017 06:06 AM
Your domain has almost no traffic. Be found on Google top results quickly thanks to our free registration: http://directory.intstn.com

Post a Comment




Captcha Image

Trackback Link
http://ffauk.com/BlogRetrieve.aspx?BlogID=419&PostID=206769&A=Trackback
Trackbacks
Post has no trackbacks.