Taking the time to find out if you’re doing things right in your customers’ eyes is important. Customer satisfaction is essential for success. Taking the time to measure customer loyalty is also important. Building a business to survive the long haul demands not only satisfaction, but also loyalty. When you measure customer loyalty, you can become proactive to help your business thrive.
What is the difference between customer satisfaction and customer loyalty?
One package delivery company uses a regular survey to measure customer satisfaction: shipping volume (increasing, decreasing or stable), error rate (packages lost, damaged or delayed), and customer rating (happy, neutral or upset).
While these indicators provide a valid snapshot of performance and customer opinion, they are lagging rather than leading, like looking in the rearview mirror.
The difference between customer satisfaction and customer loyalty is illustrated by these future-facing indicators now being used by the delivery company:
1. Future business: How strong is your customer’s intention and commitment to do business with you in the future? (Absolutely – Maybe – Definitely not). Measure customer loyalty to find out.
2. Positive word-of-mouth: How vigorously do customers praise and recommend you to others? (Enthusiastic referrals – Make no effort – Tell others to stay away)
3. Constructive feedback: Do your customers help you upgrade your service and improve your organization? (Give you lots of ideas and inputs – Keep quiet, even when things go wrong – Tells the competition about your weakness)
Key Learning Point To Measure Customer Loyalty
Measuring customer satisfaction is important, but the future lies before you, not behind. It is also important to measure customer loyalty to determine if you are doing what it takes to earn repeat business. Satisfaction might not be enough to get people to keep coming back. Find out where loyalty stands and what might be necessary to improve it.
Action Steps To Measure Customer Loyalty
Measure customer loyalty, not just their current satisfaction. Use leading questions to fathom their intentions about the future. If you haven’t earned loyalty, find out why.
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Copyright, Ron Kaufman. Used with permission. Ron Kaufman is the world’s leading educator and motivator for upgrading customer service and uplifting service culture. He is author of the bestselling “Uplifting Service” book and founder of Uplifting Service. To enjoy more customer service training and service culture articles, visit www.RonKaufman.com.
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