Customer Service — Loyalty needs to be earned constantly; it can evaporate with one bad experience.
“9 out 10 “loyal” customers will leave after one problem”
A recent survey showed the following 89 percent of customers will say they are loyal, but only 29 percent of those customers then add that they would remain loyal after a bad experience with a company. And when it comes to what they do in practice, only 10 percent say they remained loyal after actually having a bad experience. In other words, 9 out of 10 customers who see themselves as loyal are not willing to give companies a second chance when there is a problem. Loyalty needs to be earned constantly, in every interaction—and it can evaporate with one bad experience.
Most consultants have a 2×2 matrix. Here’s one we found that looks at customer loyalty/service.
The four quadrants are:
§ Critics: Customers who are low-value, and demonstrate low levels of loyalty. They may need something the company provides, but may not be satisfied with the customer experience. Often, they are more than willing to leave whenever an alternative is available.
§ Lock-Ins: Customers who are low-value, with moderate to high levels of loyalty. They typically stay with a company for some time, but they don’t spend much. They may be relatively satisfied, or they may be locked in through a contractual relationship or because of the costs of switching from one organization to another. But companies are not getting is a share of their heart or enthusiasm.
§ Drop-Ins: Customers who are relatively high-value, but also relatively fickle. They may actually be making significant purchases from the company, but will easily move to a competitor. They may be very valuable customers, but they are not valuable just to you.
§ Advocates: The 15 percent of customers who are high value “super loyalists.” This group does in fact behave the way companies traditionally expect loyal customers to behave. Compared to the other 85 percent of consumers, Advocates tend to make more frequent purchases of a company’s products or services, recommend the company to friends and family, and avoid shopping at competitor companies. Advocates are 22 percent more likely to purchase bundled products, 28 percent more likely to anticipate.
There is another model that ranks customers by looks at value and maintenance, but we’ll save that for another week. Customer service, product quality are what’s expected by every customer every time!
Loyalty needs to be earned constantly; it can evaporate with one bad experience.
All the runners is the race compete-Only one wins-Run to Win!