What Creates Customer Loyalty or Engagement?
In a recent study, Performancepoint, LLC surveyed over 3000 people regarding Customer Engagement. What we found was very interesting.
For a while now companies have focused on brands and bei
ng unique. However that may not always be what the customer wants most. Many companies have spent a great deal of time and money on loyalty programs as well and that may not be what consistently drives business.
When asked “I am likely, if needed, to continue purchasing and/or working with this company” and “I am likely to recommend this company to a friend or colleague” being distinctive in the marketplace was not the most important factor these decisions and neither was a sense of pride in the brand.
Customers focused on three factors:
• Overall satisfaction with the company and its products and services
• Trust in the company
• Being treated fairly by the company
What should this tell us? It does not say that distinctiveness, branding and experience are not important. It also does not imply that loyalty programs do not work. What customers are most likely telling us is “Don’t forget the basics.” Many companies have focused so much on “experiences” they have forgotten how to handle basic customer service. Other organizations, in the midst of the recession, have pulled back too much and the customer feels like they are not getting a fair deal.
Amidst all of the financial challenges we face and the bells and whistles we add we must remember it is about relationships. Trust and fair treatment are key to building and maintaining relationships.
• How are you building trust?
• How do you demonstrate fair treatment to your customers on a daily basis?
• How have you built a culture that supports customer focus and service?
• How do you know you have solid products and services that will sustain your company over time?
Once you have answered these questions then maybe you should focus on branding, the “customer experience”, and loyalty programs.