Customer Satisfaction vs Customer Loyalty: Why the former isn’t enough

Managing customer satisfaction is a priority for every business. But are you nurturing customer loyalty and customer satisfaction? We’ve all heard the slogan “Satisfaction Guaranteed or your Money Refunded”. It’s one of the first advertising slogans of the modern age. It was written in 1869 to promote Eaton’s department store in Toronto and had a significant impact at the time.

Over 150 years later, we’ve seen it a thousand times. It’s now so familiar that it’s almost invisible, and the words don’t have the same impact as they did. Unfortunately, customer satisfaction isn’t enough anymore. Keep on reading below to see the strategies for customer loyalty and satisfaction.

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What is customer satisfaction and how do you measure it?

Don’t get me wrong, customer satisfaction in business is crucial. Modern customers demand more. It’s a standard that no longer sets you apart from your competitors.

Ask yourself, how to measure customer satisfaction in your business? I’ll bet it’s not about going above and beyond.

A satisfied customer was content with your service. They enjoyed your product and didn’t have complaints (or ones you weren’t able to resolve). That’s it. They might remember you, or they might not. You will fall into the category of many satisfying but unmemorable consumer interactions that we all experience dozens of times a day.

There are only two occasions when a customer tells someone else about their experiences. The first is after a bad experience, and the second is after a truly great one. If you’re anything in-between – you checked the box for satisfaction. Instead of focusing on measuring customer satisfaction strategies, focus on building customer loyalty!

What is customer loyalty?

Customer loyalty is about the relationship between you and your customers. There is genius in this simple message. Once you get past the satisfaction stage, your customers want to buy from you. Loyal customers aren’t even thinking much about your product because the quality is assumed. To achieve this, you must inspire the loyalty that inspires Mac users to lampoon PCs.

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Customer loyalty strategies

Loyal customers generate customers. They help you build profit because it’s not about price but experience.

Loyal customers don’t think about price. They look forward to what you have on offer and how it will build on their relationship with you.

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Here are a few strategies to build customer relationships:

  • Start a loyalty program – show your appreciation by giving something back. Shouldn’t all taken businesses and no give.
  • Share behind the scenes – people like to see the human side of the business. We buy from people we want, so let customers get to know you more.
  • Offer discounts for repeat customers – customers will return to you over your competitors.
  • Referral schemes – hopefully, your customers share glowing experiences with their family and friends. Referral schemes encourage new bookings and grow your relationship with new and existing clients.
  • Ask for feedback – Show customers that you value their feedback. Customers appreciate that their voices are heard and impact a business. 

How much are you investing to grow your customer loyalty?

Customer loyalty pays serious dividends, so it is worth serious investment. By deliberately focusing on this area, you will:

  • Create an increased sales pipeline
  • Lower the cost of acquisition
  • Increase your referral business and your reputation
  • Acquire testimonials that encourage more business

It is a fact that your most profitable customers will inspire word-of-mouth marketing, which is the most cost-effective marketing stream of them all. The way to do that is to build customer loyalty. Create a memorable experience, and your clients will become your unpaid sales force.

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