Why Customer Satisfaction Isn’t Enough
We've all heard the slogan “Satisfaction Guaranteed or your Money Refunded”. It’s one of the first advertising slogans of the modern age. Written in 1869 to promote Eaton’s department store in Toronto, it made a huge impact at the time.
Today – we’ve seen it a thousand times. Number one – it’s so familiar it’s almost invisible. Number two – do you really believe it? Number three – it simply isn’t enough.
Modern customers demand more than satisfaction
Having satisfied customers should be the least of your customer service goals. A satisfied customer was content with your service. They enjoyed your product. End of story. Next time around they may remember you or they may not. You will slip into the category of many satisfying but unmemorable consumer interactions all of us experience dozens of times a day.
If a customer has bought from you once, how do you ensure they come back?
It’s one of the biggest challenges any business faces. Especially in today’s market saturated with choice.
There are 5 things people will say about you once they have done business with you
- Something outstanding
- Something OK
- Something bad
- Something really bad
Unless you’re after notoriety, you want to avoid options 4 and 5. And if you want to cultivate customer loyalty and customer return over plain old customer satisfaction, you only want to be hitting option 1. Every single time.
As the service or product provider, you get to choose your reputation. It’s not just the product or service. It’s the entire experience.
Customer loyalty is about the relationship between you and your customers
Why do customers choose you?
- Because of You (predominantly they bought you)
- Word of Mouth advertising (what others say about you)
It sounds obvious but there is genius in this simple message. You want your customers to buy from you because of you, not because of the product or service you provide.
Customers shouldn't even be thinking much about your product or service – it should be so good that quality is assumed. What you want them to do is talk about you - to lots of other people!
You want to inspire the kind of loyalty that inspires Mac users to lampoon PCs, Levis wearers to cut their old jeans into shorts rather than buy a different brand, shoppers to travel miles to your store rather than ordering online.
What are you giving your customers to talk about? What actions do you inspire?
What is Loyalty and How Do You Get It?
Loyalty is when a customer will not only do business with you, they will also tell others how great you are. They will generate more customers.
Real customer loyalty helps you build profit because it’s not about price - it’s about an 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.
How much are you investing to grow your customer loyalty?
Customer loyalty pays serious dividends, so it is worth a serious investment. By deliberately focusing on this area you will create an increased sales pipeline, you will lower the cost of acquisition, you will increase your referral business and your reputation. Perhaps most importantly you will acquire testimonials.
Testimonials are that crucial. 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 difference between customer loyalty and satisfaction.
Clients will be satisfied with a good product and an acceptable service. Clients will be loyal if the product is great and the service is exceptional.
However clients will be 'raving fans' if the product is the greatest and the service is memorable.
What do you do to be memorable? What reasons do you give your customers to talk about you to others?
Create a memorable experience and your clients will become your unpaid sales force.
Power to you!
CEO, Business Benchmark Group
Stefan Kazakis on 5 May 2018
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