Drug testing

CEM Can Improve Customer Loyalty

'A 5 percent increase in customer retention increases profits by 25 to 95 percent.'

'The greater the loyalty of customers, employees, suppliers, and shareholders, the greater the profits reaped .'

This is the received wisdom from experts on the nature and importance of customer loyalty. Yet in a world of product and service commoditization and as the timelag between imitations to innovation declines, how can organizations differentiate themselves to build loyalty?

The answer lies with Customer Experience Management creating the 'emotional responses and connections with products and brands tha are difficult to build in any other way' . In effect marketing is not just concerned with the uniqueness of the 4 Ps and more focused on the way customers feel about you through the emotions evoked by the customer experience. Need this be surprising, or is this long overdue? after all a dictionary definition of loyalty refers to it as a 'feeling or attitude of devoted attachment and affection' .

Looking at the evidence from the services sector, the Market Metrix hotel index demonstrates this link between loyalty 'emotions', customer satisfaction and price premiums elicited by the 'experience of hotel products and services'.

'Guests who experience the loyalty emotions at midscale hotels feel these emotions and they will pay on average $10 more. If they do not feel these emotions, they will pay only about $3 more'

A recent Gallup survey further found that:

'Over a one month period shoppers whom were emotionally connected to a supermarket spent 46 percent more than shoppers who were satisfied but lacked an emotional bond'

For the New York supermarket Wegmans this emotional bond is reflected in the customer experience with well cared for employees at the frontline treating Wegmans consumers in a better and friendlier manner.

Managing the customer experience to achieve the correct emotional response for loyalty involves more than the right price or the right product and don't expect satisfaction alone to be enough. For instance, delight and anger have been noted as emotions that may link better with understanding customer emotions and loyalty.

So look at your whole customer experience and ask the question, what emotions are you evoking and will these be valuable, detrimental or could they be reengineered in such a way as to promote a loyalty inducing experience.

By Colin Shaw
Beyond Philosophy ?

Research Reference

Frederick Reicheld
Trends in the Experience and Service Economy, Professor Voss, 2004,
www.dictionary.com
Evoking Emotion, Barsky and Nash, 2002
The Price of Loyalty, National Petroleum News, March 2005
Schneider and Bowen, Sloan Management Review, 1999

Colin Shaw

is the Founding Partner of Beyond Philosophy and guru of the Customer Experience Management. He has also produced two most successful books on customer experience which are now available in market. His first book, Building Great Customer Experiences sold out within just eight weeks, is on a third reprint and available in paperback. Colin's second book, Revolutionize Your Customer Experience released in September 2004 and considered as Bible in Customer managment business world.

limousine chicago service
In The News:

Stand Out in Business the Write Way

When was the last time you received a handwritten note... Read More

Accountants / Lawyers Do Yourself a Favor - What do Your Customers Want?

In my day to day practice in strategic human resource... Read More

Call Center Services - An Ever Increasing Demand

Are your company's call center services all that they could... Read More

Developing A Customer Complaint System

Background The company was experiencing an increase in the number... Read More

From Disgruntled to Champion - How to Turn an Unhappy Client Into Your Best Customer

It's a salesperson's worst nightmare- the phone call that comes... Read More

Client Service as a Competitive Advantage

As someone who has been heavily involved facilitating strategic planning... Read More

Reducing Customer Resistance to Your Product or Service

Resistance has to do with putting up blocks that prevent... Read More

How to Win the Hearts of Your Customers and Friends

Those of us doing business over the internet have to... Read More

Should I Have My Company Mystery Shopped?

I wish I had a nickel for every time someone... Read More

Customer Conversion Mistakes That Will Cost You

The following are common mistakes that Sales Managers and Owners... Read More

How to Retain Your Customers the Dish Network Way

Customer retention is vital to a business. If you cannot... Read More

What Every Manager Should Know About How to Win the Loyalty of Customers

Dr. Michael LeBoeuf, in his cassette album entitled, Win Customers... Read More

The Great American Customer Service Unawareness Campaign

Q: I'm so sick of you so-called business experts always... Read More

Dont Eliminate The Middle Man - Add One

Today, there are situations when we actually add a "middle... Read More

Moments That Matter

Many years ago, I was a first year apprentice assigned... Read More

Be A Resource

What is one of the greatest ways to add value... Read More

Learn to Anticipate Your Customers Needs

This morning I was having breakfast with my good friend... Read More

The History of CRM -- Moving Beyond the Customer Database

Customer Relationship Management (CRM) is one of those magnificent concepts... Read More

Caring for Your Customers

You probably think I am going to say something like,... Read More

Treating the Customer Dissatisfaction Epidemic: How to Go Beyond Simply Masking the Symptoms

Corporations in every sector are spending more than ever before... Read More

Who Says the Customer is Always Right?

We all know the old adage, "The Customer is Always... Read More

Your Voice Print

"Mountains are built one pebble at a time and climbed... Read More

Your Number One Asset

Customers put you in business, keep you in business, and... Read More

How to Transform Your Voicemail into an Effective Medium of Communication

"Hi this is Randy. Leave me a message after the... Read More

4 Easy Steps to Better Online Customer Support

Customer support is very important when you're running a business,... Read More

induction lighting induction light bulbs Pete's produce ..