Avoid the 3 Common Customer Loyalty Mistakes

Customer Loyalty Survey Mistakes

As we previously discussed in our blog post, customer-loyaltyDo You Know the Difference Between Customer Satisfaction and Customer Loyalty?, customer loyalty consists of two main factors, including: loyalty behavior and loyalty attitudes. Loyalty behavior is when customers make repeat purchases of current brands, rather than buy from competitor brands (customer retention). And, loyalty attitudes are opinions and feelings about products, services, brands, or businesses that are associated with repeat purchases.

Customer loyalty is a critical component of maintaining a successful, long-term business. Customers that are frequent users of your products or services are more likely to be repeat customers and recommend your business to others – keeping the business relationship alive and away from your competition.

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Do You Know the Difference Between Customer Satisfaction and Customer Loyalty?

What is the difference between Customer Satisfaction and Customer Loyalty?

customer-satisfaction-loyaltyCustomer Satisfaction is a measurement of customer attitudes toward products, services, and brands. Customer Loyalty on the other hand has two definitions. Customer Loyalty consists of loyalty behavior (i.e. customer retention) which is the act of customers making repeat purchases of current brands rather than choosing competitor brands. Secondly, Customer Loyalty encompasses loyalty attitudes which are opinions and feelings about products, services, brands, or businesses that are associated with repeat purchases. At times, customers display loyalty behavior without having loyalty attitudes.  Conversely, at times, customers show loyalty attitudes without exhibiting any loyalty behavior.

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What is the Value of Customer Retention?

Understand the value of customer retention

customer-retentionMany companies realize that customer retention is extremely important. They recognize that losing valued, loyal customers is bad for the company’s long term revenue potential and overall success. Even though this is understood on a basic level, few companies – especially those companies providing a service – seem to misunderstand what losing a single customer can mean to their business.

Example:  Sandra took her car to an auto maintenance facility for trouble with her oil gauge. Sandra knows very little about cars, so she decided it would be wise to have her car towed to the closest auto maintenance facility to be serviced. The mechanic on duty treated Sandra with absolute condescension.  He acted as if Sandra should know much more about cars and how to check her own oil. Upon completion of service, the mechanic charged Sandra for 2 hours of service even though Sandra had only waited an hour for her oil to be checked and changed.  It was obviously a bad experience for Sandra, and she had no intention of returning to that auto maintenance facility for future services, nor would she recommend their services to friends and family.

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Customer Satisfaction Surveys – Advantages and Disadvantages

Take customer satisfaction into consideration when developing strategic business decisions. 

customer-satisfactionThe most efficient way to measure customer satisfaction is to develop customer satisfaction surveys with the help of a good survey software solution. An advanced survey software solution can manage multi-mode survey research methods – produce the same survey in different formats; including online surveys, mobile surveys,  paper surveys, and more – depending on the best method to reach your target customer base. Customer satisfaction surveys are designed to give you anonymous and unambiguous insight into your customers’ thoughts and perceptions pertaining to your products, services, programs, and your organization as a whole. They can also provide valuable information leading to what needs to be changed in order to retain lasting customer relationships.

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Build Customer Experience through Customer Segmentation

Customer segmentation will allow you to target specific groups of customers effectively

customer-segmentation-surveyWhen it comes to interacting with customer service, your customers will choose the channels with which they are most comfortable and provides them with the best customer experience. Some customers choose to purchase products at a store, and when it comes time to engage with customer service, they may choose to inquire in-person, make a phone call, or even <gasp!> write a letter. Yes, people still write letters. Others may choose to purchase products online, keeping the interaction with customer service all digital and inquire with question via email, live chat, Twitter, or Facebook. There are even those customers that choose to purchase a product online, but prefer the interaction of a phone call with a live customer service representative, or there are those customers that purchase in a store, but prefer to interact with customer service online. Your customers’ customer service needs are diverse, so you need to accommodate.

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The Key to Effectively Market to Customers is to Know Customers

Use online customer surveys to gather information to create effective marketing plans

customer-service-customer-surveyThe key to effectively marketing to customers is to know your customers. Your customers are your target audience and knowing your target audience inside and out gives you insight into their needs and wants. If you know what they need and want, you can develop marketing strategies that clearly communicate your important marketing messages. It seems like pretty simple, basic stuss, right? But the hard part is figuring out exactly what your customers want and expect from your products and services. How do you gather that information? Continue reading

Avoid Over-Surveying Your Customers

Avoid over-surveying your customers with these strategies

Surveying your customers is a great way to learn more about customer satisfaction, areas where your products, services, or overall organization needs improvement, perceptions about your brand, and many more. However, over-surveying your customer base can cause a decline in response rates and may also weaken the value of your surveys.

over-surveyingYour customers are flooded with requests for feedback through online and email surveys, mobile devices, and through many social media outlets. Don’t be that organization that inundates their customers with incessant requests for feedback.

Here are six strategies to tactfully gather feedback from customers while at the same time ensuring that you are not overwhelming your customers, or worse, damaging the customer relationship. Continue reading

The Basics – What Exactly is a Survey?

What is a survey and why do we use them?

online-survey-with-multi-modeLet’s take a trip back to the basics. By definition, a survey is “a method for collecting quantitative information about items in a population.” Simply, a survey is a data collection tool used to gather information about individuals. The purpose of a survey (the survey objective) hinges on what the information collected will be used for. Depending on the objective of the survey, a survey may focus on different topics such as preferences, behavior, or factual information. Surveys provide important information to all types of research fields, for example, those in market research, by healthcare professionals and educational researchers, and for sociological and psychological studies. Continue reading

Online Customer Surveys Are Great for Marketing

Try online customer surveys to gather information for marketing your business 

You may be pleasantly surprised at the overall effectiveness and bold accuracy of a well-planned and structured, anonymous online customer survey. marketing-online-surveySurvey respondents generally tend to be more straightforward and honest with responses when their identity remains anonymous. It’s the same reason why some people prefer to comment on online content anonymously, or even why someone may choose to take part in a witness protection program for their safety when testifying in court. When survey respondents are worried about being recognized, they are simply not as willing to tell the complete, honest truth.  Continue reading

Is Customer Service a Significant Success Strategy for Business?

As National Customer Service Week comes to a close, we leave you with this question to ponder: Is customer service the most significant success strategy for business?

Is the face of customer service changing to become a defining business strategy for success? customer-serviceMany can argue this case. But what is true is that technology has changed all aspects of business, especially in the ways in which we communicate. Research has shown that social media has elevated customer service from a supporting role to a key business driver. More specifically, it is the growing consumer use of social media that has elevated customer service to such prominence in the business model. Continue reading