Customer satisfaction and loyalty

Customer satisfaction and loyalty

When a satisfied customer is not faithful

A satisfied customer is a customer who draws a positive balance from one or more experiences of using a product or service. Fidelity, meanwhile, is the customer’s attachment to a company over time, after a cumulative experience. This attachment comes both from the balance of client experiences and from a certain level of attachment to values ​​and brand image. This distinction is becoming more and more visible as competition intensifies and the consumer becomes active.

In the mobile telephony sector, for example, many users acquire smart phones at the best price by subscribing to a large package and then take advantage of the number portability to switch to the cheapest operator at the end of their commitment. These satisfied customers, who enjoy maximum benefits from the market, are not loyal customers. The attrition rate (proportion of clients lost during a given period) is thus increasingly disconnected from the satisfaction rate.

When a loyal customer is not satisfied

Better identified but less related to the recent problems of digital marketing, this phenomenon is linked to the “cost of exit”, that is to say the effort that the customer must provide to change of supplier. If companies can increase this exit cost in an attempt to retain their customers, it can also turn against them, as customers in the digital era often view this constraint as an impediment to their freedom of movement. Another illustration of the lack of correlation between satisfaction and loyalty.

The value of satisfaction indicators

In this context of de-indexation of satisfaction and loyalty, companies must give strategic importance to the creation of an effective and trusting relationship between their brands and their customers. After making a priority of the measure of customer loyalty (Customer Loyalty Measurement) must now focus on the modeling of behavior with new customer relationship management tools.

Customer Relationship Map

For example, three indicators can be used to refine the knowledge of satisfaction and thus implement appropriate actions: CSAT (Customer Satisfaction Score), Net Promoter Score (NPS) and Customer Effort Score (CES)). Their promise: bring a more emotional dimension to customer relationship management. Their common feature is that they are based on simple questionnaires that are understandable to everyone and that their distribution differs from the institutional channels of customer relations. Available on social networks, blogs or mobile applications, they allow companies to look after their e-reputation and access inaccessible data through more conventional channels.

The CSAT, an indicator of individual satisfaction

CSAT is the most widely used satisfaction indicator in digital marketing. This is the basis for “90% satisfied customers” ads that are broadcast on the Internet. The client is asked to express their level of satisfaction on a scale of 1 to 5, for example from “very satisfied” to “very dissatisfied”. When asked just after the consumer experience, or punctually with a representative sample, this question can produce a simple rate to view and use for one-time adjustments. By digging this indicator a little bit (for example by adding a text field to collect verbatim), it is possible to determine which specific points of the product, service, company or customer relationship has been assessed or not ‘Act in consequence.

NPS, indicator of recommendation

Introduced in 2003, the NPS allows, unlike the CSAT, to assess customer satisfaction over the long term and not in the short term. It is determined by asking the question “How likely is it that you recommend our brand / product to those around you? “ The client responds by assigning a score of 1 to 10. The NPS is calculated by subtracting the number of detractors (scores 1 to 6) from the number of promoters (9 to 10), with ratings from 7 to 8 being assigned to clients neutral “. The score obtained is considered correct if it is positive and as excellent from +50. This method has the advantage of being able to be tracked over time, thus putting it into perspective with the business strategies of the company. It also identifies customers, who can serve as ambassadors for the brand,

The ESC, an indicator of customer experience

Defined in 2010 in an article in the Harvard Business Review, the ESC takes a different angle from the CSAT and the NPS. The client is asked to evaluate, on a scale of 1 to 5, the efforts he had to provide to satisfy a need or the right response to a request addressed to the company. This method was born from the observation that it is more profitable, in terms of retention, to minimize the efforts of the client rather than to try to exceed its expectations. Its main advantage is operational: it allows to take corrective actions on certain processes, but not to question the effective relationship that binds the customer to a brand.

How to measure the performance of your customer service

For a complementarily of loyalty methods

Given the increasing complexity of consumption patterns and expectations in terms of customer relations, it is recommended to adopt an open attitude, to identify loyalty levers and limit the effects of loss. Since there is no universal indicator to analyze all client practices and expectations, the best solution is to diversify the methods of data collection and exploitation. In addition to CRM, performance indicators aim to involve clients directly, to better understand the ad hoc responses to the use of a service, and to the quality of its relationship with a company.

The goal of Customer Relationship Management (CRM) is to optimize interactions with customers and prospects by focusing on the quality of the relationship and the experience offered to the client. The functioning of the CRM tools makes it possible to historicity and centralize all types of exchanges with the customer, from the first call for signature of the contract, to e-mails, meetings and one-to-one presentations. Rather than summarizing a database that accurately compiles the indicators of the

Client’s journey (coordinates, preferences, history), the CRM is able to interpret this information in order to predict behavior.

By putting ourselves “in the place of the customer”, the company is able to anticipate its expectations and to put in place marketing processes always more qualitative and individualized. It is the unavoidable tool of digital marketing, one that identifies strengths and weaknesses, personalizes communication actions via multi channel marketing; refine the targeting of promotional, commercial and loyalty programs. A tool that gains intelligence as it is fed data and refines its parameters, proceeding from a continuous improvement of the techniques of capture and loyalty.

In order to ensure optimal long-term satisfaction, and thus to guarantee loyalty, the strategic challenge is to continually improve the management of the customer relationship by closely combining emotional proximity (satisfaction indicators) and operational efficiency (CRM)