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Why Doesn't Satisfaction Guarantee Loyalty?
Posted By: angryman* on 10/26/2004 3:40 AM (CST) 50 Points
hello ladies and gentalmen,

Using other consumer behaviour concepts suggest why consumer satisfaction doesnt predict loyalty?

if you need elaberation ask me

angryman

Posted by: Sanjeev Kumar Vyas Accepted Answer
10/26/2004 5:05 AM (CST)
Customer satisfaction will not predict loyalty in a condition where even your competitors satisfying customers.
Customers will always buy on the basis of perceived value if the customers feel that the competitor is offering a better value they switch.
Some experts suggest delighting the customer. But this will also not predict customer satisfaction if the competitors begin to delight the customers too.
For making a customer loyal one should always make his offering seem to have more value than the customer. The companies who are able to do this will keep the customers loyal.
However to make one's service seem to have more value it is not necessary to reduce price, in fact price war hurt profits, business can try to increase the services or application etc. to make customer perceive value.
Hope that helps
Regards,
Sanjeev
 
Posted by: eugene Accepted Answer
10/26/2004 5:43 AM (CST)
Hi angryman,

Sanjeev gave you some pretty good stuff above.

A satisfied customer doesn't mean a customer will become or remain loyal. For example, I might be satisfied with a Big Mac because i'm hungry but does that make me loyal to McDonald's?

Not really. It could be because it was the nearest food outlet to me or one that I can afford at the moment.

Building customer loyalty involves many things. First of all, your product or service offering must be at least at par if not better than your competitors, your service level is good or better yet, fantastic, your customers or prospects have a positive brand perception about your product / service / company and lastly perhaps an identifiable / relevant rewards programme.

Now, if you can delight your customers, chances are they'll be spreading the good word about you. And if they are telling their family and friends about you, they'll probably buy from you again...What Sanjeev said is probably true, i.e. competitors can also delight your customer. However, if your customers are delighted by you, why would they buy from your competitors all of a sudden? Though it's possible, it would be difficult for a competitor to do so.

So, once you've succeeded in delighting your customers, keep working at it and you should keep them.

That's my 2 cents worth.

Good luck.
 
Posted by: W.M.M.A. Accepted Answer
10/26/2004 9:05 AM (CST)
Kevin Roberts, CRO of Saatchi and Saatchi suggests that it goes far beyond delight to "LOVE"...yes, love. He has coined the term "Lovemarks" instead of "trademarks".

The cosumer must come to love the product, the people selling the product, the feelings they get from using the product, and the feedback they get from outside sources for having the product.

When consistent service blends with a wonderful product, you have loyalty...you have love.
www.saatchikevin.com will enlighten you to this marketing theory.

Randall
WMMA
 
Posted by: anthony* Accepted Answer
11/5/2004 7:24 AM (CST)
Hi all,

I just want to bring a different dimension to the question posed by angryman.

The responses so far given appear to be under ideal marketing situation - devoid of graft/corruption which is a reality and pervasive in my part of the world.

Particularly if you are in the service business, your customer is usually never satisfied until he is bribed. And that until a higher bidder comes along. To them quality, prompt delivery, feel-good, etc are just secondary.

What do you do under this circumstance?

Regards
anthony.
 
Posted by: bob* Accepted Answer
11/5/2004 9:42 AM (CST)
Good morning,
In todays unsettled world, satisfaction does not equate to loyalty. I'm not sure loyalty exists anymore. but for those companies that want to try and establish loyalty, I see the key as "communications" You can NEVER over communicate, but it's easy to under communicate.

If a customer is satisfied with a company's service, then the company must take the first step to create a loyal consumer. That's generally done by sending a satisfied customer a small "thank you note" From there, the company should continue to communicate with that client, and eventually, that client will "TRUST" the company creating the loyalty factor.

Thank you
b_perlstein
 
Posted by: Val (Moderator)* Moderator Response
11/8/2004 8:49 PM (CST)
Hello all. I am closing this question since it's more than 10 days old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

Thanks, so much, for participating!

Val (Moderator)
 


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