How Loyal Are Customers? Good News For Credit Unions, Bad News For Sprint

I recently analyzed consumer loyalty patterns across 9 industries (banks, credit card providers, health plans, insurance firms, Internet service providers, investment firms, retailers, TV service providers, and wireless carriers) in the report The Strength Of Customer Relationships. Here are a few of the findings:

  • Retailers have the most loyal customers
  • Banks have the least loyal customers
  • We also looked at 112 large organizations relative to their industry averages and found that customers were the:
    • Least likely to switch away from credit unions, Medicare, USAA, Virgin Mobile, and American Express
    • Most likely to switch away from Sprint/Nextel, Circuit City, Gap, National City Bank, and Radio Shack
    • Most likely to buy additional products from credit unions, USAA, Citizens Bank, TracFone, and American Express
    • Least likely to buy additional products from Nextel, Capital One/North Fork Bank, AIG, Charter Communications, and Citibank

The bottom line: The key question is how loyal are your customers?

Written by 

I'm an experience (XM) management catalyst; helping organizations improve results by engaging the hearts and minds of their employees, customers, and partners. I enjoy researching and speaking about leading-edge XM topics. I lead the Qualtrics XM Institute, which is the world's best job. We're igniting a global community of XM Professionals who are inspired and empowered to radically improve the human experience. To achieve this goal, my team focuses on thought leadership, training, and community building. My work is driven by a set of fundamental beliefs: 1) Everything starts and ends with human beings, so you need to understand how people think, feel, and behave; 2) XM is a discipline that needs to be woven throughout an organization's entire operating fabric; and 3) Building the XM discipline requires a combination of culture, competency, and technology.

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