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?

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I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

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