More Info On Customer Experience And Loyalty
March 12, 2009 8 Comments
In an earlier post, I discussed my research on how customer experience correlates to loyalty. That analysis looked at the link between good experiences and three elements of loyalty: Willingness to buy from the provider, reluctance to switch away from the provider, and likelihood to recommend the provider.
In a recently published research report called Customer Experience And Loyalty: A Closer Look I took a deeper look at the correlations. I wanted to understand the connection between those loyalty elements and each of the three components of Forrester’s Customer Experience Index: Meeting the needs of customers, being easy to work with, and being enjoyable.
Making things a bit more complicated, I examined all of this across 12 industries: airlines, banks, cell phone service providers, credit card providers, hotels, insurance firms, Internet service providers, investment firms, medical insurance companies, PC manufacturers, retailers, and TV service providers.
While the data is different across industries, I found some overall trends:
- Meeting needs tends to correlate the most with purchasing more
- Being easy to work with correlates the most with purchasing more and making recommendations
- Enjoyability correlates the most with making recommendations
Looking at the matrix of customer experience and loyalty, here are the industries with the highest level of correlation in each area:
The bottom line: It’s another wake-up call for wireless providers, TV service providers, ISPs, and banks