Retailers Lead, TV Service Providers Lag In Loyalty

I just published research called How Loyal Are Consumers? Not Very that examines the loyalty that consumers have with 113 large firms 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.

We asked 4,500+ US consumers about three areas of loyalty:

  1. Willingness to consider the provider for another purchase
  2. Reluctance to switch business away from the provider
  3. Likelihood to recommend the provider to a friend or colleague

Here are some of the industry-level findings (in terms of the percentage of loyal customers):

  • Willingness-to-repurchase
    • Leaders: Retailers (89%) and Insurers (82%)
    • Laggards: TV Service Providers (69%) and ISPs (73%)
  • Reluctance-to-switch 
    • Leaders: Retailers (80%) and Investment Firms (73%)
    • Laggards: Airlines (62%) and TV Service Providers (63%) 
  • Likelihood-to-recommend 
    • Leaders: Retailers (81%) and Insurers (75%)
    • Laggards: TV Service Providers (59%) and Health Plans (60%)

Here are some of the company findings (ranked relative to their industry averages): 

  • Willingness-to-repurchase
    • Leaders: USAA credit cards (+24%), Southwest Airlines (+13%), and credit unions banking (+13%) 
    • Laggards: US Airways (-18%), Sprint (-16%), and RadioShack (-13%)
  • Reluctance-to-switch 
    • Leaders: USAA credit cards (+20%), Apple (+19%), and Hampton Inn (+18%)
    • Laggards: US Airways (-18%), Sprint (-16%), RadioShack (-15%), and Washington Mutual banking (-15%)
  • Likelihood-to-recommend 
    • Leaders: USAA credit cards (+26%), Kaiser (+17%), and Southwest Airlines (+17%)
    • Laggards: US Airways (-18%), Compaq (-17%), and RadioShack (-16%)

The bottom line: What are you doing to make your customers more loyal?

Written by 

I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

2 thoughts on “Retailers Lead, TV Service Providers Lag In Loyalty”

  1. Hey Bruce, I’ve been following your work at Forrester for years and this is more great information on customer loyalty trends. Did the surveys also gather any insight as to why customers are more or less loyal within these industries? I would think that may help tie together the differences between industries as well, and indicate which are commodities and which are considered differentiated.

    Thanks … Bryan

    1. Bryan: Thanks for the feedback. The survey does not directly provide the “why” about loyalty. But there are a number of different questions that we’ve looked at together to gain some of those insights. Unfortunately, we’ve only done that analysis for client projects so I don’t have any published research that I can talk about.

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