Hispanics Are The Least Loyal

We recently published the 2011 Temkin Loyalty Ratings which examines how 6,000 US consumers view their recent experiences with 143 companies. We further analyzed the feedback from consumers based on their self-reported ethnicity and here’s what we found:

  • Hispanics are the least loyal group in 10 of the 12 industries. Interestingly, they are the most loyal to TV service providers.
  • African Americans are the least loyal in six industries, but the most loyal to Airlines.
  • Caucasians are the most loyal in five industries, but the least loyal to Internet service providers and TV service providers.
  • There are two double-digit ethnic gaps: Caucasians’ loyalty to Investment Firms is 16% higher than Hispanics and African Americans’ loyalty to Health Plans is 11% higher than Hispanics.

This post is the second part of my look at customer experience and loyalty by ethnicity. Check out the previous post: African Americans Rate Experiences Higher.

I will be posting about other demographic segments and also about our analysis of the Temkin Loyalty Ratings data. If you want to get access to the data, go to the Temkin Ratings website.

Research note: There is a known bias in this type of research on Hispanics; it does not include responses from non English speaking consumers and likely underweights those consumers that use English as a secondary language.

The bottom line: It’s important to know your target customer segments

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 “Hispanics Are The Least Loyal”

  1. As always, thanks for sharing your research. I would caution your readers in 2 key areas:
    1. There could be “real” differences in the customer experience that create these results. In general, broad marketing and sales efforts set expectations that might not be able to be delivered equally to all customers. Language, region, and service delivery could be different for different segments of the population which may happen to impact hispanics more than others. Although you didn’t say there is a causal relationship, the “bottomline” statement might imply it and I don’t think we can jump to that conclusion without further investigation (or perhaps you have that info not published here?). Root-cause research is always critical and we’d be grateful if you are able to share further insights in that area.

    2. Looking at the numbers, many of the differences are quite slim, and statistically there may be no difference at all because we don’t know the population sizes for each segment. Perhaps you could publish the margin of error?

    We’ve written a bit on this at
    http://waypointgroup.wordpress.com/2009/11/16/subzero-customer-service-1-me-0/
    and I think we can do more.

    Thanks!

    1. Hi Steve: Thanks for posing those questions. The numbers of respondents are large enough so that most of the differences are significant at a reasonable confidence level. But if the gaps are small, then they’re small. In any case, as with any large sample, the most likely case is that the data is a relatively accurate reflection of the population. The bottom line that “companies must know their target audience” is is an absolute must for any high-performing organization — and it isn’t just about ethnicity. As a matter of fact, the key question is one that you didn’t ask: Are the differences due to ethnicity or other demographic differences. If Hispanics are younger than other ethnic groups we looked at, then are the differences due to the difference in age or the difference in ethnicity? haven’t done the analysis to answer that question.

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