Happy People Are More Loyal Customers

I’ve been following the research on happiness for several years, because I think it has a strong link to customer experience. The theory is that happy people tend to be more loyal customers and more engaged employees.

So I took a look at our consumer data to see if there’s a quantifiable link to loyalty (look for the same type of analysis around employee engagement later this year). My analysis looked at the likelihood of consumers to recommend companies across 18 industries based on whether or not they agreed with the statement “I am typically happy.” Please note that we were not asking consumers if they were happy or unhappy with a company.

It turns out that happy people are more likely to recommend companies across all 18 industries. The largest gap between happy and unhappy recommenders is in rental cars, where happy people are more than twice as likely to recommend. Even the smallest gap, 11 percentage points for retailers and parcel delivery services, is still substantial.

In my next post, I’ll examine which consumers are happy.

The bottom line: Happy people are more loyal customers

About Bruce Temkin, CCXP
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.

4 Responses to Happy People Are More Loyal Customers

  1. Kym says:

    I am a very happy person and a very loyal consumer. I would have never imagined there is a link! cool finding! (I also have always been a very engaged employee….)

  2. Hey Bruce, great stuff. We are actually having Shawn Achor speak at our conference. I hope you can make it out this fall!

  3. Dave Fish says:

    Good stuff. We also found a similar link between age and experience ratings (http://research.forum.winter12.mr-2.us/angels_assassins.phtml).

  4. Tucker M says:

    It’s such a simple concept, yet can have such a great impact on a business! Along to the road to customer loyalty (http://www.impactlearning.com/the-road-to-customer-loyalty/) a major component is also ensuring that your employees are happy as well. Think about it, if your customer service reps are happy, chances are a little bit of that happiness will rub off on your customers as well!

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