Customer Satisfaction gets you NOTHING !
Ok, here is some proof . . . .
The Consumer Electronics Association carries out a large survey every year, in which two of the many questions are:
1) Are you Extremely Satisfied, Satisfied or Dissatisfied with the brand of your purchase?
and,
2) Will you Definitely buy the same brand the next time you need another similar product?
Take a look . . . . .
about 1% of dissatisfied customers say they will definitely purchase again. This makes sense.
But, only 8% of satisfied customers say they will buy the same brand. I was surprised when I first saw that statistic.
The real surprise is that 70% of customers who’s expectations were surpassed, pledged to buy again. WOW!!
Thats an 8.75 X increase in propensity to repurchase between customers who are “satisfied” and those who are “Extremely Satisfied”. I want some of that !
Giving customers more than they expect, transforms a financial transaction into an emotional event which creates a bond with the brand.
POW ! LOYALTY !
No brainer, right?
Ok, I’ll say it . . . I think most of corporate America would rather play golf !
3 comments
Interesting numbers, clearly extreme satisfaction needs to be the goal… the biggest opportunity here is in the extremely dissatisfied group as with the right intervention they can move into the extreme opposite group. We advise many of the companies we work with to place their efforts on extremely unsatisfied group as there is often a strong ROI here as long as the reasons can be effectively and sometimes creatively addressed…….
It would be good to try and now measure behavior against this as well, ie they would recommend and SAY they would buy again…. but what happens when it actualy comes time to buy again….. we know from research that customer say and do very different things…..
Chris, thank you for your comment.
Please see my next post as a response.
Thanks for your post.
Rudy V