Pt 1. Satisfaction vs. Loyalty 

Even with a detailed plan which considers every eventuality, starting a business in an unfamiliar area – whether that be a new product or a change of geographical environment, is a daunting undertaking.

There are several universal points to consider which will improve your business wherever you are, and whatever your market. Some of these approaches are factors which we already know work, are proven and may seem obvious; however it is taking a closer look at some of the most basic principles and shedding new light onto them which can remind us of what is important, and give those principles new meaning in the constantly evolving world of business.   

Director of Immigration into America/ Europe Mark Gilbert has played an integral part in the development of several large international organisations, and after offering his business insights to a UK networking group recently, we decided to share his presentation with you about a key component of company success: the importance of delighting customers and clients to achieve their loyalty.

Starting with Statistics

What’s at stake? 

• 80% of companies believe they deliver a superior customer experience, but only 8% of their customers agree

• 68% of customers leave you because they perceive you are indifferent to them

• 86% of US & European consumers say their trust in corporations has declined over the last 5 years

Repeat Business from your Customers 

• 80% of companies believe they deliver a superior customer experience, but only 8% of their customers agree

• 68% of customers leave you because they perceive you are indifferent to them

• 86% of US & European consumers say their trust in corporations has declined over the last 5 years

The Benefits

• Repeat customers spend 33% more than new customers

• A 5% increase in customer retention can increase business profits by  25% – 125%

• A commitment to customer experience results in up to 25% more customer retention and revenue than sales or marketing initiatives

Financial Benefits:

 source: Righttrack Consultancy

Satisfaction vs. Loyalty? 

“Satisfaction relates to a Service. Loyalty relates to a relationship.” 

These two levels of gratification should not be confused: studies have shown that customer satisfaction surveys, whilst useful, can be a variably accurate gauge of future customer loyalty.

For example, half of your ‘satisfied’ customers and a quarter of your ‘very satisfied’ customers will do business with your competition, and almost 80% of defecting customers will be satisfied, or very satisfied.

Look for our second article on customer loyalty and delight, where we will examine how to build, and measure your business’s customer loyalty.