Customer Satisfaction/Customer Loyalty Tracking
Description of Our Customer Satisfaction / Patient Satisfaction / Loyalty / Value Research
Research has consistently shown three good reasons for businesses to monitor and manage customer satisfaction, customer loyalty, and customer retention. First, it costs more money to gain a new customer than it does to keep an existing one. Second, the easiest way to increase new business profitably is to cross-sell within the current customer base. Third, the surest way to sustain long-term profitability is to maintain the lifetime profit value of each customer. Since the 1980’s, Steven Ethridge has been on the leading edge of discovering the drivers of customer satisfaction, loyalty and retention and tracking these measures to help businesses maximize revenues and profit performance.
Unique Features of Our Customer Satisfaction / Patient Satisfaction / Loyalty / Value Research
Most companies that track these measures develop a list of attributes (drivers of satisfaction, loyalty, or retention) based on management judgment, assumptions or focus groups. There are two major problems with this approach. First, it does not discover the real, underlying emotional reasons why a customer is satisfied, loyal, and retained. Second, it does not use the correct language for talking to customers about those attributes, whether in the survey questionnaire or in marketing communication.
For example, financial institutions tend to measure the loyalty factor, speed of service, at the teller window, with wording like, “fast, efficient tellers” or “short wait time in line at the teller window.” Yet, our Motivational Linguistics Analysis® revealed in one study that when people who switched financial institutions talked about this as the reason for switching, the most common phrase (theme) that they used was “long lines.” The objective reality of how long people actually had to wait in line was not the point. The problem was the subjective reality — the perception of a long wait time based on what they saw: “long lines.” In reality, long lines do not necessarily mean long waits and short lines can have long waits.
Note that this is both a communication issue (which is why we specialize in communication research) and a measurement issue. If the bank had tried to measure this issue using language like “fast, efficient tellers,” it would have not have measured the true driver. The reason is that the true driver, what they saw (“long lines”), was an emotional one: it was emotional because the right brain remembers visually and is the seat of emotion. If the bank had tried to measure this issue using the wording “fast, efficient tellers,” it would have incorrectly measured as a rational construct what was really an emotional one.
Key Benefit Deliverables from Our Customer Satisfaction / Patient Satisfaction / Loyalty / Value Research
For these reasons, our Customer Satisfaction and Loyalty Tracking is a three-phased project, beginning with our proprietary research methods, as follows.
- Phase 1: Qualitative Discovery of Satisfaction/Loyalty Drivers — Using our Motivational Linguistics Analysis,® we uncover the true drivers of satisfaction, loyalty and retention.
- Phase 2: Quantitative Rank-Ordering of Satisfaction/Loyalty Drivers — Having uncovered the true drivers in Phase 1, we use advanced, multivariate statistical techniques (e.g., regression analysis) to rank order the those drivers to determine the most important ones that need to be monitored and managed to sustain long-term revenue growth and profitability.
- Phase 3: Ongoing Tracking of Customer Satisfaction and Loyalty — Using cost-effective surveying technology like automated (IVR) telephone surveys and/or web surveys, we track daily, weekly, quarterly or semi-annually (depending on the client’s budget). Then we provide periodic management reports at the total brand system level, division level (e.g., regions and/or product/service divisions) and/or at the branch/unit level. The reports guide management in customer service training, call center protocol development, supervisory procedures, and performance incentives. They also provide input to operation and marketing strategies.
Clients That Use Our Customer Satisfaction / Patient Satisfaction / Loyalty / Value Research
The types of clients that benefit most from Customer Satisfaction and Loyalty Tracking are medium to large corporations whose success depends on well-trained customer service employees and high quality customer service. Such firms include banks, credit unions, hotels, airlines, automobile rental companies, restaurant chains, retail store chains, telephone companies, electric gas and water utility companies, call center customer service operations and any type of call center operation.