Customer Satisfaction & Loyalty Measurement – Model
Market Probe treats customer satisfaction and loyalty as two related but distinct concepts. A customer comes into contact with a business or its channel partners many times during product ownership. These many contacts (also known as touchpoints or transactions) offer an opportunity for the business to make the customer feel good about his or her supplier choice. We find satisfaction to be an appropriate metric to measure a customer's overall experience with a touchpoint and to understand drivers for improving customer satisfaction as shown below.Click on thumbnail to view
There may be many service or product touchpoints a customer is typically asked to evaluate, hence there are multiple measures of satisfactions. In banking, it could be satisfaction with different channels - branch, ATM, phone banking, internet banking or product-related issues like application process, sales process, loan or credit card features. In manufacturing, the service touchpoints may includes the sales process, product demonstration, service, technical support, repair service or online support, while product touchpoints may include product performance, product warranties, product updates, product financing, etc.
Unlike satisfaction metrics, there is only one metric for loyalty in terms of a customer's intention of continuing with the business or not. Even among captive customers, while short-term future purchases may be guaranteed because of contracts and other market constraints, they can exhibit poor loyalty by moving future purchases to competing brands.
Market Probe believes that loyalty is influenced by the strength of the customers' overall relationship with the company, which often can be defined by four to six loyalty pillars unique to each business sector.
Is there a common loyalty construct of attitudes and purchase intentions that can be applied to all business situations? Market Probe contends that the metric should be customized to each business.
We generally recommend two to four questions designed to reflect the business situation.