Category Archives: Loyalty

Understanding your customer

There isn’t one best way to best understand your customers but whatever you choose, it really needs to start with understanding their behaviors.  For example, your customer has decided to leave and you have a way to capture the reason why.  When they say price… do you accept that?  Or do you realize that price really means something else – such as “Budget – something in my life has changed and I need more money in my budget, so this has to go or I need a cheaper price” or “Value – I just don’t see the value in this vs. what I have to pay”.  Neither of those are actually price – they are root causes of the price top level statement. 

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Proving the value of NPS

I was recently asked the question about how do you prove that measuring NPS is worthwhile (or any other loyalty metric).  It was an interesting and good question but it is sort of like asking how do I prove that love is better than not having love.  I know, I know… an odd example perhaps but also ephemeral to prove or disprove.  Here is what I think about that (NPS not love – I’ll save that for another post):

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Customer loyalty – how do you define it?

It’s been an interesting year for those of us in the customer experience realm.  Lots of passion on both sides of the fence regarding the Net Promoter Score has resulted in positive good overall – it has raised awareness of the era of customer choice.  The more aware a company and its leaders are regarding their customers and their customer needs, the better opportunity that company has to grow organically.  Having used a number of the methods espoused by the various experts, I can see the pros and cons of each of the methods.  What I find the most interesting is not what method but why they choose the method.  Surprisingly, many times that choice is made without actually looking at how their market works and how their customers behave.  Looking their first really helps narrow down the field of what methods will work best for measuring and driving customer loyalty.

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