Saturday, January 30, 2010

Six Myths of Customer Loyalty

Was attending a conference recently on Loyalty, and came across an interesting presentation from the team at Corporate Executive Board, outlining the myths of customer loyalty. This of course is based on extensive global research and inputs provided by leading firms, and offers a refreshing perspective.

Am also elaborating on each of the myths with a summary interpretation and perspective

Myth 1: A satisfied customer is a loyal customer : Proactive v/s reactive being the key message

Myth 2: Loyal efforts help you retain business, not acquire new business : Principles of WOM (word of mouth) shall prevail at all times, hence the benefits of customer loyalty in generating new business, though possibly not clearly measurable at all times, definitely works

Myth 3: Loyalty efforts should focus on the attributes that customers say are most important : Functional attribute requirements arising from customer / consumer dialogue and research are important. The tipping points however lie in the latent emotional support and benefits.

Myth 4: Enrolling a customer in a loyalty programme will result in loyalty : Logical.....

Myth 5: Developing personal relationships with customers is the best way for sales to drive loyalty : Personal relationship is par for the course. Making the extra effort in understanding the client's business drivers, goals & objectives, and even challenging the client is what makes the difference.

Myth 6: Employees who don’t face customers cannot affect customer loyalty : EVERYONE contributes and can make a difference. Enhancements in invoicing design can make an impact as much as a smiling sales executive.

Am also going to be shortly publishing another listing of myths in the context of loyalty programme design, but in a lighter vein


  1. I think we are on the same page.
    Dr. B

  2. Hi, I liked your post.. Found it informative and interesting..



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    Customer Loyalty

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