How to Turn Customer Satisfaction into Customer Loyalty

by Patricia Lotich on July 10, 2013

Organizations that understand the importance of happy customers, need to think strategically in order to build a loyal customer base.

Successful organizations have learned that there is a difference between attracting customers, keeping customers and developing loyal customers.

Devoted customers are not only loyal to the organization, but also serve as advocates and help to solicit new customers by sharing their positive experiences.

We can all relate to a good service experience.  The question becomes, was that experience good enough for us to tell others about it?

When I think of my own personal experiences, I think of a special restaurant that my husband and I go to. The staff are excellent and they add those special touches to create a memorable experience. That is the kind of organization that I would tell my family and friends about because I want them to have the same great experience.

7 Things you can do to Influence Customer Loyalty

1. Solicit Customer Feedback

A great customer experience is what brings consumers back.  The only way to know how a customer perceived an experience is to ask them.  Solicit customer feedback and make sure that customer satisfaction is one of the critical success factors for your organization. Feedback can come from surveys or customer focus groups.  Measure and monitor customer satisfaction and share data with all levels of the organization.  Executives and employees alike should be aware of customer requirements as compared to customer feedback.  Satisfied customers are loyal customers.

2. Create Customer Centered Goals

Customer feedback should be interpreted and used to develop strategy.  This strategy should then be used to develop organizational business goals which are used to determine employee goals. Goals should be based on meeting and exceeding customer requirements and employees should be held accountable for performance that supports customer satisfaction.

3. Create a Customer Service System

There should be customer service systems in place to deliver products and services, and to deal with customer complaints and issues that may arise.  For example, a service recovery program is part of the service process with the goal of quickly addressing customer issues and complaints.

4. Process Improvement

A structured quality management program can help develop solutions to systemic problems that affect the customer experience.  This is done by continually trying to improve the way products and services are delivered to the customer.  For example, if customer feedback suggests slow process times, gather a team and figure out a plan to improve process times.

5. Manage for Service

Managing for a great customer experience should be incorporated into the day-to-day operational processes of the organization.  What this means is training and holding employee accountable for adhering to established customer service standards. For example, if a supervisor observes an employee not complying with service standards, they should coach the employee on more appropriate behaviors.

6. Compensate Based On Customer Experience

Customer satisfaction data should be used as part of the executive compensation package to demonstrate the importance of the customer experience. There should be measures in place to assess employee influence on customer satisfaction scores that should also be reflected in the annual performance appraisals and raise distribution. For example, an organization should have customer satisfaction goals that are tied to performance pay.  If the organization meets those goals it is reflected in the annual merit increase.

7. Share Business Strategy

Executives should communicate the organization’s business goals both internally (to employees) and externally (to the community).  Customers have an interest in what an organization is trying to accomplish.  For example, a business strategy might be to become the leader in customer service in a certain industry.  Customers remember organizations that make such promises.

Organizations that focus on a great service experience can create loyal customers. To do this there needs to be a constant effort from employees at all levels of the organization. Business owners should never lose sight of the importance of the customer experience and keep it at an ever-changing strategic level.

This article was first published April 20, 2010 and updated July 9, 2013.

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