Satisfied or Loyal: What kind of customer do you want ?

Ask yourself this question…”What type of customer do I want, a satisfied one or a loyal one?”  The answer should be relatively obvious…we all want the loyal customer. You might be saying …”But wait aren’t my loyal customers, satisfied customers.” The answer is yes, but not all satisfied customers are loyal. The goal and the desire as a sales person, customer service rep, or business owner should be to make sure customers are loyal to your company.

There is a distinct difference between being loyal and being satisfied. For example, perhaps you like to eat at McDonald’s, and despite the occasional order discrepancy, you are satisfied with the taste and quantity of the food….but are you necessarily loyal to McDonald’s, perhaps. However, say the following week Burger King is running a special…. A 99 cent deal on their Whopper…and you decide to pass McD’s and get that Whopper. Are you being a loyal customer…the answer is “no.”

Customers who claim to be satisfied with a product or service will switch to another provider without hesitation when offered a lower price, more variety, and more convenience. Personally, I like to drink Coke Zero but if Pepsi Max is on sale, then there is a good chance I’ll buy Pepsi instead to save a few bucks.  It happens all the time, so how do we stop that from happening to our business?

 Customer loyalty can be measured by not just purchases but the repeat purchases made. In every sale transaction, the customer engages in a “buying cycle.” The cycle starts with customer awareness. Simply stated at this point, the customer becomes aware of a need and begins to look at options. The next step is the Initial Purchase, which is followed by Post-Purchase Evaluation. During that evaluation step, the customer reflects on his or her experience when buying the product or service. Opinions are formed based the quality of service provided, the product itself, delivery, and all the others things that might have involved the purchase. In due time, that same customer, dependent on what the product is, will look to make a repeat purchase. At this point, the customer has to decide if that product was good enough, price was reasonable enough, and the service level satisfied needs in order to buy that same product again. If the customer was completely satisfied and can’t see buying any other product, then they will decide to make that repeat purchase.

People are often like that with cars. A young man buys a Chevy Truck, and no matter what the cost is will always buy a Chevy and not think twice buying a Ford, simply because they are happy with the vehicle and the service at the dealership has always meet his need. The key to that repeat purchase is the quality of service. Business want their customers to be “addicted” to their products, and no matter how low the competition’s price may get, that client will return because of the service.

So if you want a loyal customer more so than just a satisfied customer, take a look at the service you are providing to your client base. If your company is successful in truly providing the best service in your marketplace, then your clients will stick with you no matter what your competition is doing.

Contact the author at ryank@maxpt.us or visit www.maxpt.us for more information.