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  1. #1
    Join Date
    Oct 2001
    Location
    Ohio
    Posts
    8,067

    Customer Satisfaction vs. Customer Loyalty

    I find myself chuckling quite a bit when browsing some sites. How many of you have seen the famous advertising pitch "97% of customers are satisfied with our services!" Is that something to be proud of though? Just at the tip of the ice berg, that means an obvious 3% aren't satisfied, who's to say that I won't find myself in that 3% range?

    The unfortunate side is that satisfaction means absolutely nothing to you or I as the business owner. The satisfied is only that; satisfied! When you're satisfied with a service how often is it that you tell others about it? Not often, only when you're asked most likely. And how often is it that you purchase that service again? Again, probably not that often -- instead you'll probably weigh the options, and frankly go with who is the cheapest, rather than who you have dealt with before.

    Loyalty instead of where it's at! Imagine instead of saying 97% of our customers are satisfied, you could say 95% of our customers have referred others. That's impressive! When someone refers another, they're not only putting their confidence in you, they're putting their name on the line hoping that you will also amaze their referral the same way that you have amazed them as the customer.

    "All of our representatives are currently busy. Your call will be answered in the order it was received."

    Is that NOT the most obnoxious thing you've heard? Oh it is, actually. Is that what is defined as customer service, assigning your customer as another number, that nobody cares about? Imagine if hospitals followed this theory; The guy with the runny nose would be served first, before the guy who just had a heart attack. If we relate that to customer service, you just lost one customer as the heart attack victim probably died as they waited for service!

    To fix this problem though, we have to look at how we think of the customers. I've compiled a list of common listed ideas that support representatives think of customers ...
    1. demanding
    2. cheap
    3. disloyal
    4. lying
    5. over bearing
    6. past due
    7. back stabbing

    Those are right there 7 different wants that the customer could be described. I feel there's really 8 ways though ... yes I intentionally left off one. Would you like to know what the final, and most important one is? PAYCHECK! HELLO! Where does the money actually come from? You could say the boss pays, but really the boss is just part of the distribution line, and the customer is where the money originates. With them, you have no paycheck. Next time you're dealing with a customer, think about what you would rather have - Ramen Noodles or a Filet Mignon, with some wonderful pie for desert? When you're dealing with that customer right then, you're choosing what you want to eat later that day. Make them loyal and I hope you enjoy that steak.

    WE'RE NOT OVER YET! Terry how do you make a satisfied customer, a loyal customer? By going above and beyond what they need! Next time that customer submits a support, fix their problem, and explain what the problem was. Don't stop there though, make sure you do it a courteous, personable manner. None of the "DEAR IDIOT NUMBER 55." Figure out the customers name, visit their site. How can you earn a loyal customer, by intriguing them and having them join a discussion. How hard would it be to visit their site for, oh just 30 seconds, and end your reply with "You have a wonderful site on flowers. Our wedding anniversary is coming up soon, what would you recommend I get my wife?" Not only is it showing the customer that you have taken the time to take an interest in their life, but it's also giving them a chance to make some money back as they in turn bring out the sales person in them.

    Remember what they say, customers talk. You'll be lucky to have 3 people talk about you if just satisfy their needs. Make 'em loyal, and you might just have 20 talk about how great your service IS.. Get in an argument with them, and you'll be lucky if only 50 talk about how poor your service WAS.

  2. #2
    inogenius...very true and I agree strongely. Some customers I have noticed aren't worth the money. Loyalty = -1 and Demanding way to much and being cheap. But mostly the loyalty thing is true and if talking to a client via MSN I usually check out their site comment on it .etc

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  3. #3

    Lightbulb

    Quote Originally Posted by inogenius View Post
    Customer Satisfaction vs. Customer Loyalty
    In web hosting or in any other business for that matter, customer loyalty comes with customer satisfaction. So as for web hosting industry you should provide good support which must include 24/7 support , Live chat, help tickets etc etc, and keep your customers waiting for hours to get a response to their support request is a big turn off, you should never do that if you wanna go up in the ladder. You must have a fast response time and the avg response time should within 30-60 minutes. And even after you have provide and solved the relevant support issue, its always good to follow up and see whether your client is satisfied.
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  4. #4
    very valuation arguement. Thanks for sharing!
    Chad Michael Murray >> House of Wax

  5. #5
    Join Date
    Jun 2005
    Posts
    3,083
    Well you ca see this in 2 ways.
    Some people may like if you tell them how nice the website is and what recommendation do you have for flowers on my anniversary. Others could just think, how unprofessionally that is and it has nothing to do with the business.

    Anyway I have tried that approach in the past and the problem is that people then abuse. They start talking about anything else on the Chat or phone except the problem, i had one guy that actually then made questions for 2 hours, just because i was to nice.
    This is good if you have time, but not if you have other people waiting on line.

  6. #6
    Join Date
    Feb 2006
    Location
    Istanbul, Turkey
    Posts
    3,215
    And who exactly is that "Terry"?

    Telling people they have a nice website is definitely one of the best ways to keep them with you (after you assure your servers are up!). But about asking their opinions... That can lead you to a 2 hours conversation on something you have no interest. I know from experience... Bad days.

  7. #7
    Join Date
    Sep 2002
    Location
    Among the corn
    Posts
    10,621
    Remember what they say, customers talk. You'll be lucky to have 3 people talk about you if just satisfy their needs. Make 'em loyal, and you might just have 20 talk about how great your service IS.. Get in an argument with them, and you'll be lucky if only 50 talk about how poor your service WAS.
    Very, very well put. It is actually very true that individuals are more likely to "complain" than to "praise" someone. Why? Because it's human nature. It's how the beast acts, and it is very true.

    The guy with the runny nose would be served first, before the guy who just had a heart attack. If we relate that to customer service, you just lost one customer as the heart attack victim probably died as they waited for service!
    Again, very true. Not only would you "lose a customer", but you'd face a potential lawsuit (in this case). Emergencies should always come first. Unfortunately, everyone has an "emergency" when it's their own problem that's being looked at, and everyone's "emergency" is more important than the next guy's.

    The hosting business is really ideal for repeat business. If you've got hosting XXX client, they should have to just "set it and forget it" (to quote the infamous Ron Popeil). What does this mean?

    Customers should simply be able to upload their website to your server, and be done. No if's, ands, or buts. No questions, no "contact support for XXX".

    That is how an ideal internet business should run. If you gained clients monthly, then there's no reason you should be losing them, for any reason, UNLESS you just don't pass the bar for support.

  8. #8
    Join Date
    Oct 2001
    Location
    Ohio
    Posts
    8,067
    Quote Originally Posted by Harzem View Post
    And who exactly is that "Terry"?
    That'd be me.
    Terry Myers
    Campaign & Social Media Manager @ OnApp.com

    OnApp - Automate Everything, Everywhere.

    Interested in OnApp? Give it a try with our 24 hour demo.

  9. #9
    A satisfied customer is a loyal cstomer

  10. #10
    Join Date
    Jun 2009
    Location
    Toronto, Ontario
    Posts
    104
    client loyalty is extremely under rated but so essential

  11. #11
    Join Date
    Aug 2010
    Posts
    80
    Quote Originally Posted by inogenius View Post
    Imagine instead of saying 97% of our customers are satisfied, you could say 95% of our customers have referred others.
    This is a great find. May be this brings in more like minded loyal customers without the cost of advertising.

  12. #12
    Join Date
    Jul 2010
    Location
    montreal
    Posts
    753
    nice post sometime is hard to get loyal custumer but great advice
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  13. #13
    Join Date
    Sep 2010
    Location
    Vancouver, BC
    Posts
    75
    Thanks for writing this! I'm amazed how many businesses (both web hosts and other businesses) don't seem to understand the importance of customer loyalty. Executives, employees, anyone involved in customer relations should be aware of this. When you *delight* and surprise the customer, of course they will bring in more customers and stay loyal to your business.
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  14. #14
    Join Date
    Oct 2010
    Location
    Poland
    Posts
    251
    Impressive article. That is true. Many customers nowayds are very demanding but I am trying to take it as a business challenge.It is difficult to make your client loyal but making every efforts on that is certainly worth it. I am trying to understand personal problems of my clients. Yes sometimes it is hard but I preffer customer satisfaction than even my own. If argument occurs and I am sure that right is on my side I will let my customer win, I always do. Customers is most important even if I am loosing time or money in that case. You need to respect and treat professional your clients and I am pretty sure that it will pay off in the future.
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