Strategic Planning to Implementation, Guided by Data

 

 The PDi Customer Loyalty Construct

Product and Service Features - Features deal with specific performance aspects of the product or service. These vary widely depending upon the nature of the product or service - for example, perceived attractiveness would be relevant for an article of clothing, but not for an engine component.

Systems and Structures - Systems and structures assess the organization's ability to support their commitments and give customers what they need (convenience, accurate information, flexibility in ordering, etc.). For example, any tendencies to over promise and under deliver would be revealed in this data.

Customer Relations - The human touch can make all the difference in customer loyalty. Competent representatives who understand what is and is not happening, and develop a bonds of trust and respect with their customers, often form the foundation for long-term customer relationships, even informal partnerships.

Customer Expectations - Based on the information they received, their conversations with sales representatives, and the contract they signed, customers have a set of expectations concerning what they purchased. If these expectations are not fulfilled after delivery or after the problem resolution process, customer satisfaction is compromised.

Problem Resolution - Mistakes happen, and if they are handled quickly and appropriately, they have minimal effect on customer satisfaction. In fact, marketing research suggests that superior problem resolution can actually strengthen customer loyalty by improving customer confidence in the organization's ability to deliver what was promised or quickly make it right.

Customer Satisfaction - Customers will compare their experience to perceived industry norms - how they would expect to be treated by similar competitors. Organizations who meet these industry expectations are giving their customers the value they expect. This represents a sort of industry average performance - a basic level of customer satisfaction.

Customer Loyalty - Organizational outcomes such as repeat business, strong recommendations to others, and a superior reputation require more than a favorable comparison to competitors, they require excellence. Loyalty is built by delivering more than the customer expects - the experience of being surprised and delighted. Organizations who develop customer loyalty often acknowledge it as a source of sustainable competitive advantage.

 

   
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