Why is measuring loyalty better than measuring satisfaction?
Satisfaction is not a good predictor of future buying behavior. A customer might say they are ‘satisfied’, even ‘highly satisfied’, but not intend to use you again or engage in any other behaviors desired by a company such as ‘buy more’, ‘recommend you to others’, and the like. The Loyalty Research Center uses an index that combines several questions known to define loyalty. Testing of this index against satisfaction reveals far better prediction of actual customer retention with loyalty.
Related Questions
- How does customer value management relate to customer loyalty, customer satisfaction, customer relationship management, and similar terms?
- Is there a place for both customer satisfaction measurement and customer loyalty measurement?
- What do vendors and suppliers have to do with customer satisfaction and loyalty?
