Article

By Ben Fowler*

Loyalty is the Answer, Not Discounting

The Strativity Group’s 2009 Customer Experience Consumer Study is revealing for the golf industry, says Ben Fowler, PGA, golf facility research and consulting sales manager for the National Golf Foundation. This study shows that the No. 1 way to grow a business is by increasing customer loyalty. “By growing your customer loyalty, your golf business will benefit through decreased customer churn, the ability to charge higher prices than your competitors and increased wallet share,” Fowler says. “Clearly, the empirical evidence demonstrating the link between customer loyalty and profits is a compelling case.”

The study reveals:

• 52 percent of dissatisfied customers, or detractors, expect discounts of 5 percent or more to continue doing business with a company; no loyal customers expect discounts. Consumers are very clear about what they are seeking from the experiences companies deliver: quick and effective issue resolution, common sense and discretion, employees who exceed expectations, and ease/ simplicity.

• More than 70 percent of consumers surveyed indicate that they are willing to spend 10 percent or more with businesses if those businesses exceed their expectations.

• Loyal customers, or promoters, are almost three times as likely to expect to continue doing business with companies for another 10 years or more than dissatisfied customers.

• Dissatisfied customers are 10 times more likely to expect to withdraw in the next twelve months than their loyal counterparts.

• 40 percent of loyal customers said that they are willing to pay 10 percent or more to continue purchasing from companies delivering great experiences, in contrast with 9 percent of dissatisfied customers. GCI

DETRACTORS ARE 10 TIMES MORE LIKELY TO CEASE DOING BUSINESS WITH COMPANIES WITHIN THE NEXT YEAR THAN PROMOTERS ARE.

52% of detractors say that they will continue doing business with a company only if they offer a discount of 5 percent or more. Conversely, promoters not only don’t require a discount, they responded that they will pay more. IN FACT, 40% of promoters said they would pay 10 percent or more to continue doing business with the companies that they are loyal to.

MORE THAN 70% of customers responded that if the business exceeds their expectations they are willing to spend 10 percent or more with them. Source: Strativity

Credits

Originally posted by BenFowler on 05 Jan 2010.
All contributors: BenFowler, ClifKussmaul, LynnwoodBrown,
hand
Thank the Authors! Cancel

Post Fan Comment!

If you enjoyed reading Loyalty is the Answer, Not Discounting, you can post a note to the authors that contributed to the article. Your positive feedback is greatly appreciated! The notes are posted to the contributing author's Member Page (which you can view by clicking on the author's name above).

If you have any questions or constructive criticism, please don't post them here. Instead, click on the "Discuss" tab to leave a note on how to improve the article.

Subject:
Message:

Rate This Article

rated View top-rated articles!

You need to Login or register to rate articles.

Accuracy
12345
My vote: 0, Total votes: 0, Avg. vote: 0
Usefulness
12345
My vote: 0, Total votes: 0, Avg. vote: 0

Discuss

This discussion page has not yet been started.

You have reached a discussion page that is currently empty. GolfBizWiki discussion pages are where people talk about how to improve a specific page. Typical topics include:

  • Does this page follow the GolfBizWiki Writers And Editors Guide?
  • Is the content on this page appropriate for wikiHow?
  • Is this article helpful or useful?
  • Is this article accurate?
A discussion page is an ideal place for two or more people with conflicting views to civilly reach consensus about how a page should be edited. By having these discussions off the topic page, GolfBizWiki community members can converse and agree on how to best improve the page.


Please Login or register to post comments.