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/
• 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
DETRACTORS ARE 10 TIMES MORE LIKELY TO CEASE DOING BUSINESS WITH
COMPANIES WITHIN THE NEXT YEAR THAN PROMOTERS ARE.
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%
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.
Originally posted by BenFowler
on 05 Jan 2010.
All contributors: BenFowler
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