CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
In a recent article on Forbes.com, “The Final Frontier: Customer Expectations,” Robert Passikoff points to a shift in the past 15 years: customer expectations have increased significantly, rising 24 percent in all categories. After explaining how customer loyalty is measured and providing an example from the wireless carrier industry, Passikoff concludes, “…brands that are able to better meet – even exceed – growing customer expectations always end up on the top of the list.”
Tying customer loyalty scores to customer expectations is not the answer. Why? Loyalty scores are important, but they don’t take into account all the reasons customers stick with a company. The “how well” question is the field of loyalty. The “if/if not solved” is the field of performance.
Until we come up with a “complacency” or “frustrated and stuck” index and begin dissecting truly loyal, enthusiastic consumers from those who don’t have the time or resources to navigate the breaking of a contract, loyalty is one metric – but not the most important metric we can fully trust to drive improvements in customer experience and organization performance.
What is more important: exceeding customer expectations or solving customers’ problems?
Source: Driving Retention and Business2Community.com, February, 2012. Author, Linda Ireland.