One of the main reasons “customer satisfaction” is a
meaningless statistic is that it is not predictable, let alone measurable, as
related to business growth.
Right about all customer satisfaction people, from marketing
to award companies, are saying to me that I am a “know-nothing” human who has
no concept of business. “You must have satisfied customers or you can’t build a
Wrong. Very wrong.
“Satisfied” is the
LOWEST level of acceptable customer service.
Any hotel in the world can guarantee satisfaction because they can easily fix
what is wrong and count you among their minions. But they won’t guarantee
loyalty. THAT would take work.
Satisfaction is not an action taken because something is
wrong or something broke. Oh no, satisfaction is a feeling and an indicator of
Enter “loyalty” – the
real measure of customer response and value.
I only care about two things in my relationship with a customer.
- Will they do business with me again?
- Will they refer someone else to me?
Those are the real measurements of success. Why would I want
to measure satisfaction when it has nothing to do with a reorder? Why would I
want to measure satisfaction when it does not ensure that the customer will
stay with me?
You may say that
satisfaction leads to loyalty. I will say you have plenty of customers that are
never satisfied but still remain loyal to you.
It would seem to me that there are plenty of other words
that you could use besides satisfaction that can measure the level of
likelihood that a customer will continue to do business with me.
Words like happiness,
delight, excellent service, and WOW, are all ten times more powerful than the
If you want to know the real silliness of satisfaction, take
a look at the airline industry and telecommunications companies. JD Power gives
awards for customer satisfaction and the companies they give them to, pathetic
at service, put big banners up on the wall, proclaiming victory. If it weren’t
laughable, you would get upset about it. But it is so silly you just shrug it
These are the same companies the turn over as much as 20% of their customers annually and have the highest FTC and FAA complaint number of any business in the universe. If these same companies spent as much training their people to serve memorably as they do hanging banners all over the place, they might actually do the one thing their shareholders are hoping for… Retain customers.
Take a look at your
How many customers did you lose last year? You may have
claimed they were satisfied, and then whined to yourself that you lost them to
a lower price. Maybe a better definition of satisfaction than mediocre would be
vulnerable. All satisfied customers are vulnerable to the competition, your
competition. You may be suffering from loyalty leaks.
concentrate on customer satisfaction, now is the time to make a game plan that
protects your customers from your competitors.
What are you willing to invest to ensure that you don’t lose your best
customers to the competitors you hate the most?
And in the equation, is satisfaction one of the words that
will create insurance or sell a product? No. Your competition is hoping that
your customers are satisfied, vulnerable, and then ripe for the picking to
their memorable service and value-driven actions.
Take a look at what drives loyalty. You may say airline
miles. I say airline miles are forced loyalty. The essence of real loyalty is
perceived value combined with memorable service. Ask Nordstrom. Ask Lexus. Ask
anyone who leads their field, and they will scream “Great service breeds
It is now time to renew all of the practices you used to
when you first started in business.
The enthusiasm, the belief, the desire to serve, the attitude, and the
self-confidence that you could help anyone regardless of what it took. And you
did it, no matter what.
Take these two
actions in the following month:
- Call your top ten customers. Invite them to a celebration. Have a creative value-driven conference for a day that rewards them, and challenges them that you seek to be better next year, and need their collaborative help.
- Have everyone in your company create five new ideas of what they can do to serve better. Reward the best ideas with a thank you and money. Then reward your customers by implementing these ideas on their behalf.
If you concentrate on helping your customer win, if you
concentrate on helping your customer profit, if you concentrate on creating a
service culture rather than a sales culture, loyalty will increase, and sales
will increase organically.
Satisfaction is not a
measure of anything. It is an indicator but not a measurement.
The real measure of how it is working at your business is an “unsolicited
referral.” They tell you that everything is working so well that someone is
talking about you with such a passion and enthusiasm that it creates a
proactive phone call and an order.
That creates real
satisfaction. The satisfaction of hearing your cash register ring.
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