In a new study, Forrester reports the obvious – customer experience affects loyalty. In case you were wondering if there was any correlation between experience and future action, you needn’t wonder anymore. Forrester surveyed 4,500 U.S. consumers about 100 brands to come up with this finding.
However, there is more to it than the obvious. The more interesting part of the survey is the comparison of the data to the results of a similar Forrester survey conducted in 2007. Across all 12 industries included in the survey, the degree of correlation between experience and loyalty increased in 2008 over 2007. The cause? The tanking economy.
Every marketer and brand manager knows that it costs more to acquire new customers than it does to keep existing customers. The results of this report tell us that this fact is even more true during an economic downturn. If you thought you could cut advertising or skimp on customer service to save a few dollars during the economic downturn, you better believe that those actions will have significant negative affects on your bottom line by disappointing customers and driving them to your competitors to find a better experience.
It’s all about experience and service when the economy is weak. Let’s face it – you can only drop your prices so low. What’s left to compete with? The answer is added value and that manifests in a great customer experience, which leads to brand loyalty and word-of-mouth marketing. Word spreads fast. Why not come up with a way to enhance the brand experience for your customers and give them something positive to talk about? According to Forrester’s statistics, the strategy works.
What do you think?
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