Customer Retention Requires More Than Satisfying Customers
It takes more than mere customer satisfaction to retain loyal customers.
As we have pointed out frequently in the Monday Morning Marketing Memo, there is a huge difference in customer retention rates between Fully Satisfied customers and merely Satisfied customers.
This has been re-confirmed in the latest Market Force Information survey of bank customers in the United States. Released last week, this survey 2800 respondents reports that customers who are Very Satisfied are three times more likely to remain loyal than customers who view their banking experiences as just satisfactory.
I am often asked if there is a direct correlation between fully satisfied customers and customer loyalty. This survey confirms my firm belief that there is such a correlation. An amazing 98.5% of those indicating they were fully satisfied with their banks also proclaimed their continued loyalty to these service providers.
Not surprisingly, the survey also showed that 10% of customers have switched banking providers in the past year. The top three reasons for this customer attrition were:
- Not being happy with the service (32.4%)
- The bank implement new fees/rules that had an adverse affect (29.5%)
- Wanting better return on their money (27.2%)
As you can see, it takes more than just customer satisfaction to create customer loyalty.
