Does customer satisfaction = customer loyalty?

By Michele Prescott on 26 Mar 2009

A recent experience got me thinking about “customer satisfaction”.  And how delighted we are when research reveals a high satisfaction rating.  Which often becomes a measure of customer loyalty and commitment.

My mobile phone provider (who shall remain nameless!) wrote advising that I will soon be charged $2.20 to receive a paper bill.  And they urged me to register for online billing.  Following their step-by-step instructions, I attempted to do so.  Nearing the end of my 3rd attempt, the final click returned the screen “Sorry, this page can no longer be displayed”.  Frustrated, I emailed saying I wasn’t going to try again, and requesting they register me.

A couple of days later I got an email saying this had been done.

A couple of days after that, I received a call from their Customer Service Centre conducting a survey about how satisfied I was at the handling of my complaint. Of course I was satisfied they responded.  Of course I was satisfied they dealt with my problem.  Of course I was satisfied the communication was personalised (their words, not mine).  And so on.  No doubt my survey returned about a 90% satisfaction rate.

But am I a 90% satisfied customer?  Absolutely not!  About 20% would be more accurate.  Would I recommend them?  Probably not.  Am I a loyal and committed customer?  I have to stay with them, because I just signed up for another 2 years.  But that doesn’t mean I’m loyal, nor committed.  In fact, I’m really peed-off!

It’s interesting they wanted to know how satisfied I was with their response to my complaint, rather than exploring the dissatisfaction that led to my complaint in the first place!

For me, this highlighted a couple of things.  (1) If we ask customers to do something that is mostly for the organisation’s benefit, don’t make it hard for them to do so.  And maybe even try to make it look as though it could be to their benefit!  (2)  Beware the “satisfaction” measure.  Like me, how many other customers are “satisfied”, but a long way from being loyal or committed … which is the only thing that’s truly worth knowing.

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About the Author

Michele Prescott has written 3 posts on BCM: Two Cents.

3 Comments

  1. Ian says:

    It seems like they were more interested in how they handled the complaint rather than addressing what the actual complaint was about.

    It kinda reminds me of the Mac ad where the PC guy is stacking up cash for ‘advertising vista’ as opposed to ‘fixing vista’.

    http://www.youtube.com/watch?v=do5_eLCEAVo

  2. Kevin Moreland Kev says:

    I agree and its just as easy to confuse inertia and habit as measures of loyalty too.

  3. Lisa says:

    Couldn’t agree with you more.
    It would appear there might be a bit of a false economy regarding this satisfaction measure i.e. it’s been implemented for measuring KPIs rather than to establish and correct issues that exist.
    The old adge, we value most what we can measure seems right here. Unfortunately.

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