Customer loyalty means everything in the business world, and the formula for success doesn’t seem that difficult. While some companies have mastered the art, others lag behind. Predictability and performance may sound dull, but it keeps the customer coming back.

By Dr. Jan Stringer, Ph.D.

If the benefits of customer loyalty are ever fuzzy, skeptics only need to sit down and have a talk with the brass at Southwest Airlines and Harrah’s Entertainment.

These two are giants within their industries and are prime examples of companies that actively make customer loyalty the center of their business strategies. It’s a formula that has been proven in numerous studies: Implementing a customer loyalty program delivers stock market growth that outperforms the market average.

In the case of Southwest Airlines, the up-start airline has always realized what impacts customer loyalty and has been held up as a model of study for executives and business schools across the land. Its ability to turn an industry on its head – going from cut-rate carrier to the third largest airline in the world in passenger numbers – has inspired several books and media attention since its first flights in 1971 from a dusty Love Field in Dallas.

Meanwhile, further west, Harrah’s Entertainment languishes in the spotlight of the star-studded casinos of the Las Vegas strip. While U.S. gaming companies battled each other to build the biggest, most extravagant hotels, Harrah’s put its emphasis on something more than concrete and polished marble. Harrah’s focused on customer loyalty.

The results have been staggering. Its investment in the customer, including a strategy to go after the low-roller instead of the high ones, turned Harrah’s into the world’s largest gaming company with annual revenues of more than $7 billion.

Harrah’s has put a major emphasis on technology that benefits the customer, and that translates into customer loyalty. Its Total Rewards card is the industry standard and its recent patent that customizes hotel pricing is another step that plays into the hands of its customer loyalty campaign.

“This patent is an example of Harrah’s innovative use of technology to enhance the customer experience by leveraging our unique understanding of the customer’s value across our enterprise, not just the casino floor,” David Norton, senior vice president of relationship marketing, told Forbes Magazine in September. “This method is a valuable addition to our revenue management system, which helps us realize greater returns on our new and existing hotel assets.”

Assets, returns and customer loyalty. It’s the trifecta for a successful business. But just paying lip service to the factors affecting customer loyalty won’t do. Specifics need to be laid out according to a company’s customer base. And all companies are not created equal.

“The most important step a company can take to earn customer loyalty is to treat each customer as an individual, by providing customized service and designing its products to include various options so customers can select what’s right for them,” said Lisa Levey, Manager of Customer Relationship Services for an Arizona-based consulting agency. “The biggest mistake is to assume one size fits all. Organizations must design products and services, approach error resolution, and make business decisions with the expectation that customers have unique needs and expectations.”

Expectations from the customer will always be there. Fulfilling them takes definitive rules for maintaining loyalty, including five sure-fire ways of keeping the customer coming back.  I'll share those ways with you in my next entry.


Tags: customer loyalty, customer loyalty program, harrahs, southwest airlines

Our careers have a major impact in defining our lives. The average full-time employee spends close to 48 hours a week on the job, and it’s not always because they’re in love with what they do. There are a number of things employees dislike about their employers. Here are 10 of the most common.

Most companies like to think they have their finger on the pulse of employees. But the fact is, when it comes to what employees want from their work experience – recognition, respect, trust, fair pay and a flexible schedule – many employers are clueless. There are many common misconceptions employers have about their employees. Here are seven major ones:

Surveys Uncover Clues to Workers With a New Attitude Want Loyal Employees? Make Sure They Get Some Satisfaction Surveys Offer Insight Into Employees’ Opinions

Are Your Customers Happy? Just Ask Them
Surveying the Customer Landscape Keeps Businesses Thriving

Customer satisfaction impacts every part of a businesses’ bottom line. From profits to stock prices, customer satisfaction can be linked to every big and small business’s profits. And to maintain a steady stream of cash value and customers, companies are turning to customer satisfaction surveys to pinpoint consumer trends and provide incisive information that leads to gaining a competitive edge in the marketplace.

ADDISON, Texas – Aug. 11, 2006 – Every company management team knows that customer satisfaction is the cornerstone of any successful business, but many industry executives are more talk than action.
Wal-Mart founder Sam Walton, one of history’s most successful businessmen, had the right idea when he said: “There is only one boss. The customer.”

Establishing a strong customer base is fundamental for any successful business, since companies typically see 80 percent of their business coming from 20 percent of their customers. And there are many American success stories chronicling the coloration between customer satisfaction and corporate profitability. Most recently was a July report that Apple, Google and Symantec were among the high-technology companies with the most loyal customers. And companies that have customers who are happy with their products or services are, obviously, less likely to lose them.

All three of these tech giants provide outstanding products and services, but what they do best is listen to what their customers have to say. And the most effective tool for any business, when conducted properly, is the customer survey. Appropriate methods, like the ones employed by the National Business Research Institute, help companies identify consumer trends, capitalize on their strengths, and, most importantly, spot their weaknesses.

“To understand attitudes, opinions and behaviors, clients need to partner with trained psychologists who understand which research methodologies are appropriate for measuring organizational variables,” said Dr. J.T. West, a Ph.D. and founder of NBRI.  “They have to do this without contaminating the data through the questions, the scale, or the process. Only NBRI imposes these strict requirements in its processes.”

The Addison, Texas company has more than 20 years of experience conducting scientific and psychological research for multi-million dollar companies like American Express, Blockbuster and Cisco Systems. NBRI retains the highest standards of any survey company, using psychologists to analyze data that is comprehensive and reliable.

Accurate survey data has become even more important in a highly competitive global market. The Internet has given consumers an infinite amount of choices when shopping for products or services. Customer satisfaction statistics for major online retailers declined slightly in 2005, providing further evidence that consumers have raised their standards and expect much more. And since the customer expects more, companies are turning to surveys provided by NBRI to help grow their business.

Following NBRI customer survey results, clients receive a clear picture of what drives consumers to choose a product or service, and the reasons why they would remain loyal or leave.

“NBRI is dedicated exclusively to the business of survey research,” said West. “We can determine which variables drive productivity, profitability, and customer satisfaction. We use this knowledge to add value to a client’s study. Because we do one thing, and do it well, clients make the greatest strides forward when they call on us.”

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Company Name: National Business Research Institute
E-Mail: Info@nbrii.com  
Phone:  (972) 387-7447
Website: http://www.nbrii.com

More Information:
http://www.prweb.com/releases/2006/9/prweb432129.htm

Tags: NBRI, customer satisfaction surveys, customer surveys