Wednesday, May 28, 2008

We just need loyal customers

'Customer loyalty' is often quoted as a goal for many company execs. Loyal customers = lots of profits. Even if this is the real goal, this is the wrong starting point.

Our starting point should be this:

"Customer loyalty is not about how customers demonstrate their loyalty to us, it is about how we demonstrate our loyalty to them"

- Sir Ian MacLaurin, ex-Chairman of Tesco

Simple concept. Apparently very difficult to execute.

2 comments:

Anthony said...

I heard a Jannie Hofemeyer (I think thats the correct speeling), inventor of the Conversion Model that people are more loyal to hellmans Mayo and Heinz Ketchup than they are to their partners but maybe there is a difference between habitual behaviour and loyalty?

Paul. said...

hi Anthony, i suspect so. Thanks for the comment.

Some of us are really loyal to products. I would possibly go to another shop if I couldn't find Barry's tea. I like diet coke and will send pepsi back if served by accident.

When referring to loyalty I was thinking more about service companies - airlines, banks etc. Although I believe any company can demonstrate loyalty regardless of the product.