the Experience-Loyalty-Value CONNECTION

The buzz in the customer satisfaction world is all about the customer experience. Despite its importance, however, the customer experience is a means, not an end. Instead, experiences need to be seen in the larger contexts of customer loyalty and business objectives. For marketers to make prudent de...

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Bibliographic Details
Published in:Marketing News 2012-10, Vol.46 (13), p.24
Main Author: Lax, Howard L
Format: Article
Language:English
Subjects:
Brand loyalty
Business metrics
Consumer behavior
Customer satisfaction
Online Access:Get full text
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Summary:The buzz in the customer satisfaction world is all about the customer experience. Despite its importance, however, the customer experience is a means, not an end. Instead, experiences need to be seen in the larger contexts of customer loyalty and business objectives. For marketers to make prudent decisions, customer experiences must be designed and evaluated in terms of their contribution to strengthening loyalty and creating value for the company. Linking business and financial outcomes to loyalty and experience measures is critical both to confirm or improve the loyalty metrics being used and to determine the value of stronger customer bonds, as this is the rationale for ongoing investments in improving the customer experience. Customer experiences are the stepping stones in the continuous journey of customer loyalty and the customer relationship. Each and every step may be critical, but no single step is its own destination; and the importance of each step hinges upon its impact on customer loyalty and the customer behaviors that translate experiences into dollars.
ISSN:0025-3790