Loyalty versus Satisfaction - What's the Difference?

Satisfaction will not tell you if your customers will defect or your association members will drop their memberships.

Loyalty measurement captures the voice of the customer; their expectations and your performance against those expectations, as well as what you need to do to improve. Unlike satisfaction, loyalty encompasses the total customer experience; giving you a foundation for better decision making and action planning.
 

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Defining Customer Loyalty

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Customer Satisfaction and Loyalty Measurement

How do you measure customer loyalty and satisfaction – and why should you care?

While there may not be an absolute right or wrong way to measure the health of your customer relationships, there most definitely are relatively better and more effective ways of doing it out there. The Loyalty Research Center believes that our approach represents one of those better ways.

The Loyalty Research Center builds in the voice of the customer (your customer, not just any customer) into your measurement program. Our approach looks at the total customer experience, not just parts of it, or high level concepts that don’t reveal what you have to do to improve. We help you identify what it takes to nurture and grow customer advocates for your company.

Think about it. Do you have that information today? Do you really know…

  • how customers describe their total customer experience with your company?
  • what’s important to and valued by your customers?
  • if your employees can accurately represent the ‘voice of the customer’?
  • whether what customers tell your sales people and account managers truly is what they mean? Do you know what is said behind your back?
  • whether their continued business means they really want to do business with you? Do you know who your truly loyal customers are?
  • how your competitors’ offerings affect what customers think about yours?
  • the true costs of serving your customers relative to their loyalty and revenue/profitability?
Customer loyalty directly affects your company’s profitability and long-term success.

At the Loyalty Research Center, we work with clients across industries to measure and manage customer and/or employee satisfaction and loyalty.

We’ve developed our Model of Customer Satisfaction and Loyalty on the basis of solid research and years of practical experience. The customer model shows those elements necessary for understanding how customer perceptions of everyday experiences lead to desired behaviors that drive business success and growth.


Associations face similar challenges as businesses in terms of providing value to attract and retain members. In the case of professional and trade associations, where businesses often pay for employee memberships, it is even more critical that associations provide the right benefits as companies look to cut expenses.

To help associations better meet their members’ needs and in some cases, their members’ employers’ needs, the Loyalty Research Center has developed a specialty Association practice.




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