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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Needs Based Segmentation

The Loyalty Research Center performs needs-based segmentation analysis on many of our loyalty research programs. Needs-based segmentation analysis is performed for several reasons:

To identify potential ‘hidden’ segments within your customer base that may have different perspectives and therefore different ‘causes’ driving current perceptions.
Different segments may respond differently to product and service offerings. Depending on the size and value of these uncovered segments, new products or services may be developed that would strengthen the relationship.
Knowing who should not be a customer is sometimes as important as improving relationships with the right customer. Finding segments that may not fit your business model can help you avoid futile efforts with resources better spent elsewhere.

Read more about Needs-based Segmentation:

Not Every Customer is Right for You: Needs Segmentation: Helps Identify the 'Keepers'