loyalty service profit chain
TRANSCRIPT
Finding the Gorilla in the Data:Five Things We’ve Learned from
Talking with 100 Million People
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where the data comes from…
Customer loyalty Employee loyalty
SMG measures
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#1 Satisfied customers aren’t loyal
5 things we’ve learned from talking with 100 million people
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OVERALL SATISFACTION
5Highly
Satisfied (Top Box)
50%
Zone of Affection
#1 Satisfied customers aren’t loyal
1 2Highly
DissatisfiedDissatisfied
2%2%
Zone of Defection
Zone of Indifference
3 4
Why SatisfiedCustomers Defect
Neither Satisfied
38%
8%
Don’t focus on customer satisfaction.
Focus on customer loyalty!
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#1 Satisfied customers aren’t loyal #2 Customer loyalty drives sales
5 things we’ve learned from talking with 100 million people
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9% 10%
22%
42%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Hi
ghly
Likely
Overall Satisfaction Rating
Likelihood to Return
‘Highly Satisfied’ customers are 2 times more likely to Return
SMG Client Data
2.1x I
ncrea
se
top box 5’s are twice as loyal as 4’s
1 2 3 4 5Highly
DissatisfiedHighly Satisfied
(Top Box)Dissatisfied Neither Satisfied
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7% 7%
17%
32%
89%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Hi
ghly
Likely
Overall Satisfaction Rating
Likelihood to Recommend
5’s drive new and lapsed customer trial
SMG Client Data
2.8x
Increa
se
highly satisfied customers are almost 3 times more likely to recommend
1 2 3 4 5Highly
DissatisfiedHighly Satisfied
(Top Box)Dissatisfied Neither Satisfied
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#2 Customer loyalty drives sales
Same StoreSales Growth
Intent to Return& Recommend
Overall Satisfaction
Friendliness
Speed of Service
Quality
Service attributes drive satisfactionSatisfaction drives loyaltyLoyalty drives sales growth
SMG Client Data
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#1 Satisfied customers aren’t loyal #2 Customer loyalty drives sales#3 Inconsistency is the enemy of loyalty
5 things we’ve learned from talking with 100 million people
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56%
89%88%88%87%
94%93%
42%39%
47%
35%
50%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Speed Friendliness Atmosphere Taste Cleanliness Temperature
Top
Box
Per
cent
SMG Client Data
customers tell us there are huge variances in their experiences across multi-unit organizations
Boxes represent range of scores for at least 95% of the restaurants (+/- 2 standard deviations from mean) or the most extreme score for skewed distributions. Restaurants with 30 or more responses were included.
The gulf between satisfied customers and exceptionally satisfied customers can swallow a business….
Harvard Business Review
#3 Inconsistency is the enemy of loyalty
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#1 Satisfied customers aren’t loyal #2 Customer loyalty drives sales#3 Inconsistency is the enemy of loyalty#4 Loyal employees drive outstanding
performance
5 things we’ve learned from talking with 100 million people
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The Service Profit Chain
Adapted from “The Service Profit Chain,” Heskett, Sasser, & Schlesinger, 1997
EmployeeSatisfaction
EmployeeSatisfaction
RecommendTo
Buy From
RecommendTo
Work
EmployeeLoyalty
CustomerSatisfaction
CustomerSatisfaction
Sales
Sales
LikelihoodTo
Recommend
LikelihoodTo
Return
CustomerLoyalty
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Loyal employees drive comp sales
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#1 Satisfied customers aren’t loyal #2 Customer loyalty drives sales#3 Inconsistency is the enemy of loyalty#4 Loyal employees drive outstanding performance#5 Great problem resolution creates apostles
5 things we’ve learned from talking with 100 million people
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76%
28%18%
10% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
HighlyDissatisfied
Dissatisfied Neither Satisfied HighlySatisfied
great problem resolution improves overall satisfaction dramatically 945 guests experienced a problem and brought it to the
staff’s attention
Problem Resolution Rating
OSA
T To
p Bo
x
SMG Client Data
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59%
76%
28%18%
10% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
HighlyDissatisfied
Dissatisfied Neither Satisfied HighlySatisfied
NationalTop BoxAverage
great problem resolution improves overall satisfaction dramatically 945 guests experienced a problem and brought it to the
staff’s attention
Problem Resolution Rating
OSA
T To
p Bo
x
SMG Client Data
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A customer with a problem is anopportunity to create an apostle
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#1 Satisfied customers aren’t loyal #2 Customer loyalty drives sales#3 Inconsistency is the enemy of loyalty#4 Loyal employees drive outstanding performance#5 Great problem resolution creates apostles
5 things we’ve learned from talking with 100 million people