Retailers Lead, TV Service Providers Lag In Loyalty

I just published research called How Loyal Are Consumers? Not Very that examines the loyalty that consumers have with 113 large firms across 12 industries: airlines, banks, cell phone service providers, credit card providers, hotels, insurance firms, Internet service providers, investment firms, medical insurance companies, PC manufacturers, retailers, and TV service providers.

We asked 4,500+ US consumers about three areas of loyalty:

  1. Willingness to consider the provider for another purchase
  2. Reluctance to switch business away from the provider
  3. Likelihood to recommend the provider to a friend or colleague

Here are some of the industry-level findings (in terms of the percentage of loyal customers):

  • Willingness-to-repurchase
    • Leaders: Retailers (89%) and Insurers (82%)
    • Laggards: TV Service Providers (69%) and ISPs (73%)
  • Reluctance-to-switch 
    • Leaders: Retailers (80%) and Investment Firms (73%)
    • Laggards: Airlines (62%) and TV Service Providers (63%) 
  • Likelihood-to-recommend 
    • Leaders: Retailers (81%) and Insurers (75%)
    • Laggards: TV Service Providers (59%) and Health Plans (60%)

Here are some of the company findings (ranked relative to their industry averages): 

  • Willingness-to-repurchase
    • Leaders: USAA credit cards (+24%), Southwest Airlines (+13%), and credit unions banking (+13%) 
    • Laggards: US Airways (-18%), Sprint (-16%), and RadioShack (-13%)
  • Reluctance-to-switch 
    • Leaders: USAA credit cards (+20%), Apple (+19%), and Hampton Inn (+18%)
    • Laggards: US Airways (-18%), Sprint (-16%), RadioShack (-15%), and Washington Mutual banking (-15%)
  • Likelihood-to-recommend 
    • Leaders: USAA credit cards (+26%), Kaiser (+17%), and Southwest Airlines (+17%)
    • Laggards: US Airways (-18%), Compaq (-17%), and RadioShack (-16%)

The bottom line: What are you doing to make your customers more loyal?

About Bruce Temkin
I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, marketing, interaction design, customer service, and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

2 Responses to Retailers Lead, TV Service Providers Lag In Loyalty

  1. Hey Bruce, I’ve been following your work at Forrester for years and this is more great information on customer loyalty trends. Did the surveys also gather any insight as to why customers are more or less loyal within these industries? I would think that may help tie together the differences between industries as well, and indicate which are commodities and which are considered differentiated.

    Thanks … Bryan

    • Bruce Temkin says:

      Bryan: Thanks for the feedback. The survey does not directly provide the “why” about loyalty. But there are a number of different questions that we’ve looked at together to gain some of those insights. Unfortunately, we’ve only done that analysis for client projects so I don’t have any published research that I can talk about.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 2,795 other followers

%d bloggers like this: