Amazon.com, Costco, and USAA Are The Most Recommended Companies

In the 2011 Temkin Loyalty Ratings, we examined three elements of loyalty that includes the likelihood of consumers to recommend U.S. companies to their friends and relatives. I decided to take a closer look at the companies with the most, and the least, percentage of consumers that are likely to recommend them.

Here are some observations of the results across the 143 companies we examined:

  • Amazon.com, Costco, and USAA are on top. No surprise; these companies do well in just about every measure of loyalty.
  • Southwest Airlines and Vanguard stand out. Besides USAA, Southwest Airlines and Vanguard are the only companies that aren’t retailers or hotel chains on the top 20 list.
  • Anthem, Blue Shield Of CA, and Charter Communications are on the bottom. Led by Anthem, Blue Shield Of California, and Charter Communications, 15 companies had less than 50% of consumers willing to recommend them.

We also looked at the level of consumer recommendations compared with industry averages. This analysis showed that:

  • USAA and Regions outperform the most. Led by USAA (credit cards and insurers) and Regions (banks), seven firms have 10 percentage points more consumers willing to recommend them compared with their industry average. The others: Southwest (airlines), Amazon.com (retailers), TriCare (health plans), and USAA (banks).
  • Gap and Radio Shack underperform the most. Led by Gap (retail) and Radio Shack (retailers), five companies fall at least 10 percentage points their industry average level of recommendations. The others: US Airways (airlines), Super 8 (hotels), and Anthem (health plans).

The bottom line: Recommendations are an asset that companies must cultivate.

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.

One Response to Amazon.com, Costco, and USAA Are The Most Recommended Companies

  1. Joanna Jones says:

    Great post–customer loyalty is indeed one of the keys to a thriving brand and increased profits.

    I’d like to add just a few thoughts on maintaining and fostering customer loyalty. (The companies with high loyalty scores pay close attention to all of these factors)

    1. Employees:
    Who you hire absolutely matters. Select candidates who have the necessary skills, the capacity to learn and grow, and above all, a great attitude. Customer-focused employees are one of a company’s most valuable assets.

    2. Training
    Develop an effective training program that gives employees the knowledge and skills to excel at their jobs. Insecure employees who don’t feel confident in what they’re doing will not serve your customers well.

    3. Create Incentive Programs for Employees
    Acknowledge and reward your employees! Employee of the Month-type programs are a great way to show your appreciation. Instead of focusing on numbers (if you have a sales department), try instead to focus on employees who receive the best feedback from customers.

    4. Loyalty Programs for Your Customers

    Show your customers you appreciate them, and offer incentives for them when they continue to reward you with business.
    Offer discounts or gifts if a customer refers business. Keep track of purchases and reward customers with a free product or service if they’re loyal to your company. Another great incentive? Free shipping! Customers tend to choose free shipping over a discount, even if the discount would have saved them more money.

    For a more complete discussion on this topic, please see http://www.impactlearning.com/the-road-to-customer-loyalty/

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