Happy People Are More Loyal Customers
July 19, 2012 4 Comments
I’ve been following the research on happiness for several years, because I think it has a strong link to customer experience. The theory is that happy people tend to be more loyal customers and more engaged employees.
So I took a look at our consumer data to see if there’s a quantifiable link to loyalty (look for the same type of analysis around employee engagement later this year). My analysis looked at the likelihood of consumers to recommend companies across 18 industries based on whether or not they agreed with the statement “I am typically happy.” Please note that we were not asking consumers if they were happy or unhappy with a company.
It turns out that happy people are more likely to recommend companies across all 18 industries. The largest gap between happy and unhappy recommenders is in rental cars, where happy people are more than twice as likely to recommend. Even the smallest gap, 11 percentage points for retailers and parcel delivery services, is still substantial.
In my next post, I’ll examine which consumers are happy.
The bottom line: Happy people are more loyal customers