How Satisfaction Pays
The foundation of a loyalty strategy is that customer satisfaction pays, in the long term, but can we prove it? It can be difficult to come up with an overall number (like “5% more satisfaction equates to £1,000,000 more profit”), but what’s often easier is to isolate specific mechanisms by which satisfaction contributes to increased revenue (e.g. through higher retention and recommendation) or decreased costs (e.g. by reducing avoidable contact).
In this episode Greg and Stephen discuss a recent article that shows another mechanism by which satisfaction benefits the bottom line: it reduces the cost of capital for organisations.
They take that as a jumping-off point to talk about proving the business case, and why a loyalty strategy is better for everyone.
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