Why Mere Satisfaction Isn't Enough for Customer Loyalty with Jamey Lutz

Subscribe and Listen

This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:   

1. How can businesses convert mediocre customer experiences into exceptional ones?  
2. How can businesses turn unhappy customers into loyal fans? 
3. Why is mere customer satisfaction not enough to ensure long-term loyalty? 
4. How can businesses benchmark their customer experience performance? 
5. How can businesses use customer feedback to prioritize improvements that actually matter? 

Top Takeaways

• Having a customer-focused experience starts with the organization’s culture. When everyone in the company, from leadership to frontline teams, cares about service, the customer feels it. 

• Satisfied customers are not necessarily loyal. Satisfaction means their expectations were met but not exceeded. They don’t complain because there isn’t enough for them to complain about, but that doesn’t mean they are happy. So, when another option with a better offering from a competitor, such as a smaller price tag, a more convenient location, or shorter wait times, comes along, they are still likely to leave. 

• Companies need to learn from good and bad customer feedback, but they should not neglect the customers in the middle. Customers who aren’t upset but aren’t delighted either are the most likely to leave without saying a word. These customers are dangerous because there is no obvious warning sign before they simply fail to return. Businesses should focus on transforming mediocre experiences into better ones by understanding what is missing and implementing improvements. 

• When a mistake happens, how it is handled matters even more than the mistake itself. When a business makes mistakes but shows empathy and resolves the issue promptly, customers feel valued and may become more loyal than they were before. 

• While learning what your competitors are doing right, remember that your customers don’t just compare you to companies within your industry. Customers compare you to the best experience that they have had in any industry. Study world-class organizations and what they are doing to stand out. Then consider what you might be able to apply to your brand.  

• What you think is important may not always align with what the customer thinks is important. To make impactful changes, ask for customer feedback and listen to what matters most to them. Focus your energy and resources on improvements that truly matter to your audience.  

• Additionally, Jamey shares lessons on providing an exceptional customer experience from his time as Director of Quality for The Ritz-Carlton. Tune in! 

Quotes:

“If you only focus on fixing really bad experiences and celebrating great ones, you miss the danger in the middle. Customers who say, “It was okay,” will likely leave you the moment something better comes along.”  

“If a customer has a negative experience and you do an awesome job of recovering them, they will become more loyal than they would have if the problem had never occurred.” 

“Start with an end in mind. Define your desired outcomes, such as revenue, profitability, or wallet share, and work backward. Think about the strategies and changes in customer behavior needed to move the needle towards the goal.” 

“Sometimes, the game changers in customer experience come from thinking beyond your current journey map, even into areas your customers don’t even know they want yet.” 

About:

Jamey Lutz, founder and principal of Jamey Lutz Consulting and the author of Pathway to Purpose: Big Ideas for Fueling Irresistible Corporate Cultures. He served as the Director of Quality for The Ritz-Carlton, Palm Beach, and later as the Performance Improvement Leader of the Americas, where he led high-impact guest experience projects across 26 hotel properties. 

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio.