When loyalty programmes backfire: loyalty, entitlement and complaints

Disappointed customers complain. And while really loyal customers may be more forgiving that others, when they do feel disappointed and complain, they are particularly difficult to recover. These general truths of business make it particularly important to understand disappointment in loyal customers.   Researchers Xiaofei Li, Baolong Ma and Chen Zhou conducted a study about … Continue reading When loyalty programmes backfire: loyalty, entitlement and complaints

The murky link between customer satisfaction and loyalty

Intuitively, it is easy to accept the claim that customer satisfaction leads to repeat purchases. After all, if you have a choice, why would you abandon a brand that has surpassed your expectations1; and why would you keep buying from a brand that has disappointed you?   Happy customers buy again. Unhappy customers, move on. … Continue reading The murky link between customer satisfaction and loyalty

Going along with customer lies can be good for business

Yesterday, child #2 lost a tooth. At night, he carefully placed the tooth under his pillow, for the Tooth Fairy... even though he knows, a-hem, the truth about Father Christmas and the Tooth Fairy. And, sure enough, this morning, when he checked under the pillow and spotted something left by the Tooth Fairy, he gave … Continue reading Going along with customer lies can be good for business

What stops customers complaining to you

If customer complaints are part and parcel of doing business (and, even, are beneficial for you), then you really want to make sure that an unhappy customer will complain directly to you, instead of switching to a competitor or taking to social media to let the world know about their negative consumption experiences. This presentation … Continue reading What stops customers complaining to you

Are you being served, yet? On waiting online

Apparently, we spend 2 to 3 years of our lives waiting for service – for instance, waiting to talk with a customer service representative, or for a meal to be served. Admittedly, this number will vary widely for the specific services accessed – e.g., private doctors vs. public health service – countries, etc. But the basic … Continue reading Are you being served, yet? On waiting online

Good experiences vs. good memories

I recently came across ‘Random Assignment’, a fabulous blog looking at the application of social psychology in daily life (interesting topics and very accessible writing – consider following it). One of the posts had a link to this presentation by Professor of Psychology Paul Rozin: Professor Rozin applies insights from psychology to understanding what makes … Continue reading Good experiences vs. good memories