Series 1: Episode 7What is loyalty, what are the financial benefits of loyalty to a carrier or hardware brand and how can this be grown and managed? Primarily consumers are easily swayed on price; are rarely or truly loyal, and mapping the intricacies of customer satisfaction against the lifecycle is challenging. One of the principle mistakes made by wireless organizations is to correlate satisfaction directly to loyalty when the two are actually very different. Satisfaction is just that, an end-user’s degree of satisfaction at any given time in the customer lifecycle. Often measured by a Net Promoter Score (NPS), customer satisfaction seeks to understand whether the end-user’s expectations have been met. So, we put loyalty in the blender, look at its constituent parts, and seek to understand the nature of the end-user relationship to determine the experience that meets the customer’s brand promise. Subscribe via Tim Deluca-Smith, VP Marketing at WDS, hosts Episode 7 with guests Craig Rich, CMO at WDS, Richard Fogg, Managing Director at CCgroup and Paul Nolan, Associate Director & Head of Telecoms at CCgroup. Show NotesAre you loyal, truly loyal?Take your pick, there’s habitually, emotionally, intensely loyal, insert or lazily loyal.Is it difficult to be loyal to a service?Do you actively encourage a brand?Are wireless carriers mistaking loyalty for satisfaction, can consumers ever be loyal to a service provider?It’s not the product of a single experience, its lots of different experiences over a period of time.Most service providers treat tenure as loyalty.Ahh! There’s always retention.How is the industry recognizing and building loyalty?Managing loyalty through customer experience.Thanks Neelie Kroes and Viviane RedingThere are 2 real traits/attributes to loyalty, forgiveness and resistance to offers and price promotions. How do you build on these attributes?You can't buy loyalty, they are a series of interactions that you have with the brand.The drive for the race to the bottom.If you acquire me on price, then you'll lose me on price.Should loyalty be based on price or value?What are the metrics used to segment customer types?Where’s the end to end view, and what metrics should be captured?Customer Lifetime Value and maintaining profitability.How much revenue can you extract from a customer?Risky operator strategies are rewarding bad behavior, patching over churn risks with a free phone or extending the inevitable.Are operators doing enough work to keep the customer?Give me a reason not to complain.Brand expectations, when it dips below my tolerance level, I churn.How much are you willing to forgive? Forgiveness ratio.How do you measure loyalty? It's tricky.It's not tenure and it’s not spend.Net Promoter Score. That’s questionable. Is it attach rates?Loyalty. Will it blend?The end-to-end customer experience.Product, care and retail. A holistic view of the customer.Traits and departments of loyalty. Why did your customer really choose you?Understanding the initial engagement is a key.Direct Download Episode to MP3