A Shocking Study about Customer Satisfaction
Think customer satisfaction is enough? We have some terrifying news.
A few months ago, while researching customer satisfaction metrics, we discovered a study that disclosed a shocking fact about customer satisfaction. Before we reveal this terrifying fact — which will likely surprise you as it did us — let’s categorize customers into three distinct groups.
Customer Group 1: Dissatisfied Customers: Dissatisfied customers are those who are not satisfied with our business.
Customer Group 2: Rationally Satisfied Customers: Rationally satisfied customers are those who, despite being satisfied, lack an emotional connection with our business.
Customer Group 3: Emotionally Satisfied Customers: Emotionally satisfied customers are rationally satisfied customers who possess an emotional connection with our business.
So far, so good, right? Indeed, based merely on these three customer group descriptions, you might reasonably assume that your business will probably retain more Group 3 Customers than Group 2 and Group 1 Customers. And your assumption would be correct.
You might also reasonably assume that your business will probably retain more Group 2 Customers than Group 1 Customers. And your assumption would be wrong.
What?
That’s right: the study concluded that “[r]ationally satisfied customers…behave no differently than customers who are dissatisfied.” (Source: Human Sigma: Managing the Employee-Customer Encounter)
Specifically, the study made the following observation about a large U.S. bank:
“[O]ver a six-month period, emotionally satisfied customers ended their relationships with the bank by completely closing their accounts at rates that were 37% lower than rationally satisfied customers’ rates. Dissatisfied customers, on the other hand, scarcely differed from rationally satisfied customers in their attrition levels.” (Source: Human Sigma: Managing the Employee-Customer Encounter)
In other words, rationally satisfied customers are just as likely to have the same attrition rates as dissatisfied customers.
And that, friends, is downright terrifying. In other words, rationally satisfied customers are just as likely to abandon your business as dissatisfied customers.
For example, I’m a rationally satisfied customer of American Airlines, while I’m an emotionally satisfied customer of Southwest Airlines. Indeed, when I have the discretion to select an airline of travel, I consistently choose Southwest Airlines, even if Southwest’s fares are higher. Why? Because I possess an emotional connection with Southwest Airlines.
Why does this matter? In short, we tend to place too much emphasis on customer service survey results that capture rational, as opposed to emotional, customer satisfaction levels. And, in doing so, we provide ourselves with a false sense of security, in light of the fact that rationally satisfied customers are just as likely to abandon our business as dissatisfied customers.
Given the above, you probably have two questions:
- First, how can our business establish emotional connections with customers?
- Second, how can our business measure emotional, instead of rational, customer satisfaction levels?
Those are both excellent questions that we’ve addressed in How to Create Emotionally Satisfied Customers.
And did you know that we offer engaging and practical customer service training onsite at your business or organization? Learn more by visiting our website, and feel free to chat with us when we are online.
In the meantime, have an emotionally “customerific” week!
Mark