If you are just getting started out in business, it”s reasonable to wonder why customer loyalty is important. Certain kinds of enterprises might seem like they don”t really rely on customer loyalty. Some small, web-based companies can get away with minimal customer loyalty … but firms like retail outlets and restaurants can”t survive without it!
The importance of customer loyalty is unavoidable even for the largest businesses. Companies that we might think of as powerful and practically inescapable regularly suffer millions in losses thanks to declines in overall customer satisfaction! If you want to know why customer loyalty is important, just think of these big firms and how much better they could be doing.
Let”s look at five major companies with painfully low customer loyalty and satisfaction. Even though these are brands with high name recognition, customers are willing to “jump ship” at a moment”s notice, so any brand loyalty they have is often created by a sense of convenience. When it comes to retail or dining, of course, it”s easy as could be for customers to switch!
That means that, unlike these guys, you always have to be working toward better customer service. If you”re not, you can easily find other businesses have divided up your customers for themselves. Nothing causes a small- or mid-sized company to dry up faster than a reputation for bad customer service. That said, here”s a quick list of the major firms you should try not to be like.
Five Companies With Dismal Customer Loyalty and Satisfaction
1) Bank of America
The nation”s largest bank is also one of the most disliked – and not just because of people”s perception of finance in general. Capricious behaviors, erratic customer service, hidden fees, and constant account lock-outs “for your protection” all impact the image of this giant and ubiquitous bank. Most people have other options and take them in a hurry.
2) Dish Network
Fairly or not, Dish Network is widely reputed for awful customer service. Customers have reported being denied refunds that they were entitled to, insulted, and worse. Billing is hard to figure out, and some customers have discovered that when they do figure it out … it”s wrong. In many markets, Dish is losing ground to its competition.
3) JPMorgan Chase
Another big bank? JPMorgan Chase is known for its eye-popping interest rates and overdraft fees. It”s also a victim of its own success, with customers complaining that its overall quality of service has gone downhill since it started growing faster … in 2007. There”s no telling how low its consumer satisfaction scores are going to sink now.
4) AT&T Mobility
In a highly competitive field, AT&T Mobility is the company that often ranks dead last in service quality. Customers in major cities like New York and San Francisco are always asking “can you hear me now?” thanks to dropped calls. Compared to some of the other big guys, AT&T Mobility also has a limited coverage area.
A company that everybody uses but nobody likes? Facebook is constantly changing its user interface at the expense of customer experience, usually to provide incentive for advertisers. It is also known for what just might be the most capricious attitude toward privacy on the “net, outright hiding important privacy settings throughout much of its existence.
Massive national and international companies like the ones listed here can limp on by without good customer service, but their market share and overall goodwill is bound to erode until they have to make a change. As the owner of a small or medium-sized business, the importance of customer loyalty can”t be overstated: you can capture dissatisfied customers from your local and even large competitors by making a commitment to customer care. In retail and dining, quality systems like good point of sale systems can make a high level of quality easier to maintain!