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5 Mistakes in Measuring Loyalty

Are you measuring customer loyalty because it is “the right thing to do”? I spoke with a company this last week that was doing exactly that, except that because there was no unifying strategy to their efforts to do so they weren’t able to make any sense out of their data.  Their data had been corrupted by well-meaning product managers that were eager to get customer feedback on new product features.  Because the data were gathered haphazardly, there was no way to correlate causes with effects and therefore, no way to know what changes to make.

I’ve found there are 5 key mistakes that many companies make in measuring loyalty:

  1. Allowing the survey to become cluttered with product-related feedback-gathering efforts.
  2. Gathering insufficient detail because it is unclear what actions might be necessary to improve results
  3. Inability to segment & prioritize customers according to their value
  4. No Closed-loop implementation process that streamlines business improvements and keeps the affected customers in the loop
  5. Lack of accountability for business improvements derived from poor loyalty scores

More on each of these tomorrow.

  • http://thecustomerinstitute.blogspot.com Dr. B

    Those are certainly serious mistakes. I have not found them to prevalent. In my opinion, I thinkthe most egregious error is not being willing to expend sufficient resources to correct deficiencies detected by the measurement.