Customer Satisfaction vs. Customer Loyalty
Customer satisfaction and customer loyalty are related but they aren’t the same.
For example, some highly satisfied customers may not continue to buy from you
and some highly dissatisfied customers may leave for your competition. While often
there is a direct correlation between higher satisfaction and greater loyalty it is
more important to recognize and understand what customer attributes specifically
drive loyalty.
The reason some companies have such loyal customers is that they do everything
necessary (not everything possible!) to be sure that satisfied customers are also
loyal. The way they assure this loyalty is by constantly measuring what satisfaction
attributes disproportionably contribute to loyalty.
The reason customer loyalty is so important is that over time, satisfied customers
result in lower selling costs and higher profits because they buy repeatedly and
they recommend your company, resulting in more sales.