Customer satisfaction is a term we’ve all seen on billboards and heard in ads—“100% satisfaction guaranteed.” But what does that really mean? Does it imply the alternative is 80% satisfaction? In today’s business world, customer satisfaction has become an outdated and inadequate measurement strategy. It’s no longer enough to ensure customer loyalty, and this is one of the reasons many businesses are trapped in price wars, forced to discount to stay competitive.
Delivering customer satisfaction is merely giving people what they paid for—a basic transaction where the experience is often only surface-level. This type of interaction may tick the boxes of efficiency, having stock, and a fair price, but it rarely builds a lasting connection. The problem is that many businesses have grown complacent about service. Think about it: how often are you truly wowed by your purchasing experiences? If you look at your own personal transactions, only about 15% likely go beyond your expectations. That’s where the hidden opportunity for optimising loyalty lies—beyond satisfaction, in customer appreciation.
The Powerful Distinction of Customer Appreciation
Think about the people in your life that you truly care about. What stands out is not just what they do but how they make you feel—a deep connection based on appreciation. The same concept applies in business. The companies you’re most loyal to have likely done more than just meet your expectations; they’ve exceeded them, fostering a meaningful relationship.
Customer appreciation is a powerful and profitable currency that is often misunderstood and underutilised. It’s one of the biggest weapons a business can wield against its competitors. Yet, the challenge lies in embedding customer appreciation into the very culture of your business.
It’s nearly impossible to achieve high customer loyalty with an average team culture. Most companies fail to recognise the critical link between a strong internal culture and exceptional customer experience. When customer appreciation, not just satisfaction, becomes the goal, the impact on your bottom line can be transformative.
The Four Steps to Building a #1Reputation
In a competitive market, four specific categories drive and create revenue. Mastering these will help you build loyal ambassadors for your business, while maximising margins. If you’re only focused on delivering customer satisfaction, price will dominate your strategy. But if you focus on delivering customer appreciation, the experience becomes the currency—and it’s all about value.
1. Lead Generation
Your marketing strategies are designed to attract potential customers, ideally bringing in the right prospects. The most effective lead generation strategy is referrals from loyal customers who know what they want and prefer to deal with you. Referrals are a direct result of a powerful reputation..
2. Conversion Rate
The fastest way to boost revenue is to increase your conversion rate, both with new prospects and existing customers. Referrals from appreciative customers deliver the highest and most profitable conversion rates, as they bring in ideal prospects who are already predisposed to trust you.
3. Number of Transactions
Successful businesses focus on repeat customers because they are more profitable. Appreciative customers value the experience you provide over price, rewarding you with consistent business and maximum wallet share. If you lack loyalty, you’ll be forced to compete on price to get customers back, which erodes your margins. Satisfaction is driven by price; appreciation is driven by experience and value.
4. Average Sale Value
Customer satisfaction leads to basic purchases, while customer appreciation earns you the right to sell customers what they also want. Appreciative customers spend significantly more—often double—than merely satisfied ones. When you focus on delivering appreciation through service excellence, you’ll be rewarded with higher sale values.
The Difference Between Satisfaction and Appreciation
Customer satisfaction is the hallmark of a price-driven economy, which is a fragile and unforgiving marketplace. It requires constant discounting to stay competitive, which puts your business at risk. Customer appreciation, on the other hand, is the foundation of a value-driven economy. It’s a secure and predictable space where customers genuinely want you to succeed because they want you to be there for them in the future.
The myth of customer satisfaction is holding businesses back from achieving true loyalty and profitability. By shifting your focus from satisfaction to appreciation, you not only build stronger relationships but also secure your future revenue. A business that prioritises appreciation over satisfaction isn’t just surviving—it’s thriving with a #1Reputation that sets it apart from competitors.
Want Unshakeable Customer Loyalty? Focus on Appreciation
Have you ever seen a billboard that boasts a “100% satisfaction guarantee” or claims that a company’s customers are completely satisfied? At first glance, these statements seem reassuring. But what they really promise [...]
The Connection Between Great Customer Experience and Customer Loyalty
Ask any CEO, Senior Leadership Team, or Executive about the importance of customer experience (CX), and you’ll hear the same answer: “It’s critically important.” But if you then ask them to provide the [...]
The Real Value of Customer Loyalty: Building a #1Reputation
Have you ever realised the true value of something only after you’ve lost it? The same applies to customers. Think back to some of the customers you’ve lost and wish you had back, [...]
Customer Loyalty is the Only Thing You Can Count On
Remember the 1980s classic Back to the Future? It’s time to take a similar journey in business processes and rediscover the importance of service excellence and customer loyalty. In a world before websites, [...]
Stop Guessing and Start Knowing. How Well Are You Really Doing?
Many companies are focused on the latest customer experience (CX) strategies, but few have the data to back up their approach. As W. Edwards Deming said, “Without data, you’re just another person with [...]