If Customer Loyalty is a Myth, What Should You Focus On Instead?

PDF (21p): http://www.oracle.com/us/dm/oraclese...nt-2398365.pdf


Oracle’s new report Dogs are Loyal Customers Aren’t is written in collaboration with consumer behaviour consultant, Philip Graves. The report looks at customer behaviour through the prism of modern psychological theory and suggests that customers are not actually loyal to brands in the true sense of the word.

The report contends that customer service teams should start to think in terms of customer “stickiness” (which is descriptive of the behaviour) rather than “loyalty” (which is a projection of what’s driving behaviour). In the report, Graves sets out four ways in which customer service teams can use customer behaviour to drive stickiness:

  1. Build strong and positive associations through unique approaches to customer service
  2. Spend time making life easier for the customer rather than for the brand, including the use of personalization tools, virtual assistants and cloud-based collaboration services
  3. Focus on ensuring customers feel no regret from their dealings with the brand: if something goes wrong, customers must be confident that the solution will be swift and appropriate
  4. Create a service “anchor”; a positive mental reference point from which the customer starts when considering their next purchase

According to the report, the key to success in these areas lies in the now abundant opportunity to capture behavioural data and to conduct live tests of different approaches to prove what the impact of any change will be.

David Lopes, Customer Experience Strategist at Oracle, commented: “This report provides an interesting take on customer service just as the discipline is becoming more important than ever. Importantly, our understanding of what drives customer behaviour is growing at the same time as a raft of new technologies – from cloud computing and mobility to big data analytics – are allowing us to adapt to this new understanding like never before.”