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Customer Loyalty Questions

 

Value Profit Chain book coverWhen asked to measure loyalty, what questions should you ask? 

For instance, in The Value Profit Chain, Earl Sasser Jr. and his co-authors provide this list:

  • How likely are you to repurchase?
  • How likely are you to tell someone else about your experience?
  • How many times have you purchased (all products or services of this type) in the past 6 months (or some other period of time reflecting purchase frequency for product or service category)?
  • How many times have you purchased (this product or service) from (our company) in the past 6 months?
  • How many others have you told about your experience (with this product or service) in the past 6 months?
  • How many of those that you have told in the past 6 months have, to your knowledge, also purchased (the product or service)?
  • How many times have you offered constructive criticism or suggestions for product or service improvements over the past 6 months?
To this list can be added:
  • How likely are you to repurchase if the price increases 10%?
  • How likely are you to repurchase if a like competitor has a price that is 10% lower?
  • How vital is the competitive advantage this product provides?
  • What percentage of your spending on this product category is spent with us?
  • When shopping for this product category, how often do you purchase from us instead of from other brands?
  • How likely are you to continue purchasing the same products/services from us?
  • How likely are you to purchase different products/services from us?
  • How likely are you to increase the frequency of purchasing from us?
  • How likely are you to switch to a different provider?
  • How reluctant are you to switch your business to a competitor?

You should measure the questions that you can link to business outcomes. This takes time and experimentation to find out what works best for your organization. Settling on one question prematurely because it works for others in a few industries is the wrong approach. For you, one set of questions might work better for one product line than another, which might need a completely different set of loyalty questions.

Here are some sets of loyalty questions you should test:

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Comments

Great list of questions to ask. I think this will really help give a company a better understanding of their situation. Thanks for posting.
Posted @ Thursday, June 03, 2010 1:25 PM by Customer Retention
Very important questions.It was very helpful to build up my research questionnaire.
Posted @ Friday, August 06, 2010 1:19 AM by Prasadika
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