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Talking Point: The Disney Institute Blog

A Common Mistake: Relying on Price Alone to Drive Customer Loyalty

December 01, 2014 by Bruce Jones, Senior Programming Director, Disney Institute

Recently, we shared The Secret to Delighting (And Keeping) Your Customers Well Beyond the Holidays. This post summarized that a key to building long-term, deep attachment with your customers is to be deliberate and consistent about the tangible and intangible benefits you deliver over time.

Why is this critical? At Disney Institute, we know that sustaining customer loyalty over time is not just about an organization continuously offering the lowest price for a product or service. It goes well beyond that. To create and sustain true customer loyalty, you must make a meaningful and credible brand promise to your customers, and then deliver on that promise over and over again.

According to research featured in the Social Consumer Study, “quality and price (75% vs. 72%) rate as two important factors when customers choose to buy from a company.” But, when it comes to determining true customer loyalty (long-term behavior), the research highlighted that a positive customer experience is the single most important factor that impacts behavior.”  

In other words, when it comes to sustaining long-term relationships with customers, both quality and service (two key ingredients that make up the “customer experience”) are even more important – and impactful – than relying on price alone.

One company that embraced this approach to sustaining customer loyalty is Best Chevrolet, a large auto dealership in Hingham, Massachusetts. After engaging Disney Institute and adapting business insights and time-tested examples from Walt Disney Parks and Resorts, Best Chevrolet has seen a significant rise in customer-satisfaction ratings of more than 10 percentage points above the industry average. The dealership also racked up an impressive 69 percent customer-retention rate (the number of customers who continue to return for services five years after purchase), compared with an industry average of 40 percent. 

To learn more about how Best Chevrolet improved its customer loyalty, read the story or watch the video.

Bottom line: focus on sustaining long-term customer loyalty by delivering a quality product and an excellent service experience, over and over again. If done well, over time, price can become less relevant to your customers – and that can translate to a true competitive advantage, directly impacting your company’s results in the long run.

What stands in the way of you creating a customer experience that consistently delivers your company’s brand promise?

We would love to hear from you!
Post your response below, or respond to us on Facebook or Twitter using hashtag #DThinkBlog.


ABOUT DISNEY INSTITUTE…
Disney Institute uses business insights and time-tested examples from Disney parks and resorts worldwide to provide relevant illustrations and engaging stories that help you deliver the type of long-term results your organization is capable of delivering. Ultimately, Disney Institute can help you operationalize and sustain business results through leadership, culture, service and more. Explore our solutions for a team or an organizational initiative by visiting Our Approach page. To learn more about options available for an individual, please explore our Scheduled Courses.

 

 


 


Disney Institute is ready to help you apply strategic rigor to your customer experience efforts - call us at 321.939.4600 or complete our Contact Form




Posted in Quality Service | Tagged Service, Quality Service, Customer Service, Customer Experience, Best Chevrolet, Bruce Jones


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