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The Correlation Between Positive Emotion and Customer Loyalty

Performance metrics and touch-point checklists are rational when setting up customer service to meet the customers’ needs, but are they effective when trying to earn customer loyalty? In a recent article, Howard Lax, Ph.D. discusses the idea that it’s not always about metrics; it’s about how your customers feel about your company. Competitors will always be able to deliver comparable products and services, so companies need to do more for their customers in order to gain loyalty. 

Lax argues that ex-customers often give a company great performance metrics despite the fact that they left for a competitor. This is a result of a company meeting basic logical expectations without delivering a positive emotional experience. Scores can be a positive indicator, but the crucial component is whether a company can turn this positive performance into customer preference over competitors. In order for a customer to have a preference for your company over others, you have to connect with them on an emotional level and ensure they feel a bond with your brand. 

Lax uses an example of a study in which bank customers were surveyed about their opinions of their bank and their responses were matched with performance metrics from their experiences. The ultimate determination was that customers who had strong positive emotions towards their banks also had the best customer relationships, where the customers who described their thoughts of the banks as negative had lower performance scores and weaker customer relationship scores. In addition to Lax’s study, separate surveys taken by banks themselves showed similar results, with their own variations. 

The customer-brand relationship can be complicated, but ultimately, if your customers feel a positive emotional connection with your brand the relationship will be strong. If a customer has negative feelings connected to your brand, the customer relationship will suffer as a result. The more meaningful positive experiences you provide customers, the stronger your chances will be to gain customer loyalty.

This blog post is based on an article from CustomerThink. To read the original article, please click the link below: 

Battling for the Hearts and Minds of Customers – Howard Lax, Ph.D.

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