Create Demand, Expectation, & Loyalty
1. Tap into Demand
Building customer demand and loyalty starts with the clarification of the organizational purpose, or ‘WHY’.
Author Simon Sinek wrote a book titled “Start with Why: How Great Leaders Inspire Everyone to Take Action” (2009). In the book, Mr. Sinek shares how building customer loyalty involves engaging customers that connect with an organization’s WHY and building product or service preference as customers find that the organization’s purpose is quite valuable to them.
In short, the organizational purpose connects the organization with what customers want.
The result is that over time customers become raving fans of the organization. Apple and Starbucks are good examples of this customer linkage to the WHY statement of purpose. Both have a very loyal customer base.
Exceed Customer Expectations
Use of the Kano model, developed in the 1980s by Professor Noriaki Kano, professor emeritus of Quality Management at the Tokyo University of Science, can help and organization better understand its market, and how to best differentiate from competitors. The Kano model is based upon the following premises:
Customers’ satisfaction with a product or service depends on the level of Functionality that is provided (how much or how well they’re implemented);
Features can be classified into four categories: 1) Indifferent, 2) Must-be, 3) Performance, and 4) Attractive
Using a validating questionnaire will help determine how customers feel about features.
The Kano model is depicted here:
Outcomes that flow from the application of the Kano model include:
Improved market knowledge and customer awareness
Better understanding of internal and external stakeholder perspectives and buying criteria
Identification or unmet needs (delighters)
Opportunity to expand upon desired market adoption results
Improved financial performance
Customer loyalty starts from a connection with an organization’s WHY and builds as the organization meets and then exceeds expectations.
The question is how does an organization create the kind of internal organizational alignment and performance necessary to drive sustainable customer loyalty? It starts with the consistent use of the Effective Engagement Flywheel.