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Customersatisfactionisgreaterthanloyalty Don’tcutbackonyourmarketingspend
Don’t confuse the two concepts, shareholdersdearly.Thetrickis The short-term approach is needtoput
says Xavier Quenaudon, inknowingwhichmeansof pure folly, says David Thorp, themselvesin
vice-president,
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CFI Group. satisfying–andthusbenefiting– director of research and theircustomers’
Asprovidersof customerswill alsobenefitthe professional development at shoesandthink
strategiccustomer company’sbottomline. The Chartered Institute of creativelyabout
satisfaction Withreferencetoloyalty,
measurement somebelieveitismore
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Marketing. findingsolutionsfortheir
Cuttingmarketingspendcan customersintheirtimeofneed.
we’vecomeacross importantthancustomer causedamagetobrandand Digitalmarketing,with
alotoforganisationswhich satisfaction.Thismisperception profitabilityinthelongterm, itsgreatermeasurability,
believethatwhattheydon’t isgainingtractioninthe andourlatestWhitePaper accountabilityandabilityto
know,canhurttheirbottomline. businessworld,anditisa showsthatitisinsteadthose engagecustomers,issetto
Howverywrong. dangerousphilosophy. organisationsthatincrease playanincreasingly
Executivesatmost Loyaltydoesmatter,butitis theirmarketingspend,refine importantroleformarketersin
companiesbelievethey abackward-lookingmeasure. theircampaignsandremain therecession.
understandthemeaningand Sellersofgoodsandservices committedtotheirmarketing Marketershaveastrong
importanceofcustomer needtobeabletonotonly activitieswhodowellin caseagainstpaniccutsandfor
satisfaction:‘Satisfied’ predictbutalsoinfluence recessionsandemergethe investingintheverypeople
customersarenotonlymore loyalty.Becausecustomer strongerwhenrecoverycomes. whocanpreventthegap
likelytospendmoremoneyon satisfactionisaprovenpredictor Withcutscomeinvisibility betweenanorganisationandits
theirproductsandservices offuturebuyingbehaviours, andthedangerofbeing competitorsincreasing.
–andprobablymorefrequently comprehensiveprogrammes forgottenbyyourcustomers; Itwillbeprofessional
–butthey’realsomorelikelyto allowcompaniestofocusonthe whilediscounts,thoughinitially marketers,withcreativity,
recommendtheircompanyto futureratherthanthepast,and tempting,soonbecome imaginationand,ofcourse,the
others,producingeven taketheactionsthatwillbenefit expected,erodingprofitsand rightbudget,whograspthe
greaterprofits. theorganisationthemost. thevalueofyourbrand. recessionasanopportunity,
Butit’snotquitethatsimple. Therealityofthesituationis Adaptabilityiskeyfor andleadrec
Infact,someformsof thatyoucanbuycustomer marketers,whomorethanever
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overyintheir
businesses.
‘satisfaction’canactuallycause loyalty,butyoucan’tbuy
harmtothebottomlineand customersatisfaction.
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Goodthingscomeinsmallpackages...
costboththecompanyandits
Despite the gloom there’s a resources,wherethose
glimmer of hope for smaller responsiblefor‘directing’are
‘Plugtheleakstofillyourbuckets’
enterprises, says Terry Childs, those‘doing’,too.Furthermore,
Mark Simpson, Inamarketwhichisstill
creative direc
MD, Maxymiser relativelyyoung,content a99
tor, Silver Chair. wherebudgetsareunderscrutiny,
Small,often smalleragenciescanoften
says pumping optimisationisthenextbig
localiseddigital meetthemoststringent
funds into online opportunityasbusinessesseek
andmarketing best-value-performancepolicies,
customer tobolstertheirfallingrevenues
agencies–where achievingtop-levelcreativity
acquisition is not a prudent andsecuretangiblereturnsfor
aninherentsense fromteamswhichcanrespond
s
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trategy for business growth. theironlinemarketingbudgets.
of‘immediacy’is withspeedandflexibility,
Companiesneedtowakeup Thebiggestgainswillbelongto
complementedbyinnovation embracingthenewmedia
totheappallingleakagethatis thosewhomaketheshiftfirst.
andstrategicknowledge–are landscape.Itisnolonger
takingplaceasvisitorsmove Thesearefrugaltimes
buckingthetrendtoward enoughtodeliverinnovatively
throughtheirwebpages. –nowisnotimetoleavethe
businessdecline.Infact,in andcreatively–wehaveto
Intheonlineretailsector, taprunningwhenthereare
somecases,suchcompanies understandthesoulofthe
conversionrates(therateat leaksinthebottomofyour
haveneverbeenbusieror businessandbebothproactive
whichvisitorstoasiteprogress bucket.2009willbeayear
stronger.Inparticular,small andresponsive–fast.There’s
toapurchase)averageoutat whenonlinemarketersare
agencies,whichhave truthinthesaying‘goodthings
justthreetofivepercent;in forcedtoreassesstheirbudget
strategically,orhistorically comeinsmallpackages.
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thetravelindustryit’slower allocations,sothereisno
investedinanowner-driver
still.Thismeans,despiteall bettertimetoembarkon
ethos,aregrowingagainst
SendyourDMopinions:
yourbesteffortstogetthem awellthought-out
larger,lesspersonalbusinesses.
there,97percentofvisitorsto conversionstrategy.
Thisisdirectlyattributedto
No more than 150 words
yourwebsitearestillnotdoing Takecareoftheleaks,and
betterandmorefrequent
please, to:
whatyouwantthemtodo. yoursaleswillgoup.
a100
accesstoexpertstrategic
sally@dmi-news.com
12 May 2009
www.dmi-news.com
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