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Study: Most Contact Centers Fail to Implement Customer Loyalty Programs

April 18, 2012

If you're a contact center organization, you understand the importance of customer loyalty program, right? Not necessarily, according to new research published today by Satmetrix, the Net Promoter software company. The report finds that organizations of all sizes may be missing out on the business benefits of a best practice approach to customer loyalty.


Solutions are out there though. “Our Net Promoter in the Cloud software applications…enable businesses to focus on building loyalty with existing customers while encouraging loyal customers to help attract new ones,” said Steve Baxter, general manager of global mid-market solutions at Satmetrix.

A majority of organizations skip this important step. 64 percent of small and midsize companies (SMBs) (companies with revenues of less than $150 million per year) and 70 percent of larger businesses (with revenues of more than $150 million per year) don’t know, can’t measure or cannot prove the return on investment (ROI) from customer experience management (CEM) initiatives.

In addition, while larger businesses see current customers as their main priority (34 percent), SMBs would rather focus on acquiring new customers (48 percent). Almost one in five (18 percent) SMBs have no means of measuring loyalty in place, despite the importance of customer loyalty scores to a call center's operations.

The research, based on more than 1,000 responses from companies of all sizes around the world, showed that 16 percent of SMBs have no CEM initiatives in place compared to just five percent of large companies. Of those that do, 73 percent of SMBs and 58 percent of large businesses have built the CEM systems in-house.

Of the companies failing to implement customer loyalty best practices, a number of challenges to creating such a program were identified.

Twenty four percent find it hard to close the loop with customers. This means customers that give feedback may feel ignored, which creates diminished satisfaction since the respondent effort and time was not respected (21 percent of large businesses).

Fourteen percent struggle to get alignment about the right metrics to use (11 percent of large businesses), which may be one of the reasons why proving the ROI of CEM is so hard, according to Satmetrix.

Fourteen percent of companies said they find it hard to get employees engaged in CEM initiatives (12 percent of large businesses).

“This research shows that while businesses understand the strategic importance of delivering an excellent customer experience, they are struggling to make this a reality through best practice CEM initiatives,” Baxter said in a press release. “It's impossible to get true commitment to creating a 'customer first' culture if you can't measure the ROI or agree on a simple metric for ROI, struggle to get employees engaged and fail to close the loop with customers.”

For more information about the study and solutions by Satmextrix, visit www.satmetrix.com.




Edited by Braden Becker

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