Ipsos Loyalty

Customer satisfaction, loyalty and profitability

Customers who always buy the same brand is a declining phenomena. Instead, polygamy or loyalty to more than one brand is becoming the natural way to act for the consumers of today.

With the insight that not all customers are profitable for a company, the key to successful customer strategies is to understand which customers the company should strive to make more loyal. With this as a base Ipsos’ loyalty model takes the discussion about customer satisfaction to where it belongs – which effect does it have on the profitability of the company?

Our methods often build on combining research results (CSM) with information from the company’s database (CRM). We help our customers choose customer retention strategies by answering questions such as:

• Which customers are both profitable and loyal? How big is this segment?
• Which customers should we try to make more loyal? How big share of these customers is it possible to make loyal, and what are the parameters driving loyalty for this segment?
• Which customers are unprofitable? Should we keep them? Do we need to try to make them loyal, or is it better to try reducing the cost for servicing them in order to increase their contribution to the profitability of the company?

The background of our loyalty model is described in more detail in the book Loyalty Myths: Hyped Strategies That Will Put You Out of Business – and Proven Tactics That Really Work.

Here we also describe why many of the traditional loyalty myths actually are not true. We have also listed a number of new truths about what customer loyalty actually means, and what strategies these enable to create increased profitability.