Is Customer Loyalty Dead?

Fred Reicheld, the creator of the Net Promoter system, discusses the impact of increased automation and technology on customer loyalty.  Far from making it irrelevant, he says technology places a premium on the less routine face to face interactions customers have with you.

Transactions that are more complex, he says, create a “moment of truth” opportunity to either delight or greatly dissappoint your customer.  Since routine interactions with a human being are less frequent, there is less opportunity to offset a failed “moment of truth” so getting those moments right is even more important than it ever has been.

For investment companies such as Vanguard, a “moment of truth” is often a life event such as a birth, marriage or passing away of a loved one.  Helping customers through these significant and emotional moments successfully can create a great deal of loyalty.

Read his Linked In article here.