New York, NY – Customer satisfaction is often touted as the most important issue among business leaders. If you want to win your customer’s business, it goes without saying that they have to be highly satisfied. But in an article recently published in MIT Sloan Management Review, a duo of thought leaders from Ipsos Loyalty argue that the reality is far more complex.
In “The High Price of Customer Satisfaction,” Timothy Keiningham, Global Chief Strategy Officer and Executive Vice President for Ipsos Loyalty, and Alexander Buoye, Head of Loyalty Analytics and Senior Vice President at Ipsos Loyalty, present an in-depth analysis of the relationship between customer satisfaction and profitability. Along with Keiningham and Buoye, the article is co-authored with Sunil Gupta from Harvard Business School and Lerzan Aksoy from Fordham University. The authors draw on extensive research to answer the age-old question—is customer satisfaction worth the cost?
“The promise has traditionally been that satisfaction improves market performance. But we are starting to see that this isn’t necessarily the case,” says Keiningham. “While increasing satisfaction levels can be a useful component of a firm’s strategy, it often isn’t compatible with market share growth, or even good business. In fact, there are a myriad of other factors to consider for creating a profitable loyalty strategy.”
The authors hone in on three issues that have a negative impact on translating customer satisfaction into positive business outcomes, while offering strategies that managers can easily implement to ensure that these two goals remain in alignment.
“This article translates the extensive research and development on customer satisfaction and loyalty into clear and simple perspectives that enable business leaders to make more informed decisions,” adds Henri Wallard, Deputy Chief Executive Officer of Ipsos. “I want to congratulate Timothy and Alexander on the excellent strides they are making in this area.”
The groundbreaking insights presented in their MIT Sloan Management Review article are cornerstones of Keiningham’s and Buoye’s next book (with Lerzan Aksoy and Luke Williams), entitled The Wallet Allocation Rule: Winning the Battle for Share, which is scheduled for release in the fourth quarter of 2014.
MIT Sloan Management Review leads the discourse among academic researchers, business executives and other influential thought leaders about advances in management practice that are transforming how people lead and innovate. MIT SMR disseminates new management research and innovative ideas so that thoughtful executives can capitalize on the opportunities generated by rapid organizational, technological and societal change.
The full article can be purchased in the spring issue of MIT SMR: http://sloanreview.mit.edu/article/the-high-price-of-customer-satisfaction/
To register for an upcoming webinar on this topic, please click here: http://www.ipsos-na.com/knowledge-ideas/events/high-price-of-customer-satisfaction.aspx
For more information on this news release please contact:
Director, Marketing Services
Ipsos in North America
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.
With offices in 86 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.
Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.
Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$) in 2013.
Visit www.ipsos.com to learn more
about Ipsos’ offerings and capabilities.