Customers are highly satisfied but willing to switch providers for incentives like lower prices. While most customers report satisfaction with their providers, 90% could be persuaded to switch and nearly 60% have switched in the past year. Customer satisfaction alone is a poor indicator of loyalty as satisfied customers will still switch for the right incentive. Price is the biggest factor for both switching and staying loyal, followed by quality of service. Companies must focus on consistently meeting and exceeding customer expectations through a quality customer experience to build true loyalty.

1. Seller Beware:
The Curse of the Disloyal Customer

2. In the face of growing fickleness
among customers of all types
of companies, widespread
misconceptions obscure the nature
of loyalty, how it’s created
and how to sustain it.
Seller Beware: The Curse of the Disloyal Customer

3. Seller Beware:
The Curse of the Disloyal Customer
Findings from a recent survey of
US and UK consumers
Accenture research indicates that high frequently are misguided. In the face surveyed said they could be persuaded
performance businesses outperform of growing fickleness among customers to switch or discontinue doing business
others in their industries by mastering of all types of companies, widespread with a company they currently patro-
specific capabilities—including those misconceptions obscure the nature of nize, depending on the incentive.
marketing skills that create strong, lasting loyalty, how it’s created and how to
Furthermore, nearly 60 percent said
bonds with customers. Our research also sustain it.
they had, in fact, decided to switch
indicates that the ability to deliver a
One of the most common mistakes or discontinue using at least one type
consistent—and consistently satisfying—
companies make is to equate customer of company included in the survey
customer experience plays a key role
satisfaction to customer loyalty. As a during the past 1 months. Those in
in creating customer loyalty.
recent Accenture survey of consumers in the United Kingdom are more likely
Organizations that manage to create the United States and United Kingdom (6 percent) than in the United States
loyal customers reap substantial illustrates, the two are not the same, (5 percent) to have switched or
benefits. Loyal customers may also and any company that fails to recognize discontinued service. As well, more
serve as company advocates, spreading this fact risks waking up one day to find individuals between the ages of 18
positive word about the company that its most satisfied customers switching and 54 and those with at least some
strengthen its brand and make it easier to the competition. college education have switched or
to convert prospects to customers. discontinued service in the past year.
Customer satisfaction: a poor
indicator of customer loyalty
In short, customer loyalty improves the As if those findings are not discouraging
bottom line and grows the top line. In enough for providers, nearly two-thirds—
fact, without strong customer loyalty, According to a recent Accenture study 64 percent—said they are likely or even
organic growth is extremely difficult (not of 10 product and service categories, very likely to switch or discontinue doing
to mention costly) to achieve. However, customers in the United States and business with companies they currently
loyalty often is misunderstood, and United Kingdom are a restless lot. A patronize. The companies most at risk
companies’ attempts to strengthen it full 90 percent of the ,000 consumers include Internet service providers and
Seller Beware: The Curse of the Disloyal Customer

4. Figure 1: Satisfaction versus loyalty
Consumers are Provider type % indicating company met
or exceeded expectations
highly satisfied for
the most part… US UK%
Retailers 90% 89%
Internet Service 82% 82%
Home telephone service 74% 77%
Hotels 78% 73%
Utilities 77% 69%
Banks 82% 61%
Wireless/cell phone service 61% 68%
Cable/satellite TV service 66% 59%
Airlines 54% 66%
Life insurance 57% 46%
…but very willing Reason to switch % indicating would
switch providers
to switch providers
if the incentive is right US UK All
Any reason 88% 86% 87%
Lower price 80% 77% 79%
More reliable/better service 58% 58% 58%
Better products 48% 46% 47%
Offers suited to my needs 48% 45% 46%
Access to a real person 34% 37% 36%
More product choices 31% 29% 27%
Rewards program 29% 29% 29%
More accurate billing 20% 24% 22%
4 Seller Beware: The Curse of the Disloyal Customer

5. wireless cell phone companies, followed providers had met or exceeded Most consumers (94 percent) in both
by retailers, hotels, airlines, and home their expectations. countries would be likely to take
telephone service providers. Once again, action against companies that failed
more of those in the United Kingdom However, any sense of accomplishment to meet their expectations: half of our
(68 percent) than in the United States these companies take in meeting or respondents said they would buy less
(61 percent) are likely to switch—and exceeding customers’ expectations or less frequently, or investigate the
more than one-fifth of United Kingdom may prove fleeting, as it also appears competition’s services, while 69 percent
respondents indicated they are likely from the survey that satisfied said they would share their negative
to switch in eight of the 10 categories. customers do not necessarily mean experience with friends, family and
People ages 18 to 54, those with a high loyal customers (Figure 1). colleagues, or switch to a competitor.
income level, and college graduates
For instance, while 8 percent of Encouragingly, 6 percent said they
also showed a higher predisposition for
respondents said their ISPs had either would communicate their dissatisfaction
switching in the next year.
met or exceeded their expectations, directly to the provider—at least giving
These findings may not come as a respondents were more likely to have the company an opportunity to address
surprise to some, given the increasing switched or discontinued ISP service the problem.
ease—due largely to the Internet— during the past year than any other
While companies that don’t satisfy
with which customers access provider category—and they were most
customers risk incurring customers’ wrath,
product information, compare price likely to switch ISPs in the next year.
the inverse is also true: Companies that
and move their business from one
Equally surprising was the reverse: inspire customer loyalty enjoy substantial
provider to another. What might be
Respondents were least likely to switch rewards (Figure ). About four in five
surprising, however, is that these
life insurance providers, even though (81 percent) survey respondents
,000 consumers also reported a
life insurance was the category selected said they will continue buying from
fairly high level of satisfaction with
least often (57 percent) as meeting or companies to whom they are loyal. This
many of their providers. When asked
exceeding expectations. is particularly true among those aged
to evaluate whether companies in a
40 and older, and those with at least a
range of industries met or exceeded
Many factors contribute to high or college degree. Approximately three in
their expectations as customers,
lower levels of industry churn—maturity, four (74 percent) respondents are likely
approximately three-quarters or more
level of competition and technology to recommend their favorite companies
of our survey respondents reported
substitution, to name a few—and to others. About half said they would
favorable experiences with businesses
these survey results do not reveal respond to “specials” or purchase more.
in six industry categories:
these underlying causes. They do, And nearly one-third indicated they
however, show that the causal
• Retailers received the most glowing would provide a personal endorsement
relationship between customer
reviews, being seen by 90 percent or share information with the company
satisfaction and customer loyalty is
of consumers as either meeting or about improved products or services.
indirect and unpredictable—if it exists
exceeding their expectations.
at all. Furthermore, this study plainly Clearly, there are strong motivations for
• Not far behind: Internet Service shows the disadvantages of tracking a company to continue striving for high
Providers (ISP), cited by 8 percent. satisfaction alone as a management customer satisfaction—whether it’s to
tool for predicting and managing get customers to buy more, spread good
• Home telephone service providers future churn. words about the company, or simply to
(76 percent), hotels (75 percent), avoid being blacklisted or disparaged by
utilities (7 percent), and banks (71 In short, any company that believes former customers.
percent) also were perceived by a that simply generating a strong level
Why customers stick—or don’t
large majority of consumers as of customer satisfaction will secure its
meeting or exceeding expectations. customer base should think again.
So what motivates customers to
Beware a customer scorned
• About six in 10 consumers were stay with one company while refusing
satisfied by their experiences with to do business with another? What
Our survey also showed why that would
three of the remaining four types determines consumers’ interactions with
be unwise. Adding insult to injury, some
of companies—wireless telephone and attitudes toward their providers?
respondents revealed themselves as not
providers, cable/satellite television
only fickle but potentially harmful to
providers, and airlines—while slightly
provider reputations (Figure ).
more than half said life insurance
Seller Beware: The Curse of the Disloyal Customer 5

6. Figure 2: Actions consumers take when expectations are not met
US UK Total
Share my negative experience with family and friends 68% 70% 69%
Switch to a competitor 68% 70% 69%
Communicate my dissatisfaction directly to company 63% 62% 63%
Research competition's products and services 52% 51% 51%
Buy less or not buy as frequently 52% 48% 50%
Limit the information I would share with the company 18% 21% 20%
Figure 3: Actions loyal consumers are likely to take
UK UK Total
Continue purchasing 82% 81% 81%
Recommend the company to others 74% 75% 74%
Respond to specials 50% 52% 51%
Provide direct positive feedback 42% 34% 38%
Provide personal endorsement 30% 32% 31%
Share information with company for improved products and services 18% 21% 20%
Contrary to conventional wisdom, products’ or services’ prices suit their in the decisions about which providers
consumers are not compelled to stick budget has a strong or very strong to patronize and which to avoid.
with a company based on such perks impact on their decision to continue
For instance, 60 percent of all
as loyalty cards and airline miles—at using a company with which they have
respondents said they would be
least according to our survey respondents. been doing business for at least a year.
willing to switch providers for more
And lack of knowledge about their Ominously, 79 percent of consumers
reliable or better service, while 1
options is certainly no longer a reason said they would switch providers for a
percent indicated that a company’s
for consumers to stay with providers better price assuming the products or
unwillingness to take sufficient actions
they no longer favor: The once-arduous services are comparable, and according
to meet their needs had a strong or
task of seeking out and evaluating to 0 percent of respondents, their
very strong impact on their decision to
alternative providers is of a disincentive principle reason for switching providers
stop patronizing a particular company.
to switch as the Internet has given in the past year was that they found
Furthermore, 4 percent noted that a
customers a wealth of information at the same type of offerings elsewhere
major factor in their decision to continue
their fingertips. (See Figures 4 and 5.) for a lower price.
using a specific company is that the
Price tops them all. According to Finally, when asked to indicate what organization corrected problems in a
our survey results, the most influential— companies that have failed to meet timely manner and in such a way that
and probably least surprising—factor their expectations could do to keep the issues did not reoccur.
in a customer’s decision is price. What their business, the largest percentage
Incidentally, most consumers believe
people pay for specific products and of respondents said the company
good customer service should be a core
services is far and away the most should offer products and services at
competency of the companies with
significant determinant of where lower rates than their competitors.
which they do business, and should
people shop and how loyal they are
Service is another factor. Consumers are not be considered an “add on.” In other
to those companies.
adamant that how they’re treated and words, companies should not expect
The largest percentage of respondents— the ease and speed with which their customers to bear the cost of improving
48 percent—said the fact that the issues are resolved play an important role service, as evidenced by the fact that
6 Seller Beware: The Curse of the Disloyal Customer

7. Figure 4: Reasons consumers decided to switch providers in past year
Percentage of respondents who indicated this
factor had a strong or very strong impact on
their decision to switch.
US UK Total
Found the same offerings for lower price 41% 44% 43%
Had a negative feeling about my experience 36% 31% 34%
Another company offered more choices 34% 33% 34%
Quality of offerings has deteriorated 34% 32% 33%
Company did not go above and beyond to meet my needs 32% 29% 31%
After giving feedback, offers did not improve 31% 28% 30%
Company reps were not trained well enough to understand my needs 27% 26% 27%
Weren't enough perks and awards for being loyal 18% 21% 20%
Company did not have enough staff dedicated to my needs 18% 17% 18%
I wanted to try something new 11% 8% 10%
Figure 5: Reasons consumers have stayed with providers
Percentage of respondents who indicated this
factor had a strong or very strong impact on
their decision to stay with providers.
US UK Total
Price of product or service suits my budget 47% 49% 48%
I trust the company's offerings 50% 41% 45%
Problems are fixed in a timely manner and do not recur 48% 37% 43%
I had a positive feeling about my experience 43% 34% 39%
I feel someone is always available to help 42% 32% 37%
Company reps are well trained/understand what I need 42% 30% 36%
Company goes above and beyond to meet my needs 39% 27% 33%
Company is always trying to improve offering based on my feedback 35% 27% 31%
I like their perks and awards for loyalty 23% 22% 22%
It is too much of a hassle to switch 19% 23% 21%
Seller Beware: The Curse of the Disloyal Customer 7

8. Most consumers believe good
customer service should be a core
competency of the companies
with which they do business.
The customer experience also plays
60 percent of survey respondents said ability to win customer loyalty, the
a major role in loyalty. Consumers
they would not be willing to pay more most important factor is mastering
for better service from any of the types the development and consistent
are unlikely to do business with a
of companies studied. delivery of a branded customer
company that, from their perspective,
experience. In fact, our research found
provides unpleasant interactions. In
A third element of loyalty is trust. that this ability may account for
our survey, 4 percent of respondents
Many consumers surveyed place a high one-third of a company’s ability to
said a negative feeling about their
degree of importance in a company’s achieve customer loyalty. In Accenture’s
whole experience with a company had
credibility and in knowing that a experience, companies that embody
a strong or very strong impact on their
company’s offerings will perform as the key skills required to deliver the
decision to terminate their relationship
promised. When asked why they brand promise, day in and day out,
with that organization. Conversely,
continue to purchase products or are more likely to create a favorable
9 percent indicated that a positive
services from a particular company, customer experience and, thus, build
feeling about the customer experience
45 percent of respondents said it’s stronger customer loyalty. These skills
had a strong or very strong impact
because they have grown to trust the are predominantly people-management
on their willingness to continue
company’s products or services. skills—including ensuring that all
patronizing a company.
functions deliver the same branded
But trust can be broken easily—such Tellingly, 6 percent of consumers experience, training all front-line
as when a company solicits feedback said dealing with a real person when people completely and effectively,
from consumers on how to improve its shopping or requesting service would and reinforcing the brand promise
products or services, but seemingly be an incentive to switch providers. consistently across campaigns.
fails to act on the input consumers give. The fact that survey participants cited
In fact, 0 percent of respondents A company’s actual offerings
the customer experience as a major
said such a lack of credibility has played go a long way toward fostering
factor in where they shop confirms the
a strong or very strong role in their or undermining customer loyalty.
findings of related Accenture research,
decision to stop using a provider in the In all the discussion about how important
which indicates that while multiple
past 1 months. price, service, trust and experience are
factors contribute to a company’s
8 Seller Beware: The Curse of the Disloyal Customer

9. Demographic differences
to loyalty, it’s easy to overlook the Interestingly, Americans are more
in loyalty
critical role that the actual offering likely to share information about
being purchased plays in keeping their unmet needs and requirements
As might be expected, impressions
customers coming back for more. As with the companies they are loyal to,
of product and service providers
our survey respondents told us, the while those in the United Kingdom
vary—sometimes dramatically—by such
state of a company’s product or service are more willing to provide information
factors as age, income level, gender
is a significant determinant of where to such companies on their hobbies
and place of residence.
they shop. Indeed, just under half of and interests.
consumers surveyed said they would
Country of residence Overall, a larger While there is little interest among
be willing to switch to a competitor if
percentage of Britons than Americans more than 60 percent of respondents
the new company’s products or services
have switched from any provider in the overall in paying more for better
were “better” or more closely suited
past 1 months. Respondents in the service, United Kingdom residents are
to their needs.
United Kingdom are less enchanted than more likely to pay extra for better
those in the United States by banks, life
Given that, it makes sense that one-third service from hotels and airlines. Those
insurance companies and utilities—being
of respondents said deteriorating product in the United States are more willing
less likely to believe such companies
quality strongly or very strongly influenced to accept additional fees for better
meet or exceed their expectations, and
their decision to stop using a particular service from wireless telephone
less likely to think such companies are
provider—or that approximately the same service providers.
consistent in what they promise in
percentage indicated a company’s
their advertising and what they actually Americans are more willing to see
constant efforts to improve products
deliver. Moreover, a greater percentage a number of factors as having a
based on customer feedback played a
of UK residents reported being likely or strong or very strong impact on their
significant role in their continuing to
very likely to switch or discontinue doing decision to continue to patronize
patronize the organization.
business with these companies. particular providers, especially trust
in the provider’s products or services;
Seller Beware: The Curse of the Disloyal Customer 9

10. Women and men generated
a high degree of consistency
in their responses to most
questions in the survey, with
a few notable exceptions.
10 Seller Beware: The Curse of the Disloyal Customer

11. having problems corrected in a timely Surprisingly, high-income respondents that foster or erode loyalty—a gap
manner; having a positive feeling about are just as price-sensitive as low-income more pronounced in some industries
the overall experience of dealing with individuals. Eighty-four percent of the than in others.
the provider; perceiving the company’s former and 78 percent of the latter
Overall, older and younger respondents
representatives to be well-trained and indicated they would switch providers
expressed similar views on the types
understanding customers’ needs; and for lower prices. However, high-income
of companies that meet or exceed
the company’s continuing to improve respondent are more likely to switch for
their expectations, with two notable
products and services based on the sake of superior service or products.
exceptions: older individuals are
customer feedback.
High-income individuals are more likely more likely to say home telephone
A much larger percentage of Britons to share negative experiences about a service providers, and less likely to
than Americans believe the Internet company with their friends and family, indicate airlines, meet or exceed
has made it easier to switch providers switch to a competitor if a company is their expectations.
both by providing quick access to not meeting their needs, and to have
When companies don’t meet their
information on competitive products actually switched providers in the past
expectations, older consumers are
and services, as well as enabling year. Furthermore, wealthy respondents
less likely to share their negative
customers to sign up for services and are more likely than low-income
experiences with friends and family or
move their accounts online. participants to switch providers in the
switch to competitors, and more likely
next year—especially wireless telephone
Gender Women and men generated to communicate their dissatisfaction
service providers, retailers, hotels,
a high degree of consistency in their directly to the company. Interestingly,
airlines and life insurance providers.
responses to most questions in the older people tend to be less price-
survey, with a few notable exceptions. The low-income group is more likely to and service-sensitive than younger
provide positive feedback to and share individuals, and few older respondents
Women are more likely to switch providers additional information with companies reported a desire for greater product
because of a lower price at a competitor, to which they feel especially loyal. On choice or better rewards program as
negative feelings about the experience the other hand, a larger percentage of factors driving them to switch providers.
with the existing company, and greater high-income individuals said they would Not surprisingly, a much larger percentage
choice and product quality offered respond to such a company’s customer of younger consumers than older ones
by competitors. satisfaction surveys. cited the Internet as a potent tool
that makes it easier for them to switch
Similarly, women are more likely to The factors that influence the decision providers when they are unhappy.
continue using a company because its to stick with a provider or to switch
prices fit their budgets, they trust the vary only slightly between the high- and In general, younger people seem to
company’s products and services, and low-income groups. However, a greater expect more from companies—and
they have positive feelings about the percentage of low-income respondents punish providers when they don’t
overall experience. Women also were believe home telephone service providers, deliver. Younger consumers are more
much more likely than men to stay with banks, and utilities exhibit consistency likely than older ones to have switched
a provider because they valued its perks between their ads and what they providers in the past year—especially
and rewards, and because they believed actually deliver. A smaller percentage banks and wireless telephone service
switching was too big a hassle. of this group sees alignment between providers—and have done so primarily
promises made and kept by hotels, because the companies failed to
Income level When viewing the data airlines and life insurance companies. improve their offerings despite getting
by the income level of participants, feedback from customers, and because
we found a number of disparities in Age Finally, age definitely plays a role the companies did not go “above and
responses between high-income and in consumers’ perspectives on product beyond” to meet customers’ needs.
low-income individuals. and service providers. In general, Additionally, younger survey participants
younger respondents tend to be more are more likely than older respondents to
High-income respondents are more restless—ready to switch providers expect to switch providers in the next 1
likely than low-income participants quickly if not satisfied—whereas older months (70 percent versus 56 percent).
to believe companies are meeting or participants appear more willing to
exceeding their expectations—especially communicate with companies and When they are happy with companies,
hotels, utilities, mobile phone service give them an opportunity to correct young people appear to be the better
providers, airlines and life insurance mistakes. Furthermore, a noticeable customer. They are more likely than
companies. generational gap exists in the factors older individuals to say they buy more
Seller Beware: The Curse of the Disloyal Customer 11

12. We believe the key is to develop
insight beyond current customer
behavior to create a branded
customer experience that
taps into unspoken needs and
hard-to-measure attitudes.
products and services when they evolving consumer demographics— churn appears to be inherent to doing
feel especially loyal to a company. have made customer retention more business; in this case, companies will
Furthermore, younger people are more challenging than usual. Our survey have to deal with the loss and learn
willing to share information of all clearly demonstrates the impacts these how to be prosperous in spite of it.
sorts with companies to which they changes have made on consumers and
When companies think about
are favorably inclined, while older illuminates the factors that customers
customer loyalty, they often frame
people will limit their data-sharing to say will drive them to be more loyal.
the issue as how do we keep customers
responding to customer satisfaction
What do companies have to do to from going to someone else? By
surveys.
meet customers’ needs? By researching approaching the challenge as a
Interestingly, while younger people many successful companies—as well negative—something they must keep
often are portrayed as skeptical as working with hundreds of other from happening—companies put the
and cynical, our survey found little organizations—Accenture has gained focus on retention rather than loyalty,
substantive difference between the a unique perspective on what it takes and management can easily come to
perceptions young and old have of to increase customer loyalty. We view customer care as an annoying
companies’ advertising. About equal believe the key is to develop insight distraction from its primary agenda.
percentages of both groups felt there beyond current customer behavior to Companies should recast the issue
is consistency between the promises create a branded customer experience in a positive context—how do we get
made in companies’ ads and what that taps into unspoken needs and customers to want us more than the
they actually deliver. hard-to-measure attitudes. alternatives?—to reflect the central role
that loyalty plays in achieving organic
Analysis and recommendations The concept of a lifetime customer is growth and profitability.
quickly becoming a quaint remnant
There’s no question that various of the past, and companies should As we learned from our survey, multiple
changes in the business context— recognize that virtually any customer factors influence a customer’s decision
including economic ups and downs, may switch to the competition at any to stick with a company or leave. Price
increased competition and choice, and time. For some sectors, a high level of has the strongest influence, regardless
1 Seller Beware: The Curse of the Disloyal Customer

13. Figure 6: Multiple types of loyalty
Category
Brand
Involvement
Commitment
High
Low
Habitual
Category
Defection
Defection
Defection Inertia Bias Conditional
Emotional Bias
Loyalty
Risk High
Risk High High
Risk High High
High
Habitual
Inert
Emotional Low
Low Low
Loyalty
Loyalty
Grow Convert
Manage
Manage
Habitual Maintain
Grow
cost base
cost base Satisfaction Satisfaction
Brand Satisfaction
Loyalty
Brand
Catagory
Commitment Manage Save De-prioritise Counter
Manage
Involvement Save
High for competition
cost base
Low
profitability Low Low
Low
Conditional Low Value High
Low Value High
Low Value High
Category
• Current
• Current
• Current
Loyalty
• Potential
• Potential
• Potential
Conditional
Fleeting
Emotional
Loyalty
Loyalty
Conditional
Brand
Loyalty
of the type of provider or the customer’s effectiveness of employees in handing nature of a customer’s loyalty—
country of residence, age, gender or their issues and understanding their combined with the expressed level
income. Trust is also an important particular needs, and how far the company of satisfaction—paints a much clearer
factor in why consumers select and will go toward meeting these needs. picture of which customers are at
remain with specific providers. Forty- risk and why. By aligning this picture
As key influences of loyalty, all of these
five percent of our respondents cited with an equally clear view of current
factors—price, trust, service quality and
faith in a provider’s products or services and probable profitability, companies
overall experience—must be considered
as part of their decision to stay with can map a solid strategy for customer
when mapping out a plan for finding
the company. treatment.
and keeping customers. But they should
Service quality and the overall customer be considered in the context of specific Accenture believes the prevailing
experience are strong influencers of customer relationships and clear goals definition of customer loyalty and the
loyalty as well. Our survey found, for for these relationships: which relationships strategies for attaining it have been
example, that nearly 60 percent of are profitable, for example, which ones oversimplified. Moreover, we believe
consumers would switch providers could be more profitable, and which that traditional loyalty management
to get better or more reliable service; ones are at risk. practices, which often focus on
4 percent have switched because of developing a sense of evangelical or
Here, understanding what customers
a negative experience; and 9 percent emotional loyalty in customers—may
think about a company, its competitors
continue patronizing a provider due not succeed in the long term.
or their own desires is invaluable.
to a positive feeling about the
However, companies must avoid To be successful today, companies need
overall experience.
the trap of equating how satisfied a to recognise, grow and manage more
Specific factors in these two areas customer reports to be with how loyal than one kind of customer loyalty with
that may have a strong impact on the customer is. By itself, expressed more than one kind of strategy.
customers include whether or not their satisfaction is a poor indicator of
We believe the different kinds of loyalty
issues are addressed in a timely manner, whether or not the customer is a
can be understood by analyzing their
whether or not these issues reoccur, the candidate for defection, or when. The
Seller Beware: The Curse of the Disloyal Customer 1

14. Figure 7: Respondent Income Level
US UK Total
High 18% 24% 21%
Medium 27% 28% 27%
Low 43% 29% 36%
Figure 8: Respondent Ages
US UK Total
18–39 28% 33% 30%
40–54 36% 40% 38%
55 or older 33% 22% 28%
Figure 9: Respondent Education
US UK Total
High school/secondary school or less 21% 23% 22%
Some college/tech school 38% 32% 35%
College/university or higher 41% 43% 42%
distinct dimensions, including brand they are also less aware of the of loyalty is exhibited by which
characteristics, market category and competition. customers—and craft and execute
a customer’s individual loyalty drivers effective programs to ensure that
• Emotionally-biased loyalty:
and decision-making. A well-crafted the “best” customers become and
Customers in this group are more
strategy for building and sustaining remain emotionally loyal—will be a key
likely to continue using the company
loyalty takes all of this into account, determinant of market leadership and,
or brand, even when personal
and defines how the most profitable ultimately, high performance.
circumstances—such as income or
and potentially profitable relationships
Method Accenture commissioned
location—change. They are less likely
align with these loyalty “segments”.
to change behavior in response to the research firm ICR to survey
Doing so allows a company to prioritize
competitor offers, and generally hold customers in the United States and
focus, and marshal its resources.
strong positive beliefs and attitudes the United Kingdom about their loyalty
• Conditionally-biased loyalty: about the company and its brand. toward specific industries and service
Customers in this category are the categories, including the factors that
It must be noted that gaining these
most susceptible to competitors. They persuade them to switch or stay with
insights into customers is itself a complex
know what the competition offers and their providers. ICR surveyed 010
undertaking. A large percentage of
how it compares with their current consumers in the United States and
our survey participants indicated
provider’s offering. They are also less United Kingdom via the Internet. The
an unwillingness to share personal
likely to be influenced by their current sample set was evenly distributed
information with their providers—why
provider’s brand promises. between the two countries and evenly
they buy what they do, what needs divided between male and female
• Inertia-biased loyalty: Customers in are unsatisfied, how much they would participants. More specific demographic
this category are essentially passive. pay for new products and services and information on survey participants can
They have limited knowledge of the so forth—even when they are loyal to be seen in Figures 7, 8, and 9.
company’s brand, and are less likely these providers. In this environment,
to recommend it to others. However, the ability to understand which type
14 Seller Beware: The Curse of the Disloyal Customer

15. Seller Beware: The Curse of the Disloyal Customer 15

16. Would you like to learn more?
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