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Articles
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QICID: 18836
Title: The Loyalty Elephant
Copyright: 2003, ASQ
Author: Hoisington, Steve; Naumann, Earl
Organization: Johnson Controls, Inc., Milwaukee, WI; Naumann & Associates, McCall, ID
Subject: Business plans,Case study,Quality assurance (QA),Customer loyalty,Customer satisfaction (CS),Customer focus;
Series: Quality Progress, Vol. 36, No. 2, February 2003, pp. 33-41
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Abstract: [This abstract is based on the authors' abstract.]
Like the blind men describing the elephant, articles about differences between customer satisfaction, customer value, and customer loyalty are missing the big picture. All these concepts are important and are part of the larger concept of "being customer focused." A four-phase customer loyalty model explains the major relationships leading to customer loyalty, beginning with the customers' perceptions of an organization's performance. These contribute to the formation of global perceptions about the organization, which lead to loyalty behavior and ultimately to financial outcomes. While few organizations have tested all the linkages, focusing instead on certain relationships of interest, empirical data support the validity of the model's relationships. Sidebar articles reveal the outcomes of customer research methodologies used by AT&T, IBM-Rochester, and Johnson Controls.
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