Differentiate between customer satisfaction and customer loyalty.

Question

What will be an ideal response?

Answer 1

Answers will vary. Customer satisfaction is achieved when customers perceive that a good or service delivers value above and beyond their expectations. You know you've satisfied your customers when you deliver perceived value above and beyond their expectations. But achieving customer satisfaction can be tricky. Less savvy marketers frequently fall into one of two traps:The first trap is overpromising. Even if you deliver more value than anyone else, your customers will be disappointed if your product falls short of overly high expectations.The second trap is underpromising. If you do not set expectations high enough, too few customers will be willing to try your product. The result will be a tiny base of highly satisfied customers, which usually is not enough to sustain a business.On the other hand, customer loyalty is achievedwhen customers buy a product from the same supplier again and again-sometimes paying even more for it than they would for a competitive product.Customer loyalty is the payoff for delivering value and generating satisfaction. Loyal customers forgive your mistakes. They provide valuable feedback. They may require less service. They refer their friends (and sometimes even strangers). Moreover, studying your loyal customers can give you a competitive edge for acquiring new ones, because people with a similar profile would likely be a great fit for your products.