The Impact of Customer Experience on Loyalty

There is a fundamental thing that I think most leader miss about #CustomerExperience: It's not about scores, ease, or usability. It's about improving customers' lives. Far too many companies have #CX leaders who are merely #UX leaders, focused on designing and deploying websites and apps that are usable. Others have CX programs that are entirely focused on cutting costs and increasing margins. And, even the best CX programs are often obsessed with NPS and CSAT scores, which at least is more customer-centric than the others but still misses the point. The heart of CX and customer-centricity is in the commitment to improve customers' lives. Full stop. This doesn't imply that CX is about harming the organization to benefit the consumer or client. Instead, it's about leveraging customer-centricity to build profitable and sustainable growth. Every business in the leader in the world is tasked with improving margin and delivering more profit for shareholders. It's what they are compensated to produce. But there are different ways to make this happen. The customer-centric way is to create such a terrific experience for customers that they remain rabidly loyal, willing to pay more, unavailable to competitors, and interested in purchasing more of what you offer. There's a reason why Apple can claim less than 20% share of the global smartphone market and 10% of the PC market, and yet it routinely commands the highest market cap of any corporation on earth. My point is that if your company's route to profitability is through shrinkflation that annoys customers, but you put effort into improving your content, that is not a way to build loyalty. If you are an insurance company denying ever more claims to improve margin, no amount of UX enhancements to your apps will change the way people feel about you. If you are constantly adding fees, raising prices, and cutting services without considering how you're doing even more to improve customers' lives, you cannot expect better NPS, more loyalty, and an improved reputation. CX isn't some trick you do to distract customers while you deploy policies that harm them. CX is about knowing how to earn customer trust and loyalty so that you produce strong and sustainable business outcomes. This why, although bottom-up CX can deliver some improvements, it is the top-down commitment from leaders to be customer-centric that separates the long-term winners from the losers. Is CX a program at your organization? Or is it a way of life? And does your commitment to customers only extend to how much they buy from you, or are you striving to improve customers' lives?

Let’s talk about something that doesn’t show up on a balance sheet but drives everything from bookings to brand loyalty — the return on guest experience. Not ROI in terms of spreadsheets and budgets. I’m talking about emotional ROI. The lasting impact you leave on someone who walks through your doors, boards your ship, or checks into your resort. That feeling they take home with them — that is the return that fuels your reputation, your word-of-mouth, and your repeat business. I’ve stayed in places with marble floors and Michelin stars, and I’ve stayed in off-grid jungle retreats with no room service. You know what sticks? The places that made me feel seen. The properties that knew my name, remembered how I took my coffee, gave me an experience instead of just a service. And when a property gets that right — it’s not just hospitality, it’s loyalty engineering. Here are 5 tactical ways to increase your return on guest experience: 1. Train for micro-moments. Every team member, from housekeeping to the GM, should be trained to look for and act on small opportunities — remembering a name, offering a local tip, adjusting the music based on guest mood. The little things create emotional spikes. 2. Ditch the script. People want personality, not protocol. Let your staff bring their authentic selves to interactions. It builds rapport and makes experiences feel genuine, not manufactured. 3. Personalization > automation. Use data to remember birthdays or preferences, but don’t let it feel like a CRM robot. Blend tech with real human touch to create “how did they know that?” moments. 4. Create content-worthy touchpoints. Today’s travelers are storytellers. Design moments they’ll want to share — visually and emotionally. Think arrival experiences, surprise amenities, or staff interactions that make people grab their phone (in a good way). 5. Make feedback a conversation, not a form. Don’t wait for the post-stay survey. Ask real questions while they’re on property, and show you’re listening. That’s how you turn a near-miss into a five-star memory. The return on guest experience isn’t about what they pay — it’s about what they remember. Get that right, and you don’t just win guests, you build fans for life. ------ I'm Scott Eddy, keynote speaker, social media strategist and the #15 hospitality influencer in the world. I help hotels, cruise lines, and destinations tell stories that drive revenue and lasting results, through strategy, content, and unforgettable photo shoots. If the way I look at the world of hospitality works for you, and you want to have a conversation about working together, let's chat: scott@mrscotteddy.com.

WANT CUSTOMER DELIGHT? GO THE EXTRA INCH, NOT THE EXTRA MILE In a world where companies strive to “go the extra mile” for their customers, I propose a counterintuitive thought: You don’t need to go a mile. You just need to go an inch. The smallest, low-cost gestures can have a massive impact on customers, turning ordinary transactions into memorable experiences. The secret - search for the asymmetry between cost and impact. Going the extra inch requires minimal effort and often costs next to nothing. It could be a handwritten note, a smile, a gesture of personal recognition, a small act of kindness. But the effect on customers is profound. It creates emotional connections, fosters loyalty, and makes customers into advocates. The irony - while everyone is busy trying to “go the extra mile,” it is the extra inch that nets you miles of customer loyalty. THE I.N.C.H. FRAMEWORK To master the art of the extra inch, use this simple yet powerful framework: I – Identify Moments of Truth: Look for touchpoints where expectations are neutral or low. These are prime opportunities to surprise and delight. For instance, when I got my car serviced at the Lexus dealership, they washed and vacuumed the car and left a red carnation flower on the dash. I have told more than 10,000 people about the 50-cent carnation. How’s that for ROI? N – Notice the Little Things: Train employees to observe and remember small details about customers—preferences, moods, or special occasions. At the Oberoi Hotel in Mumbai, I asked for a memory foam pillow. Every time I stay there, they put a memory foam pillow on my bed. C – Customize the Experience: Personalize the interaction or gesture. Even the smallest customization can create a huge emotional impact. At Chewy, when a customer returned dog food after their pet passed away, they received a condolence card and flowers. It wasn’t about making a sale; it was about showing empathy. H – Humanize the Interaction: Move beyond scripted conversations. Authenticity and empathy resonate more than robotic efficiency. At Café Lucci, our favorite Italian restaurant in Chicago, the valet, the server, and the owner Bobby - all know us, know our kids, and always ask about the family. We are customers for life! In the race to “go the extra mile,” it’s easy to overlook the power of the extra inch. The secret to exceptional customer service isn’t grand gestures or expensive perks—it’s the tiny, thoughtful actions that leave a lasting impression. Going the extra inch is about mastering the art of the unexpected. It’s about creating emotional connections through small acts of kindness and thoughtfulness. So, the next time you think about how to delight a customer, remember: You don’t have to go the extra mile. Just go the extra inch. You will get miles of loyalty. #Marketing #CustomerExperience #Loyalty #Advocacy

I used to think I was measuring customer loyalty the right way. Every quarter, I’d report out our NPS score, and every quarter, I’d get the same pushback from leadership: “If our NPS is so high, why are sales down?” “If customers love us, why is churn up?” And honestly? I didn’t have a good answer. I felt dejected as I could feel my credibility and social capital with the execs slip away. I was stuck in the CX trap of measuring advocacy, not behavior. NPS told me customers said they’d recommend us—but it told me nothing about whether they’d actually buy from us again. The lightbulb moment came when I stopped chasing how much customers liked us and started tracking how much they actually spent. That’s when I realized: Loyalty isn’t a feeling. It’s a behavior. So, I pivoted. Instead of leading with NPS, I built our CX strategy around three core metrics that actually predict revenue: 🔺 Likelihood to Purchase Again (Intent) – Are they signaling they’ll come back? 🔺 Repeat Purchase Rate (Behavioral) – Are they actually returning? 🔺 Time to Repeat Purchase (Behavioral) – How long does it take? And guess what happened? 💡 Our CX efforts finally had credibility in the boardroom. When we improved post-purchase experience, I could prove it led to faster repeat purchases. 💡 Marketing and Finance finally saw CX as a growth lever. Instead of reporting on ‘customer happiness,’ I was driving revenue conversations. 💡 We made better investments. Instead of obsessing over ‘improving NPS,’ we focused on shortening the time to second purchase—and sales shot up. The reality is: NPS won’t save you when revenue is down. If you want to be taken seriously as a CX leader, you have to connect the dots between emotion, intent, and action. It’s time to stop measuring how much customers like you and start measuring how much they buy from you. If you’ve had this realization too, let’s talk. Let’s get your CX unf*cked.

Every delightful customer interaction begins with the marketer, and it can only be as powerful as the #CRM and #metadata underpinning it. With agents supporting them at every step of the customer journey creation process, marketers and #customerengagement teams can now create superior experiences shaped by intelligent and emotionally resonant conversations. At a cognitive level, the human brain no longer perceives AI as a “chatbot.” It perceives a relationship. This emotional shift fundamentally changes how consumers relate to brands, fostering deeper loyalty and trust. When customers interact with agents in a way that feels natural, their engagement deepens. The implications go far beyond engagement. Every AI-driven interaction generates a wealth of contextual data, far richer than what brands could ever collect from a single web form or survey. In one conversation, an agent can gather insights about a customer’s preferences, behaviors, and intent, building a more complete, dynamic customer profile. This continuous intelligence loop allows brands to maximize the value of every interaction. Let’s bring this to life with an example... Imagine Melanie, one of your many potential customers. She’s been thinking about joining Posh Fitness, a popular gym chain in her city. Instead of filling out a form, she decides to engage with the agent on their website. As they chat, it quickly feels more like a friendly exchange than a transaction. Melanie shares her fitness goals, whether she wants to lose weight, gain muscle, or improve flexibility, and the agent listens closely, asking the right questions to understand her needs and intent. The agent gathers valuable insights through this conversation that a simple web form could never capture. Melanie mentions her dietary restrictions, her preference for a supportive personal trainer style, and that she loves outdoor workouts but needs a flexible schedule due to her busy life. In just a few minutes, the agent collects a wealth of data about Melanie: her goals, preferences, and availability—all essential to crafting a personalized experience. And because the conversation feels human-like and emotionally resonant, it creates an immediate connection to Posh Fitness. By collecting this richer data early in the relationship, Posh Fitness can offer tailored recommendations and build Melanie’s loyalty well before she signs up. This isn’t just about closing a sale. It’s about building trust and delivering personalized experiences that evoke emotions and feel deeply human. Brands that will thrive in the era of #Agentic #AI are those that recognize the shift from transactional interactions to relationship-driven engagement. This isn’t just about personalization; it’s about creating experiences and dialogues that feel alive—where AI and marketers co-create journeys that adapt in real time, amplifying the impact of every customer moment.

Loyalty isn't what it used to be. 74% of consumers say their loyalty is harder to earn than ever (source: KPMG), so how can your brand buck the trend? Recent studies have illuminated a stark reality: the era of guaranteed customer loyalty is over. Accenture Strategy reports that a whopping 77% of consumers retract loyalty faster than just three years ago. Similarly (and mind-blowingly), NielsenIQ finds that only 8% of shoppers consider themselves truly brand loyal, a drastic plummet from years past. But why the shift? Deloitte points out that 57% of consumers have recently switched brands for better price or value. Meanwhile, PwC underscores that one-third of consumers now place 'trust in brand' at the top of their shopping priorities, moving away from traditional loyalty. This landscape demands a new approach. Brands need to pivot from purely transactional relationships to creating meaningful connections. Here are actionable steps your brand can take: 1. Invest in Trust:  ↳ Enhance transparency and consistently communicate your brand values. 2. Personalize Experiences:  ↳ Leverage data to tailor experiences that resonate personally with consumers. 3. Reward Engagement:  ↳ Develop a rewards system that appreciates more than just purchases, such as social shares or community involvement. 4. Foster Community:  ↳ Build platforms where customers can interact, share experiences, and feel part of the brand story. 5. Adapt Quickly:  ↳ Stay responsive to market changes and customer feedback to continuously improve the offering. (side note: Nift excels at points 2 & 3 above, if you want to chat) Here's what it boils down to—the key to regaining and retaining loyalty lies in understanding and adapting to these new consumer behaviors. As Gartner highlights, 65% of customers are more open to new brands than ever—a challenge, but also an opportunity to redefine what loyalty means in your industry. Let's rethink loyalty together—because it's clear that the rules of engagement have changed.

From a brand perspective, are you consistently, inconsistent?     Consumers may say that they “love” your brand, but can they count on the experience to be good each and every time? It’s typically hit-and-miss. This leads to a slow burn decline in visit frequency. The value equation for most brands remains upside as prices go up and the experience stays the same, if not worse.   I asked 1,000 consumers what it would take it make the “experience worth it” The top consumer priorities out of 27 attributes both QSR and FSR are 1) Affordable pricing for quality meals 2) Consistent food quality and taste From an experience perspective, in both QSR and FSR "Friendly and attentive staff" is statistically higher ranking than “Prompt and efficient service.”   WHY IT MATTERS: >>> Consistency builds trust, which is the cornerstone of customer loyalty. It requires numerous positive experiences to establish, yet just one negative incident to ruin it. >>> 2024 should be a Back-to-Basics year to ensure that we deliver exceptional and consistent service each and every time. >>> The key to winning market share lies in prioritizing customer joy and ensuring employees are well-trained to consistently deliver a great experience every single time.

The "Bad is Stronger Than Good" Rule [One bad experience outweighs five good ones.] Negative events leave a stronger impression than positive ones. 🔴 One rude customer service interaction erases years of loyalty. 🔴 One bad boss makes an entire workplace feel toxic. 🔴 One frustrating experience sends a buyer to your competitor. Leaders and brands must recognize: → Damage control isn’t optional - it’s urgent. → Positive experiences need to outweigh negative ones at least 5:1. → Fixing a bad moment fast earns MORE trust than if nothing went wrong at all. 🔹 91% of unhappy customers leave without complaining (Harvard Business Review). 🔹 A recovered mistake can increase loyalty by up to 30% (Service Recovery Paradox). 🔹 Toxic leadership increases turnover by 48% (Gallup). Proactive leaders don’t just deliver good experiences. They actively repair bad ones. ♟️ Your move: Where in your business is one bad experience creating lasting damage?

𝗛𝗼𝘄 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝘀 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝗮𝘁𝗶𝘀𝗳𝗮𝗰𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗟𝗼𝘆𝗮𝗹𝘁𝘆 👌 Customer satisfaction isn’t just about having a great product—it’s about making sure customers know how to use it effectively. A well-trained customer is a happy customer, and happy customers stick around. Investing in training is one of the most powerful ways to build trust, improve retention, and drive long-term loyalty. Why? 1. Training Reduces Frustration Many customers leave not because a product is bad, but because they don’t fully understand how to use it. Confusion leads to frustration, and frustration leads to churn. ✅ Clear, accessible training helps customers get the most out of your product from day one. ✅ Self-service learning empowers users to solve problems on their own, reducing reliance on support. 2. Educated Customers Stay Longer Customers who feel confident using your product are more likely to continue using it. Research shows that trained customers have higher retention rates because they see value faster and use more features. ✅ Onboarding training ensures new users get started smoothly. ✅ Advanced training modules help customers grow with your product, increasing long-term engagement. 3. Training Strengthens Trust and Brand Loyalty People trust companies that help them succeed. A business that actively invests in customer education builds credibility and deeper relationships. ✅ Well-informed customers feel supported and valued. ✅ When customers trust a brand, they are more likely to renew, upgrade, or explore new offerings. 4. Happy Customers Become Advocates When customers feel confident using your product, they don’t just stay—they recommend it to others. Word-of-mouth marketing is one of the most powerful growth drivers, and well-trained customers become your best ambassadors. ✅ Education programs increase referrals and organic growth. ✅ Customers who understand a product are more likely to write positive reviews and share success stories. 5. Training Reduces Support Costs Every call to customer support costs time and money. When customers can troubleshoot issues independently, your support team spends less time answering common questions and more time handling complex problems. ✅ Help customers help themselves with video tutorials and FAQs. ✅ Reduce ticket volume by providing proactive education. Training: A Win-Win for Businesses and Customers Educated customers are happier, more loyal, and more likely to advocate for your brand. By making training a priority, companies can create long-lasting relationships, reduce churn, and turn customers into lifelong supporters. If you want higher satisfaction, stronger loyalty, and more referrals, it’s time to invest in customer education. 🚀 #Customers #Training #Scalability #LupoAI #learninganddevelopment #Innovation