Join thousands of weekly readers and receive practical marketing advice for FREE.
MarketingSherpa's Case Studies, New Research Data, How-tos, Interviews and Articles

Enter your email below to join thousands of marketers and get FREE weekly newsletters with practical Case Studies, research and training, as well as MarketingSherpa updates and promotions.


Please refer to our Privacy Policy and About Us page for contact details.

No thanks, take me to MarketingSherpa

First Name:
Last Name:
Jul 22, 2008

New Chart: Service Tops Price for Customer Loyalty

SUMMARY: Customers and vendors differ on the primary reasons for parting a company. Vendors cite price pressure; customers say that itís the service that pushed them away. The key takeaway from this chart: price does not play a major role in achieving customer loyalty.

Please Note:
This article is only available until July 29th
Get unlimited access to this article as well as to 560 how-tos, more than 800 Case Studies, and 300 interviews just setup your MarketingSherpa Membership free 7-day trial.

Customers and Vendors Disagree on Reasons for Loyalty
View Chart Online

Click here to see larger, printable version of this chart

This weekís Sherpa chart reflects a poll conducted with webinar attendees. We asked customers why they left a vendor, and we asked vendors why they think their customers left them. The two groups had very different answers.

Overwhelmingly, vendors reported that price pressures caused their clients to leave them. Thatís natural because itís usually sales people who bear the bad news, and they tend to identify price for two reasons. One: itís beyond their control. Two: the customer often cites price as an easy answer that canít be disputed and doesnít cast blame on sales or on account management personnel.

When we asked the customers why they left, however, price ranked a distant second to service. Thatís the key takeaway for this week.

The disparity underscores an essential point in this age of commoditization: customer relationships and customer service can bolster loyalty and provide a basis to charging a price premium. Loyalists are customers who have a vendor relationship that goes beyond price and feature sets Ė their experiences with the company, its employees, website, products and brand create a perception of value that transcends price.

The survey results revealed some surprising information about customer loyalty. First, customers are less likely to leave for a competitor over price and will give you the opportunity to keep the business. Second, they are more willing to pay a premium to continue their relationship. Third, they are strong external advocates of the brand.

Next week, weíll look at the top ways to build customer loyalty.

Useful links related to this article

Not a Subscriber to Sherpa's Chart of the Week? Click Here to Get a New Chart Delivered to Your Inbox Every Tuesday!

More Research Data from Sherpa:

MarketingSherpaís B-to-B Lead Generation Handbook:

See Also:

Post a Comment

Note: Comments are lightly moderated. We post all comments without editing as long as they
(a) relate to the topic at hand,
(b) do not contain offensive content, and
(c) are not overt sales pitches for your company's own products/services.

To help us prevent spam, please type the numbers
(including dashes) you see in the image below.*

Invalid entry - please re-enter

*Please Note: Your comment will not appear immediately --
article comments are approved by a moderator.

Improve Your Marketing

Join our thousands of weekly Case Study readers.

Enter your email below to receive MarketingSherpa news, updates, and promotions:

Note: Already a subscriber? Want to add a subscription?
Click Here to Manage Subscriptions

Best of the Week:
Marketing case studies and research

Chart Of The Week

B2B Marketing

Consumer Marketing

Email marketing

Inbound Marketing

SherpaStore Alerts


We value your privacy and will not rent or sell your email address. Visit our About Us page for contact details.